Consumers are to be better shielded from "subscription traps" in a move that will save them a collective £400 million a year, the government has announced.

Fresh regulations, expected to come into force early next year, will ensure consumers receive reminders before free or discounted trials conclude or contracts of 12 months or more automatically renew. Currently many deals people sign up to from streaming providers such as Disney+, Netflix, Now, Sky, Prime, gym, health and fitness firms, and kinds of software just renew without any notification meaning people often don't realise they're still paying.

Consumers must be permittedto cancel effortlessly online if that is where they originally signed up, bringing an end to lengthy waits on hard-to-find phone numbers.

They will also benefit from a new 14-daycooling off period after a free or discounted trial ends, or when a contract renews for 12 months or longer.

However, certain memberships of charitable, cultural and heritage organisations will be exempt from the new regulations owing to their role in preserving and providing access to locations and cultural collections.

Minister for Consumer Protection Kate Dearden said: "There's nothing more frustrating than seeing money you've worked hard for, disappear from your account for a subscription you've forgotten you had.

"These new rules will put consumers back in control of their money - making subscriptions clearer, fairer and far easier to cancel."

There are 155 million active subscriptions held by consumers across the UK, with almost 10 million of them believed to be unwanted.

Over 3.5 million people are being "quietly rolled" from free or discounted trials into fully costed contracts, while a further 1.3 million are caught out by unexpected autorenewals, the Government revealed.

By simplifying the process of cancelling unwanted services, consumers could save approximately £14 every month on average per unwanted subscription, or nearly £170 annually, it added.

Which? head of consumer rights policy Sue Davies said: "Subscription traps can be costly and wreak havoc on finances that are already under strain from the cost-of-living crisis.

"The strengthening of subscription laws will be welcome news for those struggling with rising costs.

"These new rules will help put consumers in the driving seat with proper transparency and protection."

Lord Richard Walker, the Government's "cost-of-living champion", said: "At a time when every pound matters, these new rules will give consumers the clarity and control they deserve.

"By stopping companies from quietly rolling people onto costly contracts and making cancellations far simpler, households can stay on top of their budgets and keep more of their money where it belongs: in their own pockets."