UK households are being urged to check their bank statements for forgotten direct debits, as a major lender warns families could be throwing away hundreds of pounds each year on unused services.
The £400 'zombie' subscription drain
Nationwide Building Society has issued a stark warning that the average British home is wasting approximately £400 annually on so-called 'zombie' subscriptions. These are recurring payments for services, apps, or memberships that consumers have signed up for but no longer actively use or need.
According to the building society's analysis, the typical UK household spends around £1,200 every year on various subscriptions. However, a significant portion of this expenditure—roughly one third—is going entirely unused. This financial leakage comes at a time when many families are closely scrutinising their budgets amid the ongoing cost of living pressures.
How to hunt down and cancel forgotten payments
Mark Nalder, the Service, Operations and Performance Director at Nationwide, emphasised the importance of actively managing regular outgoings. Speaking to the Guardian, he advised: "Whether it's pooling resources for a cheaper family plan with your housemates or cancelling memberships you've forgotten about, managing your regular outgoings and factoring them into your budget can be crucial in avoiding overspend."
Consumer experts recommend a systematic approach to regaining control. Rebecca Bebbington from the discount website NetVoucherCodes outlined a clear strategy: "Start by making a full list of everything you pay for regularly - monthly, quarterly or annually. Note down which services you actually use and mark down the renewal dates."
For media and entertainment subscriptions, Bebbington suggests a tactic known as "leapfrogging." She explained: "Instead of juggling multiple streaming subscriptions, stick with one at a time. Plan how you watch, enjoy, cancel and then hop onto the next." This method allows consumers to enjoy content from different platforms without the cumulative cost of maintaining several subscriptions simultaneously.
New consumer protections on the horizon
Help is coming for consumers later this year in the form of strengthened government regulations. New rules will require businesses to be completely transparent about renewal terms during the initial sign-up process. Companies will also be forced to send clear reminders to customers before taking payment and must honour cooling-off periods, allowing buyers to withdraw if they change their minds.
These regulations will grant the Competition and Markets Authority (CMA) enhanced powers to enforce consumer protection laws, offering greater safeguards against unfair practices in the subscription economy.
The message from financial experts is clear: a regular audit of your subscriptions is no longer just good practice—it's an essential step in preventing hundreds of pounds from slipping away unnoticed each year.
