More than a million subscriptions ditched as living costs bite

More than 1.2 million subscription payments have been stopped since summer 2021, according to a major bank’s analysis of customers’ behaviour.

Lloyds Bank looked at people using the Lloyds Bank, Halifax and Bank of Scotland apps to manage subscription payments between June 2021 and March 2022.

Popular TV, film and music streaming services made up nearly half (47.1%) of regular payments cancelled, with households taking further stock of their discretionary spending as the cost of living climbs.

Regular payments for weight management clubs and gym memberships made up 7.6% of contracts ditched.

Monday is the busiest day for subscription management, the research found, with people aged in their 30s the most likely to use the mobile app to manage payments.

Lloyds Bank has a subscription management tool within its app.

It partnered with Swedish firm Minna Technologies and Visa in 2020 to launch the subscription management service.

The findings follow an earlier spike in people taking out subscriptions during the coronavirus pandemic. Lloyds said new regular subscription payments increased by 70% between January 2020 and March 2021.

Lloyds said the figures indicate people are undertaking a “subscription audit” following the lifting of pandemic restrictions and a rise in day-to-day costs.

Philip Robinson, director of payments at Lloyds Bank, said: “People are looking to take control and budget household spend.”

Here are the percentages of subscriptions cancelled since last summer that fall into various categories, according to Lloyds Bank:

– Streaming services, 47.1%

– Marketplace subscriptions, 17.6%

– Memberships (such as weight management clubs and gyms), 7.6%

– Computer software, 7.1%

– Financial services (such as credit report services), 3.8%

– Gaming, 2.9%

– Telecommunications, 2.6%

– Subscription boxes, 2.1%