The changes, expected to come into force next year, follow growing pressure from campaigners including Martin Lewis, who has long argued that cancelling should be as simple as signing up.
Lewis has repeatedly highlighted how difficult it can be to exit contracts, despite how easy it is to join them.
“My view has always been quite simple,” he said. “I should get out of something the same way I got into it.
“If I signed up online, I should be able to cancel online. If I called, I should be able to call.”
He pointed to common frustrations where customers can sign up in minutes but face long waits, multiple transfers and pressure tactics when trying to cancel.
What the new rules will change
Under the planned reforms, companies will be forced to make subscriptions clearer and easier to manage.
Key changes include:
Reminder notices before free trials end or contracts renew
Easier cancellation using the same method used to sign up
A 14 day cooling off period after renewals or trial periods
Simpler and faster exit processes
Consumers are also expected to save money, with the Government estimating average savings of around £14 a month per unwanted subscription.
Millions caught in subscription traps
The scale of the problem is significant:
155 million active subscriptions across the UK
Nearly 10 million believed to be unwanted
3.5 million people rolled onto paid plans after free trials
1.3 million hit by unexpected auto-renewals
Many consumers only realise they are paying after money leaves their account.
Government promises action
Kate Dearden said the changes are designed to give people more control.
“There’s nothing more frustrating than seeing money you’ve worked hard for disappear from your account for a subscription you’ve forgotten,” she said.
“These new rules will make subscriptions clearer, fairer and far easier to cancel.”
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While the law has been passed under the Digital Markets, Competition and Consumers Act, the detailed rules are still being finalised.
That means for now, many consumers may still face difficult cancellation processes.
Until the new rules arrive, experts suggest taking simple steps to avoid unnecessary costs:
Check bank statements for unused subscriptions
Cancel free trials before they end
Avoid long contracts where possible
Set reminders for renewal dates
Lewis warned people to stay alert until the changes fully take effect, particularly as complex systems can hit vulnerable users hardest.
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