My Lords, I declare an interest as a trustee of the National Portrait Gallery. This issue is particularly important as last week’s Red Book shows that the DCMS’s budget is going to fall in the latter part of this decade. This means that public institutions will be under greater financial pressure. The last thing they need, therefore, is an issue of this kind. I offer my support to my noble friend and urge the Minister to do everything he can to get rid of this anomaly.

My Lords, I declare an interest as a trustee of the National Portrait Gallery. This issue is particularly important as last week’s Red Book shows that the DCMS’s budget is going to fall in the latter part of this decade. This means that public institutions will be under greater financial pressure. The last thing they need, therefore, is an issue of this kind. I offer my support to my noble friend and urge the Minister to do everything he can to get rid of this anomaly.

Is the Minister actually asking for reluctant subscribers to stay with a service just because it is a charity? I find that really difficult to understand. We have to think of that person who goes in, looks at something, says, “I don’t really want to be a part of this”, and chooses to leave. They should have a right to do that.

Is the Minister actually asking for reluctant subscribers to stay with a service just because it is a charity? I find that really difficult to understand. We have to think of that person who goes in, looks at something, says, “I don’t really want to be a part of this”, and chooses to leave. They should have a right to do that.

Every consumer has a right to do that under current consumer protections. They have a cooling-off period of 14 days to cancel that subscription

if it is a distance subscription. Under the new Act, if the subscription is taken up or renewed in person, the cooling-off period is extended to 14 days, so consumers will have the right to cancel or stay within the subscription.

Every consumer has a right to do that under current consumer protections. They have a cooling-off period of 14 days to cancel that subscription

if it is a distance subscription. Under the new Act, if the subscription is taken up or renewed in person, the cooling-off period is extended to 14 days, so consumers will have the right to cancel or stay within the subscription.

My Lords, the problem has been well set out by my noble friend Lord Moynihan and repeated admirably by the Minister. It is a problem that was identified when this Act was going through your Lordships’ House. At the time, my noble friend Lord Offord of Garvel committed to closing this loophole through secondary legislation. Of course, the election interceded, but that is now a year and a half ago. As we have heard, this is a pressing issue for organisations that are beset by cuts to the DCMS budget, the rising impact of national insurance contributions and much more. Will the Minister commit to working urgently to make sure that this loophole is not open in a way that will affect so many arts, cultural and heritage organisations that are loved across the country?

My Lords, the problem has been well set out by my noble friend Lord Moynihan and repeated admirably by the Minister. It is a problem that was identified when this Act was going through your Lordships’ House. At the time, my noble friend Lord Offord of Garvel committed to closing this loophole through secondary legislation. Of course, the election interceded, but that is now a year and a half ago. As we have heard, this is a pressing issue for organisations that are beset by cuts to the DCMS budget, the rising impact of national insurance contributions and much more. Will the Minister commit to working urgently to make sure that this loophole is not open in a way that will affect so many arts, cultural and heritage organisations that are loved across the country?

I thank the noble Lord for that. I assure him that my officials and I are working to ensure that we get this right. The new subscription regime will ensure that in particular situations, including after the contract automatically renews on to a 12-month term, consumers have a 14-day window in which to cancel. Should any changes be needed in secondary legislation that we publish, they will not commence until autumn 2026, so there is plenty of time for charities and heritage organisations to put their houses in order before this regime kicks in.

I thank the noble Lord for that. I assure him that my officials and I are working to ensure that we get this right. The new subscription regime will ensure that in particular situations, including after the contract automatically renews on to a 12-month term, consumers have a 14-day window in which to cancel. Should any changes be needed in secondary legislation that we publish, they will not commence until autumn 2026, so there is plenty of time for charities and heritage organisations to put their houses in order before this regime kicks in.

May I offer the Minister an opportunity to be popular by moving the regulations on online subscriptions further, so that all those who are subject to automatic renewals do not have to click more than twice in order to end a subscription that they do not want to retain?

May I offer the Minister an opportunity to be popular by moving the regulations on online subscriptions further, so that all those who are subject to automatic renewals do not have to click more than twice in order to end a subscription that they do not want to retain?

I thank the noble Lord for that kind suggestion. I am sure my officials, who are sitting in the Box, have heard it.

I thank the noble Lord for that kind suggestion. I am sure my officials, who are sitting in the Box, have heard it.

To ask His Majesty’s Government, in making regulations under section 267 of the Digital Markets, Competition and Consumers Act 2024, what plans they have to account for concerns raised by cultural and heritage organisations regarding the right of consumers to cancel subscription contracts.

To ask His Majesty’s Government, in making regulations under section 267 of the Digital Markets, Competition and Consumers Act 2024, what plans they have to account for concerns raised by cultural and heritage organisations regarding the right of consumers to cancel subscription contracts.

I thank the noble Lord for that. It is precisely what we are doing. We are taking our time to consider the consultation and we are analysing the responses. We must get this right. As I said, charities have to comply with current consumer protection regulations. As it stands, most charities, perhaps because they do not understand the implications of the Act, have been claiming gift aid, even though their membership may be for a provision of services. We need to ensure that HMRC and the DCMS work through the technicalities so that we are not caught in the loophole that the noble Lord mentioned.

