The UK government has unveiled plans to clamp down on so-called “subscription traps”, with new rules expected to save consumers around £400m a year by making it easier to cancel unwanted services.

Announced by the Department for Business and Trade today (2 April), the measures will require businesses to provide clearer sign-up information, send reminders before trials end or contracts renew, and offer straightforward cancellation processes, including online exits for digital sign-ups.

The reforms come amid growing concern over the scale of the issue, with around 155 million active subscriptions in the UK and nearly 10 million believed to be unwanted.

The government says more than 3.5 million consumers are estimated to be rolled onto paid contracts after free trials, while a further 1.3 million are caught out by automatic renewals.

“There’s nothing more frustrating than seeing money you’ve worked hard for, disappear from your account for a subscription you’ve forgotten you had,” minister for consumer protection Kate Dearden.

“These new rules will put consumers back in control of their money – making subscriptions clearer, fairer and far easier to cancel.”

Iceland chairman and newly appointed government cost of living champion Lord Richard Walker said: “At a time when every pound matters, these new rules will give consumers the clarity and control they deserve.

“By stopping companies from quietly rolling people onto costly contracts and making cancellations far simpler, households can stay on top of their budgets and keep more of their money where it belongs: in their own pockets.

Under the proposals, consumers will also benefit from a new 14-day cooling-off period after trials end or contracts renew, helping them avoid unexpected charges.

The changes form part of wider reforms under the Digital Markets, Competition and Consumers Act and are expected to come into force in spring 2027.

Click here to sign up to Retail Gazette‘s free daily email newsletter