Your cookie preferences


We use cookies and similar technologies. You can use the settings below to accept all cookies (which we recommend to give you the best experience) or to enable specific categories of cookies as explained below. Find out more by reading our Cookie Policy.

Select cookie preferences

Skip to main content

Rising broadband prices leave loyal customers paying an extra £61 million per month

  • Broadband and home phone prices have snuck up an inflation-busting 40% since 2011, leaving those who’ve stayed loyal out of pocket

  • Customers who have stayed loyal to their provider could pay £61 million more per month for broadband now than they did four years ago

  • Regular price rises and increasing bills following introductory offers, has meant rising costs for broadband users who don’t switch regularly

  • Nearly a third (30%) have never switched providerand only a fifth (20%) have switched in the past year

  • Introducing end of contract notifications – as seen in the energy market – could save broadband customers up to £151 per year.

Broadband bill payers who stay loyal to their providers have seen their monthly bills rise significantly, according to research by the price comparison and switching service Uswitch.com. Broadband and home phone prices for loyal customers have increased by an inflation-busting 40% since 2011, costing households an extra £61 million per month.

While new customers can cash in on competitive opening offers and a record-breaking number of free broadband deals, existing customers have experienced steep increases in the cost of their broadband and home phone.

Bill payers who have loyally stayed with their broadband providers following the end of their initial contracts are paying on average £8.59 a month – or £103 a year – more now than they were four years ago. With almost a third (30%) of people having never switched provider, this could amount to at least £61 million each month.

More than four in 10 (44%) people are unsure when their broadband contracts end, leaving them at risk of rising bills.But introducing end of contract notifications could encourage broadband users to shop around for a better deal and make savings of up to £151 per year.

The energy market introduced end of fixed deal notifications in April 2014 and as a result,almost six in 10 (58%) energy customers ending fixed term contracts now look into switching tariffs, either with their existing supplier or by moving to a new one .

Most broadband users would like to see something similar in the broadband market. Three in five (60%) say they would like to receive reminders from their providers when their contract comes to an end. More than six in 10 (61%) claim it would make them more likely to switch if this reminder explained what the monthly charges would be increasing to. Bill payers would also like to see offers they might be interested in (67%) and details on how to switch (53%).

The table below shows end of contract broadband costs across the main providers and how these have changed since 2011.

Non-fibre broadband deals (including line rental)

ProviderAverage monthly cost following contract end (2015)Average monthly cost following contract end (2011)
BT£25.20£20.30
Sky£27.40£22.25
TalkTalk£30.99£27.90
Plusnet£26.39£17.75
EE£26.98£18.48
Average£27.39£21.33

Source: Uswitch.com, data correct on 1st October 2015

Fibre broadband deals (including line rental)

ProviderAverage monthly cost following contract end (2015)Average monthly cost following contract end (2011)
BT£42.99£31.90
Sky£37.40N/A
Virgin Media£34.49£27.40
TalkTalk£35.20N/A
Plusnet£31.98N/A
EE£36.35N/A
Average£36.40£29.65

Source: Uswitch.com, data correct on 1st October 2015

Ewan Taylor-Gibson, broadband expert at Uswitch.com, says: “There are no prizes for loyalty. Broadband users who take the time to switch provider or tariff are quids in, but it’s a very different story for the old faithfuls who end up penalised for their inertia. And due to rising prices it’s getting worse. Broadband customers pay 40% more for their loyalty now than four years ago.

“The UK telecoms market shows real similarities to energy, where loyal customers of the ‘big six’ providers end up paying an average of £295 a year more than those who switch regularly .

“In 2014, the energy market introduced end of fixed deal notifications, which encourage more people to consider switching, rather than languishing on expensive tariffs. If Ofcom were to introduce a similar system for telecoms, it would really help people keep track of rising prices.

“If you’re out of contract, move provider to make the most of introductory deals and keep bills down. Remember to make a note of when your contract ends – that’s the time to start shopping around for a better deal.”

