Whether it’s Netflix, Amazon Prime, Sky, Disney+, Apple TV, Paramount+, Virgin Media or services such as meal subscriptions, music services, gym memberships or leisure passes, UK households could unlock significant savings by re-evaluating their entertainment spending, according to a new calculator.
The tool highlights the financial benefits of scaling back subscriptions, with households potentially saving an average of £128 annually by cancelling just one subscription.
Data from the Department for Business & Trade published in 2023 shows that nearly half (49%) of UK adults pay regularly for entertainment platforms.
While genuine deals and discounts are useful, wasted subscriptions can cost users over the odds and the more we take out, the harder it is to keep track of the ones we are paying for each month.
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The UK Subscription Savings Calculator created by UK Debt Expert enables consumers to track their monthly and annual spend on entertainment and food subscriptions.
Personal finance experts at UK Debt Expert have used the example of an average household with three entertainment subscriptions, one music subscription and one meal box subscription creating an annual cost of more than £750.
The total cost of these subscriptions could buy more than 210 coffees, 63 cinema tickets and even three-weekend getaways (based on an average cost of £200).
Maxine McCreadie, a personal finance expert at UK Debt Expert, says: “Entertainment subscription packages are hugely popular. We know that many people will have a number of direct debits leaving their account every month for two or three different entertainment packages, not to mention other subscriptions for music, meal boxes, fitness apps, and many other services.
“While these monthly expenses don’t feel like much individually, when you look at them as a collective outgoing, it can easily add up to a big chunk of your household’s monthly expenditure. Our calculator will help households to easily compare their spending and make more informed decisions about where savings could be made this year.
“The savings could be put towards a holiday, or for those who like to be super prepared a Christmas spending fund for December festivities.”
Maxine has also provided her expert tips to help people get in control of their subscriptions spending.
1. Be tactical
“Everyone loves to binge a box-set and while you’re engrossed in one series on a particular platform, it’s likely that your other subscriptions aren’t being used.
“Most entertainment platforms offer free cancellation, so stopping payments while you’re focused on one particular series can be a great way to cut back on multiple expenses.”
2. Set rules for cancelling subscriptions
“It’s easy to lose track of subscriptions which you aren’t even using. Use your bank statements to monitor these recurring payments and agree on rules for cancellation.
“You could, for example, cancel any subscriptions which aren’t used for more than two months.”
3. Keep track of free trials
“Signing up for a free trial or introductory offer can be a great way to make the most of a subscription while saving a bit of cash.
“It’s really easy to lose track of these free trials and offers, so make sure you have a reminder set or a note on your calendar to cancel any free trials before you start paying the full price.”