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UK consumers are underestimating the cost of their home phones by a combined £1.6 billion each year, a study has indicated.

Research conducted by Relish - the London-based wireless broadband provider - found that 47 per cent of customers miscalculate the cost of having a landline.

landline home phone bill

According to the firm, the nation "remains perplexed by complicated broadband and landline pricing structures", and this causes many to incur greater costs.

Some 30 per cent of survey respondents admitted they do not know how much they are spending on their landline, estimating the monthly expenditure at £11.39.

However, the average cost of a landline in the UK has risen 68 per cent in the last decade, meaning the average cost of line rental is now £16.77.

In addition, Relish - which offers wireless broadband without the need for a landline - found that 39 per cent of consumers have no idea how much their total broadband and line rental package costs each month.

Will Harnden, Chief Marketing Officer at Relish, said many people have a landline for the sole purpose of accessing the internet, but complicated bills and promotional packages mean consumers struggle to understand how much they actually cost.

"At almost £1.6 billion, this is an unbelievable amount of money for Brits to be spending without realising it, particularly as we enter the new year looking for ways to cut down on unnecessary costs," he stated.

In a previous study, Relish found that more than half of consumers (51 per cent) rarely or never use their landline.

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