The average UK household spends £41.70 per month on subscription services, compared with an average of £51.65 in 2021, and £45.50 in 2020, according to research by Barclaycard Payments.

The bank’s third annual study on the ‘subscription economy’ looked into how demand for sign-up products and services had evolved following growth throughout the pandemic and the impact of consumer spending in light of the cost-of-living crisis.

Data showed that while the overall spend on subscription services dropped by 4 per cent in June 2022 compared with May 2022, 67 per cent of those surveyed remained signed up to at least one digital or direct-to-door service.

34 per cent viewed such services as important tools to help manage finances in a time of rising costs and 37 per cent reported feeling the services helped them to be more organised. 38 per cent believed that subscriptions represented good value for money.

59 per cent were signed up for exclusive access to content, while 45 per cent believed subscriptions offered a personalised experience.

Other benefits cited by those surveyed included the chance to try new items they may not usually purchase - 55 per cent; convenience was another reason chosen by 42 per cent of respondents; and the reassurance that key products would be delivered regularly was highlighted by a further 42 per cent.

Last month figures from Barclaycard revealed that non-traditional sign-up products and services from retailers that are not usually associated with subscriptions are likely to drive the next phase of growth in the subscription economy.

According to data from the company, retailers that sell higher value items are likely to fuel the next wave of the subscription economy.

Harshna Cayley, head of online payments at Barclaycard Payments, said: “As the cost-of-living continues to increase, we’re seeing consumers engage with subscriptions in new and smarter ways.”

She added: “Our data not only shows the importance consumers continue to place on subscriptions, but also highlights how the benefits of recurring payments play an important role in the management of day-to-day finances.”

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