Government consumer subscription crackdown – what charities need to know

Charity membership subscriptions that are closely linked to a charity’s purpose will be excluded from the government’s proposed regulations for subscriptions.

This exemption, forming part of the new consumer protection rules, will be a relief for many charities that rely on membership-based fundraising models.

The announcement comes as part of a government crackdown announced on 2 April, on unwanted and misleading subscriptions to stop free trials which turn into expensive contracts. The aim is to make it simpler, fairer and less painful for consumers to escape unwanted subscriptions. The measures are expected to save UK consumers around £400m annually.

It is estimated that across the UK there are 155 million active subscriptions with nearly 10 million of them believed to be unwanted. Over 3.4 million people are being rolled from free or discounted trials to fully costed contracts and around 1.3 million are caught out by unexpected autorenewals. These consumers could be expected to save on average £14 per month per unwanted subscription.

Impact on charities

Following on from the consultation on The Digital Markets, Competition and Consumers Act 2024, (DMCCA) the government has recognised the potential unintended consequences for the charity sector.  Many charities rely on subscription-style membership schemes as a core fundraising mechanism, often providing access to cultural, heritage, or environmental experiences that directly support their charitable objectives.

The government has said it will legislate to exclude certain charitable memberships from the scope of the DCMMA. This exemption is expected to broadly apply to contracts between a charity and an individual that provides access to services or experiences directly linked to the charity’s purpose.

Examples include memberships that allow individuals to:

• Attend performances or events run by the charity
• Visit museums, galleries, or exhibitions
• Access historic buildings, landscapes, or heritage sites
• Visit wildlife reserves or environmental conservation areas
• Attend performing arts venues operated by the charity

The key test is whether the membership is intrinsically linked to the delivery of the charity’s charitable objectives, rather than operating primarily as a commercial subscription service.

This policy decision significantly reduces the risk that the new rules could disrupt established fundraising models across the sector, particularly for organisations in the arts, heritage, and environmental spaces.

Areas requiring careful consideration

Despite the broad exemption, not all charity subscriptions will automatically fall outside the new rules. Charities should be aware that certain types of arrangements may still be within scope of the DMCCA and therefore subject to the new compliance requirements.

These include:

• Purely digital subscriptions: Memberships providing access only to online content or services, particularly where they resemble commercial digital subscriptions
• Professional or supporter memberships: Schemes that offer status, networking, or other benefits but are not directly linked to access to charitable activities
• Lottery or prize draw subscriptions: Weekly or monthly lottery-style fundraising products, which are likely to be treated as consumer subscription contracts
• Commercial trading subsidiaries: Where subscriptions are operated through a charity’s trading arm rather than the charity itself
• Hybrid models: Memberships that combine charitable access with significant commercial benefits (e.g. discounts, merchandise, or third-party offers)

In these cases, a more detailed assessment will be needed to determine whether the arrangement falls within the DMCCA definition of a regulated subscription contract.

Gift Aid considerations

The government has also confirmed that Gift Aid treatment will continue to be preserved (subject to the normal rules on membership benefits). This is an important point, as there had been concern that the DMCCA would interfere with legitimate Gift Aid claims. However further secondary legislation is expected.

Next steps for charities

Although the exemption is welcome, charities should not assume that no action is required. The new subscription regime is expected to come into force in Spring 2027, providing a window now for charities to review their subscription and membership models to determine whether they fall within the exemption or any restructuring of arrangements is required.

If you have any questions regarding these new rules and how they will impact you, please do get in touch.