Simple move to save £337 a year on broadband bills – it’s easy and takes minutes
MILLIONS of people could be paying an extra £337 a year by failing to switch from broadband deals with sneaky contract terms.
Around 11million broadband customers are at risk of paying more than they need to on their broadband deals, exclusive research from Utility Warehouse for The Sun has found.
This is because of pesky mid-term price hikes, which are written into a lot of broadband and mobile phone contracts.
These agreements mean that around April each year, providers can increase what they charge, usually in line with inflation plus an added percentage (for example, Consumer Prices Index (CPI) inflation + 3.9%).
From January 15 next year, providers will be banned from doing this in percentage terms and will have to include an exact pounds and pence figure in your contract - but this will still mean customers have to pay extra.
Research found that many customers are actually aware of these increases, but are choosing not to switch service providers.
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Reasons for this include a fear of being without a broadband during the switch or being met with even worse service by their new provider.
But, the research found that customers who were not shopping around for deals were at risk of spending hundreds of pounds more than they needed too.
It was discovered that those who don't switch their contracts ovare losing an average of £28 a month, or £336 over 12 months.
For example, customers who were paying £25 for one service in April 2023 saw a 14.4% increase due to mid-term price hikes, which added £3.60 to their monthly bill - or £43.20 over the course of 12 months.
Then, in April 2024, their bills would have gone up by a further £2.26 a month.
But there are some providers - usually smaller brands - which don't include these price hikes at all, and moving to them could save customers money.
David Walter chief growth officer at Utility Warehouse told The Sun: "Millions of us depend on broadband to stream movies, download music, shop online and work from home."
"But as our research shows, many households are reluctant to take the plunge with a new supplier and instead are prepared to make some pretty big personal sacrifices to avoid switching in case they get a worse connection or their service drops out during the switch."
Providers with no mid-contract price rises
If you are worried about mid-contract price hikes, you might want to consider switching to a provider which does not include them.
Price comparison websites are a great way to check if you can find a better deal.
In some cases, your current provider might be willing to offer a better deal if you tell them you are switching.
Here is a list of all UK providers which do not impose mid-term price hikes:
- Hyperoptic
- Trooli
- Cuckoo
- Zen Internet
- Utility Warehouse
- Voneus
- Wessex Internet
- Brsk
- Connect Fibre
- Hull Fibre Link
- Broadband
- Octaplus
- Open Fibre
- Squirrell Internet
- Infinics
- Yayzi
- Fiber Zone
Why bigger may not always be better
Sabrina Hoque, broadband expert at Uswitch.com explains why going with a smaller provider can be the ticket to getting a better deal.
There are some smaller alternative providers that offer faster speeds at often more affordable prices than their bigger competitors.
Some of them, such as Hyperoptic and Trooli also don’t raise their prices mid contract, so are worth investigating.
Customer satisfaction tends to be high with these alternative providers, one of which is Community Fibre, who were voted by customers as one of the Broadband Providers of the Year at this year’s Uswitch Telecoms Awards 2024
Before you switch it also worth reading the terms and conditions of your new contract and making sure you fully understand the deal.
You should also do your research and read about others experience with the brand.
Sabrina Hoque, broadband expert at Uswitch.com, told The Sun those who switch broadband providers save on average £179 over an 18-month period.
She said: "Broadband prices have steadily increased in recent years, and it doesn’t help that many providers include annual price increases as part of the terms when you sign up.
“To make sure you’re getting the best deal, it’s always worth having a look at what packages are available at your premises. Prices and speeds will vary from address to address, however most people will have a range of different deals to choose from."
She added: "If you’re out-of-contract on your existing broadband plan, it’s likely you’ll currently be paying more than you need to.
"If you switch you could save on average £179 over an 18-month period, as well as the potential for faster speeds and a more reliable connection."
Changes to mid-term contract price hikes
In January 2025, regulator Ofcom is introducing a rule that telecoms customers must be told upfront in pounds and pence about any price rises their provider includes in their contract,
It follows an investigation by the watchdog which found that more than half of broadband customers do not know how inflation rates such as CPI and RPI impact their contract.
Providers can still raise prices in the middle of a contract but they have to spell it out more clearly for customers.
Major firms such as BT and Vodafone have already changed their pricing practices in response to Ofcom's consultation.
Can I leave my contract if my prices go up?
Being met with price rises can be a stressful experience, especially if you are worried about your financial situation.
Most contracts come with terms and conditions that say your provider can increase the price each year - either by a set amount, or an amount linked to inflation.
If your terms and conditions don’t say your provider can increase the price each year, your provider should have given you 30 days’ notice before putting up the price of your deal.
You won’t be able to cancel without a fee if either:
- You signed up to the contract before 23 January 2014, or
- You were told at the start of the contract that the price would be going up, for example if you signed up for a 18 month contract but the first 3 months were at a discounted rate
- Your terms and conditions say your provider can put the price of your contract up each year
If you are moving house you should check if your provider offers the same service in your new area.
If they do, you might have to pay a small fee to move the service to your new address.
How to complain about your provider or to switch
Any complaints about your mobile or broadband should be taken to the Communications Ombudsman if eight weeks have passed since you complained to your provider directly.
It's a free service and handles issues between customers and suppliers.
If they help take your complaint on, they can only help back bill you for 12 months.
That means you won't be able to get help getting money back before this.
If you straight up want to leave your current provider, the first thing to do is check whether you are out of contract.
If you are, you should be fine to switch without any extra costs.
If you're not, you might have to pay some hefty early exit fees - so make sure you find this out.
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The next thing to do is find the best deal - comparison sites are usually the best bet to help you with this.
Websites like USwitch, MoneySupermarket and MoneySavingExpert.com are worth using to shop around.
BEFORE YOU SWITCH..
If you’re struggling to pay for your phone or internet, talk to your provider, Citizens Advice recommends the following
Ask if they can offer you a cheaper deal. You can find their contact details on their website or on a letter from them.
You could tell your provider you're thinking of switching to a cheaper deal with a different provider. Your provider might offer you a cheaper deal to get you to stay with them.
If you don’t want to stay with your current provider, find out if you’ll be charged an ‘exit fee’ to leave - check your contract or contact your provider. You’ll usually be charged an exit fee if you want to leave before the end of a fixed-term contract. This can be expensive, so it might be better to wait until your current contract ends.
You can check if you’ll be charged an exit fee to leave your mobile contract by texting the word ‘INFO’ to 85075. It’s free to text this number.
If you’re near the end of your contract, your provider should contact you to remind you. They’ll also let you know about their best available deals.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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