I thank the noble Lord for that. It is precisely what we are doing. We are taking our time to consider the consultation and we are analysing the responses. We must get this right. As I said, charities have to comply with current consumer protection regulations. As it stands, most charities, perhaps because they do not understand the implications of the Act, have been claiming gift aid, even though their membership may be for a provision of services. We need to ensure that HMRC and the DCMS work through the technicalities so that we are not caught in the loophole that the noble Lord mentioned.

The noble Lord makes an interesting point. Let us look at the policy. We are talking about unwanted subscriptions, which account for some £1.6 billion a year. This Act will save consumers some £14 a month, which is about £147 million a year. As it stands, charities have to comply with consumer law irrespective of charitable status. Companies, especially digital service organisations, have the legislation that is currently in place, so that will stay as it is. The cooling-off period under the new Act is just an extension from distance contracts to in person.

The noble Lord makes an interesting point. Let us look at the policy. We are talking about unwanted subscriptions, which account for some £1.6 billion a year. This Act will save consumers some £14 a month, which is about £147 million a year. As it stands, charities have to comply with consumer law irrespective of charitable status. Companies, especially digital service organisations, have the legislation that is currently in place, so that will stay as it is. The cooling-off period under the new Act is just an extension from distance contracts to in person.

To ask His Majesty's Government what is their assessment of the representations they have received from heritage and arts organisations regarding the impact of the "two-week cooling-off period" for charity memberships provided for by the Digital Markets, Competition and Consumers Act 2024.

To ask His Majesty's Government what is their assessment of the representations they have received from heritage and arts organisations regarding the impact of the "two-week cooling-off period" for charity memberships provided for by the Digital Markets, Competition and Consumers Act 2024.

To ask the Secretary of State for Business and Trade, if he will take legislative steps to exclude charity subscriptions from the Digital Markets, Competition and Consumers Act 2024.

To ask the Secretary of State for Business and Trade, if he will take legislative steps to exclude charity subscriptions from the Digital Markets, Competition and Consumers Act 2024.

To ask the Secretary of State for Business and Trade, if he will take legislative steps to provide for an excluded contract waiver for charitable memberships in proposed secondary legislation on subscription contracts under the Digital Markets, Competition and Consumers Act 2024 to protect not-for-profit organisations from (a) undue administrative...

To ask the Secretary of State for Business and Trade, if he will take legislative steps to provide for an excluded contract waiver for charitable memberships in proposed secondary legislation on subscription contracts under the Digital Markets, Competition and Consumers Act 2024 to protect not-for-profit organisations from (a) undue administrative...

To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential impact of section 267 of the Digital Markets, Competition and Consumers Act 2024 on platform fees for digital subscriptions.

To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential impact of section 267 of the Digital Markets, Competition and Consumers Act 2024 on platform fees for digital subscriptions.

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of the application of consumer law to charitable membership subscriptions under the Digital Markets, Consumer and Competition Act 2024 on the finances of those organisations.

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of the application of consumer law to charitable membership subscriptions under the Digital Markets, Consumer and Competition Act 2024 on the finances of those organisations.

To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential merits of providing exemptions to the Digital Markets, Competition and Consumers Act (2024) to enable people who pay for charity subscriptions to continue to claim gift aid on membership subscriptions.

To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential merits of providing exemptions to the Digital Markets, Competition and Consumers Act (2024) to enable people who pay for charity subscriptions to continue to claim gift aid on membership subscriptions.

To ask the Secretary of State for Business and Trade, when his Department plans to respond to the consultation on the implementation of the new subscription contracts regime.

To ask the Secretary of State for Business and Trade, when his Department plans to respond to the consultation on the implementation of the new subscription contracts regime.

To ask the Secretary of State for Business and Trade, what plans he has to meet with representatives of (a) museums and (b) galleries to discuss the potential impact of proposals for the implementation of a new subscription contracts regime on those organisations.

To ask the Secretary of State for Business and Trade, what plans he has to meet with representatives of (a) museums and (b) galleries to discuss the potential impact of proposals for the implementation of a new subscription contracts regime on those organisations.

It is a real pleasure to serve under your chairship, Dame Siobhain. It has been a while since you chaired Westminster Hall; it is always a pleasure to see you and I wish you well. I thank the hon. Member for Warwick and Leamington (Matt Western) for leading the debate;...

It is a real pleasure to serve under your chairship, Dame Siobhain. It has been a while since you chaired Westminster Hall; it is always a pleasure to see you and I wish you well. I thank the hon. Member for Warwick and Leamington (Matt Western) for leading the debate;...

I congratulate my hon. Friend the Member for Warwick and Leamington (Matt Western) on securing this important debate. I extend my congratulations to my hon. Friend the Member for East Renfrewshire (Blair McDougall) on his elevation to His Majesty’s Government. It is an honour and a privilege to be a...

I congratulate my hon. Friend the Member for Warwick and Leamington (Matt Western) on securing this important debate. I extend my congratulations to my hon. Friend the Member for East Renfrewshire (Blair McDougall) on his elevation to His Majesty’s Government. It is an honour and a privilege to be a...