Martin Lewis offers advice for beating Amazon’s Prime subscription price increase

Martin Lewis offers advice for beating Amazon’s Prime subscription price increase
The annual cost of Amazon Prime will go from £79 to £95, a 20 per cent increase, while a monthly subscription will go from £7.99 to £8.99

Martin Lewis has offered advice for people who want to try to avoid Amazon’s price increase for its Prime subscription.

Prices will go up by as much as 43 per cent, the shopping giant has told customers.

In the UK, the annual cost will go from £79 to £95, a 20 per cent increase. A monthly subscription will go from £7.99 to £8.99.

The new prices will go into effect from September 15 for new customers. Existing customers will see the new prices from the next renewal after that date.

The finance expert advised people that the delay means they will be able to lock in the old price for up to a year, if they subscribe now.

“If you currently pay monthly and you want to keep it, then the best thing you can do, provided you can afford it, is convert now to the annual package, and then you lock in at £79 for the next year, forstalling the rise”, Mr Lewis said.

“If you’re an annual payer it’s more difficult, though if your subscription is due to renew in the few weeks after the 15th of September you could cancel just before that and then get a new subscription at the £79 … forstalling that rise just for a little bit”.

Amazon’s email sent to customers gave no information about why the price was increasing. It only detailed how much prices would be going up by, commit to “continue to focus on making Prime even more valuable for members”, and pointed to the benefits that the membership brings.

However, Amazon said in a statement “increased inflation and operating costs” were to blame from the problems, while also pointing to faster delivery and increased amounts of content. “We will keep working to ensure Prime offers exceptional value for members,” it said.

The news comes as inflation is rising, although many workers have not had a real terms pay increase – leading to strikes from Royal Mail and the Rail, Maritime, and Transport union.

The Office for National Statistics (ONS) revealed that regular wages excluding bonuses plunged by 3.7 per cent over the three months to May against the rate of consumer price index (CPI) inflation, representing the biggest slump since the data started being recorded in March 2001.

Average total pay, which includes bonuses, in the private sector grew by 7.2 per cent over the three months to May, compared with the previous year.

Meanwhile, public sector workers saw a 1.5 per cent increase in total pay after many were subject to a pay freeze.