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Five million households paying £805 million more than they should for broadband due to low confidence in switching

  • Five million households won’t switch broadband networks for fear of losing their connection or the perceived hassle of switching[1]

  • Non-switchers have been out of contract for 19 months on average, paying  £804 million too much for their internet connection[1]

  • One in three (37%) households worry switching will leave them without broadband for a day[2], but in reality nearly three quarters (72%) see no or very little interruption[3]

  • Households switching between different broadband infrastructure networks are most likely to suffer an interruption[4]

  • Uswitch.com presses Ofcom to ensure that all broadband switching is comprehensively coordinated by providers, ensuring consumers can have full confidence in a seamless switching experience.

Five million households who are out of contract with their broadband supplier have been put off switching as they don’t have confidence in the process, which has seen them over pay by £804 million[1], according to new research from Uswitch.com, the comparison and switching service.

Households whose broadband deals have lapsed sit out of contract on average for 19 months, paying £149 more than they should have in that time[1]. 

A fifth of consumers (22%) have never changed their broadband provider[5], and one in ten people (10%) don’t know when they last switched their contract[6], despite the fact that customers whose deals have expired pay an average of £90 over the odds each year[7].

Worries about a loss of connection while changing providers are one fear holding people back from getting a better deal. A third of consumers (37%) thought that switching would leave them without broadband for at least a day[2], but in fact almost three quarters of households (72%) saw little or no loss of connection as they switched providers[3]. 

Just over a third of households (36%) switching between providers on the same network lost their connection for any period of time[3]. However, more than half of consumers (51%) changing broadband networks, such as moving between Openreach, Virgin Media, Gigaclear or Hyperoptic, suffered a loss of internet during the switch[5], making them 42% more likely to lose connection.

Almost half of consumers (49%) who had switched in the last 18 months found the process easier than they had expected, compared to only one in ten (10%) who found it harder[8].

Uswitch.com is calling on the telecoms regulator Ofcom to use its review of the switching process to ensure that all broadband switching is comprehensively coordinated by providers, irrespective of underlying networks, ensuring consumers can have full confidence in a seamless experience.

Richard Neudegg, head of regulation at Uswitch.com, says: “It’s deeply disappointing that five million people are missing out on big savings and faster broadband speeds because they don’t have confidence in the switching process.

“Lots of people have been put off getting a better deal by the fear that they will be left without a broadband connection, but in most cases these concerns are unfounded. The majority of switchers see no, or very little interruption to their service.

“However, there’s still a lot of work to be done to make sure the switching process is quick and reliable, especially between different broadband networks. Making network switching as simple as possible will not only help increase customer confidence but will also be crucial in ensuring consumers actually benefit from the Government's goals of UK-wide gigabit broadband rollout.

“Ofcom must make sure that switching is easy and reliable for all customers, irrespective of which provider they choose, and is particularly important now that our reliance on broadband is greater than ever. Ensuring the process is consistent and easy in all circumstances will help boost the consumer confidence in taking better services.”

Find out how you could save nearly £1,000 a year with Uswitch here.

FOR MORE INFORMATION

Rory Stoves
Phone: 020 3872 5613
Email: rory.stoves@uswitch.com
Twitter: @UswitchPR

Notes to editors
Opinium surveyed a sample of 3,000 UK adults from the 9th to 14th December 2020. Results have been weighted to reflect a nationally representative criteria.
1. Respondents were asked ‘You mentioned you haven’t switched broadband providers in the last 18 months,  why is this?’ 584 said ‘I can’t be bothered with the hassle of switching’ or ‘I am worried about losing internet when switching’. 584 / 3,000 = 19.5% of 27.6 million UK households = 5.38 million households who are concerned about the hassle of switching or are worried about losing connection. Average time out of contract for people in this group is 19.75 months. Average additional payment for out-of-contract broadband customers is £7.56 a month. 19.75 months x £7.56 = £149.31 extra cost for average out-of-contract customer. £149.31 x 5.38 million out-of-contract households = £803 million. 
2. Respondents who had switched broadband in the past 18 months were asked ‘Before the switch happened did you expect the following to be true or false? I would be without broadband for more than a day?’ 37% people answered ‘Yes’.
3. Respondents who had switched broadband in the past 18 months were asked ‘When you switched broadband provider, did you have to go without any internet for a period of time?’ 51% (412 people) said ‘No’. 41% said ‘Yes’. 8% (65 people) said ‘Don’t know’. Respondents who went without internet for a period during switching were asked ‘How long did you have no internet for?’ 107 people went without internet for 60 minutes or less. 107 + 412 + 65 = 584. 584 / 808 people who had switched providers in the 18 months = 72%.
4. Respondents who had switched broadband in the past 18 months were asked ‘When you switched broadband provider, did you have to go without any internet for a period of time?’ 51% of those moving either from or to Gigaclear, Hyperoptic, KCOM or Virgin said ‘Yes’.
5. Respondents were asked ‘When did you last switch your broadband provider? Please think about moving from one provider to another, even if you started a new contract with your existing provider.’ 22% said ‘I have never changed my broadband provider’.
6. Respondents were asked ‘When did you last switch your broadband contract? Please think about changing your contract to change the cost, speed or type of broadband you use even if you remained with the same provider.’ 10% said ‘I don’t know’.
7. Uswitch.com data
8. Respondents who went without broadband for a period of time were asked ‘How long did you have no internet for?’ 61% lost their connection for less than eight hours.
9. Respondents who had switched broadband in the past 18 months were asked ‘How did you find the switching process?’ 49% said ‘easier than expected’.

About Uswitch 

Uswitch is one of the UK’s top comparison websites for home services switching, including broadband, mobiles, SIM Only and insurance. We’ve saved consumers over £2.5 billion off their bills since we launched in September 2000.

In 2022, Uswitch launched its free mobile app, Utrack, to help consumers manage their home energy costs. By connecting to their smart meter, users can track their energy usage hourly, get dynamic insights and calculate potential savings with handy tips. 

Uswitch is part of RVU, a global group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.