For more information visit www.uswitch.com or call 0800 093 0607

– Ends –

For further information please contact:

Lucy Smith (nee Smart), Uswitch.com on 07788 204095 or lucy.smith@uswitch.com

Emily Garnham, Rhizome PR on 020 7297 3164 / 07921 680 683 or emily@rhizomepr.com

FOR MORE INFORMATION

Lucy Smith

Phone: 020 7148 4663

Email: lucy.smith@uswitch.com

Twitter: @uswitchPR

Notes to editors

Pricing is calculated based on the most popular broadband and home phone packages available through Uswitch.com on 1st October 2011 and 1stOctober 2015, for both ADSL and Fibre. All average prices are inclusive of home phone costs. Unless otherwise stated, research is based on a nationally representative sample of 2,000 broadband users by 3Gem in October 2015.

  1. See table below. The average increase of 40% is weighted according to the spread of fibre/ADSL customers in 2011/2015. In 2011, connections were made up of (approximately) 98% ADSL and 2% fibre. £21.33 x 98 = 2090.34. £29.65 x 2 = 59.28. (2090.34+59.28)/100 = £21.50. In 2015, connections were made up of (approximately) 70% ADSL and 30% fibre. £27.39 x 70 = 1917.30. £36.40 x 30 = 1092. (1917.30+1092)/100 = £30.09.Percentage increase is 40%.

 

Type of broadbandOut of contract price (BB and landline)datadata% Increase
ADSL£21.33 (October 2011) £27.39 (October 2015)£21.50£30.0940%
Fibre£29.65 (October 2011) £36.40 (October 2015)

 

  1. The price you pay at the end of a contract has increased by £8.59 per month on average since October 2011 – from £21.50 in October 2011 to £30.09. Thereare 23.7m broadband lines (see Ofcom), 30% have never switched provider (Opinium research of 2,000 broadband users, nationally representative, in June 2015), leaving 7,110,000 broadband customers who could be paying for this increase. 7.1m x £8.59 is £61,074,900 per month.

  2. When asked the question ‘Have you changed broadband provider in the past year?’ 78% said no, 20% said yes, 2% said don’t know.

  3. Average out of contract costs for TalkTalk Unlimited Broadband, Sky Unlimited Broadband, BT Unlimited Broadband & Calls, EE Unlimited Broadband and Calls, Plusnet Unlimited Broadband & Phone Line at £328.68 per year. EE Unlimited Broadband at £177 per year (includes line rental saver). Correct as of 01/10/15.

  4. 5. When asked the question ‘Do you know when your broadband contract comes to an end?’ 30% said no, 56.3% said yes, 13.7% said don’t know.

  5. 6. Ofgem announced a number of reforms to the energy market in January 2014, including introducing end of fixed deal notifications from April 2014:https://www.ofgem.gov.uk/press-releases/finding-better-deal-your-energy-getting-easier-todayOfgemreported in July 2014 that 34% looked into switching tariffs with their current supplier and 24% looked into switching supplier (58%) (Page 40).

  6. When asked ‘Would you like to receive a reminder from your broadband provider when your contract comes to an end?’ 59.5% said yes, 30.3% said no, 10.3% said don’t know.

  7. When asked ‘If this end of contract reminder explained your monthly charges would be increasing, would this make you more likely to switch providers?’ 61.1% said yes, 15.3% said no, 23.7% said don’t know

  8. When asked ‘What would you like to be included in the reminder?’ 67% said offers they might be interested in; 52.8% said details on how to switch.

  9. 10. Based on data available through Uswitch.com in October 2015. Consumers on fixed tariffs ending this month could pay an average of £295 more. £799 from GB Energy is the cheapest on the market. £1094 is the average big six standard tariff.

About us

It’s all about “U”!

Thank you for indulging us over the last 20 years by using a small ‘u’ and a big ‘S’ when writing about our brand in your articles.

We are delighted to let you know that you are now off the hook - it’s big U’s all the way (and small s’s) as we undertake our biggest ever rebrand - so let your autocorrect go wild!

About Uswitch

Uswitch is the UK’s top comparison website for home services switching. Launched in September 2000, we help consumers save money on their gas, electricity, broadband, mobile, TV, and financial services products and get more of what matters to them. Last year we saved consumers over £373 million on their energy bills alone.

Uswitch is part of RVU, a new business that also owns Money.co.uk and Bankrate.

If you would no longer like to receive our press releases please email prteam@uswitch.com with 'unsubscribe'.