Business programme
Start-Up, Scale-Up by Lloyds Bank Academy
Subscriptions
Find out how to set up and manage your subscriptions.
Introduction to 'Subscriptions'
Subscriptions can be a useful way of paying for something. Like magazines, gym memberships or movie streaming services. Usually, you make regular payments for a service or goods. These payments work automatically, so you don’t need to remember to re-order every time. This can be a real time-saver, but the costs can soon add up.
In this lesson, you'll learn more about subscriptions. You'll find out what they are, how to set them up and use them, plus tips to keep on top of them.
What you'll learn
- What a subscription is.
- How to start and manage a subscription.
- Your choices when a subscription ends.
- Tools and tips to keep track and stay in control.
How long it takes
9 minutes
What are subscriptions?
Chapter 1
How long it takes
3 minutes
Who uses subscriptions?
Recent research shows that:
The UK spends almost £30 billion a year on subscription services.
42 million adults (79%) in the UK have at least one subscription service.
On average, people spend more than £50 each month on subscription services.
What can you subscribe to?
Here are a few examples:
Entertainment
TV, movies, music and games.
Other online services
Language and other learning platforms plus news services.
Food and drink
Fruit and veg boxes, meal kits, coffee and wine.
Charity membership
Annual membership may include regular magazines and member-only offers.
Gym and wellness memberships
From online fitness classes to sessions at your local sports centre.
Gift subscriptions
Receive a different item or selection each month, from flowers to cheese!
Types of subscriptions
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This type offers a set price for a fixed product or service. Like paying £4 a month to receive the same monthly magazine.
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This offers a set price for unlimited access to certain goods or services. This would be something like a gym membership. You pay £15 a month and can go to the gym as many times as you like as long as you are subscribed.
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Pay-as-you-go lets you pay for goods and services periodically without any long-term commitment. You can cancel your subscription at any time. This is common for beauty boxes and similar services. This is where you pay monthly and in return receive a monthly delivery of beauty products.
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You may have heard of 'freemium' packages. They offer limited access to content or services, for free. If you want extra features, you can pay to subscribe. One example is music streaming services. These give you options to listen ad-free or offline, for a charge.
Be aware
For each subscription you take out, you’ll find some terms and conditions. These tell you things like the contract length, how to cancel, the payment terms and any usage limits.
Always make sure you read these and check they work for you before you sign up.
What subscriptions can offer - and what to think about
Many subscriptions let you:
- Save time - Having your goods delivered to you without having to re-order can save you both time and effort.
- Cancel at any time – Some subscriptions give you this flexible option. Always check this, before you sign up.
- Save money – For example, you may not need to pay anything upfront. Plus, some offer lower prices if you subscribe.
Think about:
- The costs – If you take on subscriptions for many different things, these can add up. It can also become harder to keep track.
- Usage – Over time, you may find you use the service less – or even not at all.
- Changes – With time, prices change and services can too. So it's good to check and shop around, especially at renewal time.
Be aware
Not all subscriptions offer all the benefits we’ve mentioned here. For instance, if you’re midway through your subscription, it may be hard to make changes or cancel – or you may need to pay a fee.
Always read the terms and conditions carefully, so you know what to expect.
Using subscriptions
Chapter 2
How long it takes
3 minutes
Getting started
Seen something you want to subscribe to? Start by visiting the provider’s app or website. You’ll see information there about what's included and how to subscribe.
The details will vary from site to site. So, always check the instructions – and those all-important terms and conditions.
Let's look at the general steps involved:
Paying for your subscription
Depending on the subscription, you might need to make a one-off payment or more regular ones. These could be monthly, yearly or something in between.
There are also different ways to pay. Each provider will make it clear which options they offer and what you’ll get for your money.
If you're making a one-off payment, you might choose:
Debit or credit card
Always check out the subscription service to make sure it's safe, before you give them your card details.
Payment services
Platforms like PayPal can be convenient and give some protection if you use the ‘Goods and Services’ option.
Digital/mobile wallets
Like Google Pay and Apple Pay. These may also give protection if things go wrong – check their terms if you’re not sure.
If you need to set up regular payments, common options are:
Direct Debit
You give the company your bank sort code and account number.
This lets them take regular payments from your bank account during the term of your subscription.
Standing order
This may be another option if you want regular payments to come from your bank account.
Unlike Direct Debits, you set up the payment dates and amounts yourself.
Continuous Payment Authority (CPA)
Some services offer this – they may call it ‘recurring payment’.
Here, you’re giving them permission to regularly take the money from your credit or debit card.
Keeping track of your subscriptions
Once you’ve set up a subscription, it’s a good idea to check the details. You should do this every so often during the subscription, too.
Why should you check your subscriptions?
Subscriptions can save you time, but their costs can add up. There’s a chance you may end up paying for things you no longer need. It's always worth reviewing your subscriptions. Check to see if you still use them and that they're value for money.
