Not during on-demand update scan, otherwise I have Windows update service disabled. What's the memory consumption of svchost and which other services are run under the same svchost process?
Perhaps OP is referring to huge memory use at boot time from it? I have recently seen it at over 1 GB on my Win 7 build. Never stays there and svchost.exe -netsvcs always drops to acceptable levels with a short period of time. Appears to me to mirror the earlier issue MS had on the same subject. I applied the fix for that and problem disappeared for a while. My gut is telling me that this is related to the aggressive push by MS to convert everyone to Win 10. I have the GSX crap presently disabled through use of GRC's never10 registry hack.
I had a very similar problem last year and I was convinced that GWX was at the root of it. In my case disabling AeLookupsvc stopped the problem and Windows Update still worked on-demand. I made a note of this at the time , and it may be worth a look :- http://www.wintips.org/how-to-fix-svchost-exe-netsvcs-memory-leak-or-high-cpu-usage-problems/ You need to scroll down a fair way to get past the more obvious stuff
Thanks everyone here for use-full info. Well. Left OS alone with Windows update service active and everything back to normal as it should be. Thanks again to everyone for your help.