Seven million broadband customers face double whammy of price rises on top of £1 billion out-of-contract premium
Seven million broadband customers are overpaying £1 billion a year for being out of contract[1] — £162 on average per household[2]
In a cost-of-living double whammy, their bills will also be going up by between 5.4 and 9.3% a month this spring[3]
Superfast broadband deals are available from just £19 a month and ultrafast connections from only £24 a month[4]
With two weeks to go before prices go up, Uswitch.com calls on those not in a contract to vote with their feet.
Seven million broadband customers are suffering a double sting this spring — overpaying because they are out of contract and also facing inflation-busting price rises[1], according to Uswitch.com, the comparison and switching service.
Out-of-contract households overpay by £162 compared to those with a broadband deal on average, making a total overpayment of £1 billion[2]. And while there has been a lot of coverage of mid-contract price rises for telecoms customers, many out-of-contract customers will not realise that they too are facing yearly increases.
Annual price rises for out-of-contract broadband customers vary between 5.4% and 9.3%, and depend on when the original deal was taken out and which provider they are with. This means that many consumers will be in the dark about how much extra they will have to pay.
By switching to a new deal, households could currently save significant amounts on their broadband, with the cheapest deal currently available being Vodafone Superfast at £19 a month[4].
Uswitch.com is urging bill payers to check if they are out of contract and do a quick online comparison to see the cheaper deals that could help beat inflation.
Adelana Carty, broadband expert at Uswitch.com, comments: “There has been plenty of coverage of mid-contract price rises this year, but broadband customers who are out of contract may not realise that their deal will be increasing too.
“These customers face a double whammy of extra costs, as they are both paying over the odds due to being out of contract and seeing their bills increase by up to 9.3% as well.
“If you are out of contract with your broadband supplier, there has never been a better time to save yourself money. Do a comparison today and see what deals are available.”
Find out more about how to save money on your broadband bill here.
Notes to editors:
Opinium surveyed a sample of 2,000 UK adults from the 17th to 19th January 2022. Results were weighted to reflect a nationally representative criteria.
1. Respondents were asked, ‘are you currently in a contract with your broadband and / or mobile provider? Please think of ‘in contract’ as currently being tied to a contract that has not yet expired, usually over a 12 or 24 month period’, 75% of respondents said ‘yes - in contract with broadband’, meaning 25% are not in contract. According to the ONS, there were an estimated 27.8 million households in the UK in 2020, 25% of households = 6,950,000. Brits are currently overpaying by £162 when out-of-contract, according to Uswitch data. 6,950,000 x £162 = £1,125,900,000.
2. Average savings figure for customers switching broadband on uswitch.com in February. Assumes 18 month contract.
3. Uswitch looked at the price rises affecting customers who signed up to a provider at different points in time. Sources here, here and here.
4. Uswitch data on the best deals currently available.
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.