Where to check your subscriptions
Your bank
- You can check your bank statement for details of payments made.
- Most banks have a spending overview in their banking apps where you may be able to spot subscriptions that are high-cost or that you don't use.
- Some banks also have a section to view all subscriptions in one place.
- You may be able to cancel Direct Debits or standing orders directly from your banking app.
Apps and AI tools
- Apps like Emma, Snoop and Little Birdie use AI to track and manage your subscriptions for you.
- These can let you know about upcoming renewals.
- They may show you where you could save money by cancelling or switching services.
- Note that these apps may charge for this service. You’ll also need to share your bank account details with them.
Are you a Lloyds Bank customer?
Our banking app has a free, built-in subscription management tool. See this handy guide to learn more.
Remember
It's a good idea to review your subscriptions regularly. This helps you keep track of your outgoings.
It can also help you decide whether you want to continue or cancel.
Renewing and cancelling
Chapter 3
How long it takes
2 minutes
Renewing your subscriptions
So, what happens at the end of a subscription period? It often depends on the terms and what you've agreed.
Some subscriptions are set to 'auto-renew'. In this case, your provider will contact you before the subscription is due to end. They’ll let you know the date and cost of the renewal and explain how to stop the renewal if you want to.
Not all subscriptions automatically renew at the end of the contract. The providers may still get in touch, inviting you to renew. They'll let you know how to do this – it’ll be similar to when you first took out the subscription.
So, what happens at the end of a subscription period? It often depends on the terms and what you've agreed.
Some subscriptions are set to 'auto-renew'. In this case, your provider will contact you before the subscription is due to end. They’ll let you know the date and cost of the renewal and explain how to stop the renewal if you want to.
Not all subscriptions automatically renew at the end of the contract. The providers may still get in touch, inviting you to renew. They'll let you know how to do this – it’ll be similar to when you first took out the subscription.
Cancelling your subscriptions
Want to cancel before your subscription ends?
If you are midway through the term of your subscription, check your terms and conditions. There may be fees to pay if you cancel early. For some subscriptions, there may be an option to freeze or pause. This lets you to stop the service for a set period, instead of stopping it completely. You can choose how long you freeze or pause it. At the end of this time, you'll be expected to resume payments.
Cancelling your subscriptions
Want to cancel before your subscription ends?
If you are midway through the term of your subscription, check your terms and conditions. There may be fees to pay if you cancel early.
For some subscriptions, there may be an option to freeze or pause. This lets you to stop the service for a set period, instead of stopping it completely. You can choose how long you freeze or pause it. At the end of this time, you'll be expected to resume payments.
How to cancel
Always check your terms and conditions. Contact the provider to cancel the subscription. If you’ve signed up and paid for a service through an app, you may be able to cancel through the same app. For online subscriptions, you may need to log in and check your account details to see how to cancel.
When you cancel a subscription, this should automatically cancel any future Direct Debit payments for it. It's best to always cancel these yourself. You can use your banking app, or contact your bank to do this. Do check that the subscription contract has ended before you cancel any regular payment methods.
Be aware
Always check that your provider has confirmed the subscription cancellation, before you cancel any payment methods.
Tips for staying in control
Chapter 4
How long it takes
1 minute
Ideas to help you keep on top of your subscriptions
Subscriptions can be a time-saving way to pay for things we use. The regular payments may also help us to budget. But it’s easy to forget them as the payments are taken automatically.
A Citizens Advice survey found that:
People in the UK spend over £300m a year on unused subscriptions.
82% of these subscriptions had been auto-renewed.
One in four signed up to a subscription by accident, mostly due to not cancelling after a free trial.
Our needs and budgets are likely to change over time. That’s why it’s important to know how to get the most of subscriptions and change or cancel them when we need to.
Here are our top tips to do this:
- Always check the terms and conditions before subscribing – Make sure you know what you’ll get, how much it costs and how long you need to commit to.
- Take advantage of free trials – Just make a note of when they end and cancel them in good time.
- Shop around for better deals – See our Comparison sites lesson for more on this.
- Check any messages about subscription changes or renewals – The providers need to let you know in advance of any changes to service or payments.
- Check your credit card or bank statements for the past 13 months – To make sure you pick up any annual payments.
- Think about what you’re getting from your subscriptions – For example, look at how many streaming services you need/use, and how much your gym membership is costing ‘per session’.
- Cancel what you don’t need, use or get value from – Always check whether you’re still in contract and let the provider know before you cancel.
Want to learn more?
Budget
Save
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Lloyds Bank Academy is committed to providing information in a way that is accessible and useful for our users. This information, however, is not in any way intended to amount to authority or advice on which reliance should be placed. You should seek professional advice as appropriate and required. Any sites, products or services named in this module are just examples of what's available. Lloyds Bank does not endorse the services they provide. The information in this module was last updated on 20th April 2026.