Written question asked by Andrew Snowden (Conservative) on Friday, 10 April 2026, in the House of Commons. It was due for an answer on Tuesday, 14 April 2026. It was answered by Lucy Rigby (Labour) on Monday, 20 April 2026 on behalf of the Treasury.

Subscriptions: Payments

Question: To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of requiring banks to implement stronger safeguards or alerts for recurring payments initiated after free trials.

Answer

The Digital Markets, Competition and Consumers Act (DMCCA) 2024 sets out new consumer protection rules for subscription contracts. Once the rules are in force, traders will have to provide clear information about subscription contracts before a consumer signs up, ensure that arrangements to exit the contract are straightforward, and provide a 14-day cooling-off period after a 12month+ contract or trial auto-renews.

Secondary legislation is required to implement the regime. We consulted on proposals and the Government Response can be found here: Consultation on the implementation of the new subscription contracts regime - GOV.UK

The new protections will save the average consumer £14 per month for every unwanted subscription they cancel. The Department for Business and Trade published an Impact Assessment alongside the DMCCA: Subscription traps: annex 2 impact assessment

The DMCCA requirements will apply to traders offering subscriptions and the Government currently has no plans to introduce new requirements on banks to tackle subscription traps. The Government will keep the effectiveness of the new rules under review.

Secondary information

Type: Written question
Reference: 125065
Session: 2024-26
Subjects: Bank services Payments Subscriptions
Link: View this Written question on www.parliament.uk

Subscriptions: Payments

Secondary information

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