Broadband deals: Stop overpaying for internet contracts
ALMOST three quarters of Britons could be overpaying for their broadband after being bumped onto a higher tariff at the end of their original contract.
Barely one in 10 recall being warned that their costs would rise when their initial deal expired, leaving some 15million homes overpaying £1.7billion a year.
The average household on an "out-of-contract" broadband deal is overspending by an average of £113 a year as a result.
New research from First Utility Broadband shows that monthly charges increase by 37 per cent on average after the initial contract expires, something most fail to realise.
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While energy providers have a legal obligation to alert customers 49 days before their contract ends, no such rule exists for broadband.
More than nine out of 10 UK households wrongly expect their broadband supplier to warn them when their initial contract price ends.
Ed Kamm, managing director of First Utility, is calling for new rules to force broadband providers to alert customers: "As with energy companies, many households are paying far too much for their broadband."
As with energy companies, many households are paying far too much for their broadband
He also accused broadband companies of hiding their best deals behind "bamboozling" terms and conditions.
Regulator Ofcom is currently consulting on how to encourage customers to shop around for better deals, but Kamm says companies are reluctant to help because it is not in their financial interests.
Sarah Willingham, restaurant magnate and former star on BBC's Dragons' Den, is also demanding a change in broadband regulations.
She says: "We have already learnt that loyalty does not pay in energy and it is shocking to see the same thing happening in broadband.
"Reminding customers that their contract is coming to an end can help many save hundreds of pounds."
Ewan Taylor-Gibson, telecoms expert at uSwitch.com, says many homes also face creeping line rental costs on top of "eye-watering" out-of-contract price hikes: "The good news is you do not have to put up with it and can get a cheaper broadband tariff."
First, check your bill, to see whether you are still in a contract: "Most run for 12 or 18 months, so if you have not changed provider, you may be paying significantly more than new customers."
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You also need to know your rights. "If your provider announces a price increase to your line rental or broadband package you have the right to cancel without penalty, provided you let it know within 30 days. This applies even if you are in contract," he says.
Once you are out of contract, you can start looking for a cheaper tariff with faster internet speeds.
"Families with four or more users may want to consider superfast fibre broadband, which allows them to enjoy on-demand TV and movies, music and games free from the irritation of buffering and crashing pages," Taylor-Gibson says.
To avoid breaching usage limits, users who frequently download movies or use online streaming services such as Netflix or Amazon Prime should consider a package with unlimited downloads.
Taylor-Gibson adds: "With faster speeds, better service and lower prices on offer, it really does pay to shop around."
Vix Leyton, broadband expert at BroadbandChoices.co.uk, says switching can seem like a lot of bother, but is almost hassle-free these days: "Comparison sites make it easy to compare deals and switch seamlessly."
Many sites allow you to set up an alert warning when your contract is about to expire.
Do not just consider your broadband package in isolation but look at "bundles" that can save you money by combining your landline, digital TV and even mobile phone.
"It can be far cheaper than buying them separately, and reduces admin as you have only one bill to manage. However, avoid paying for services you are unlikely to use," Leyton says.
Many packages offer a choice of pay-as-you-go, free evening and weekend landline calls or inclusive anytime calls.
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Leyton says: "Anytime calls could appeal to those who use the phone regularly and are at home during the day, as you can call anywhere in the UK without incurring large fees.
"Those who typically make calls after 7pm may prefer inclusive evening and weekend calls instead. Some packages include international calling plans."
Leyton says that location also matters: "Some providers have a wide national footprint, while others are only available in certain areas."
Many comparison sites offer a postcode checker, allowing you to see what is available in your area.
Deals change all the time, with many available only for a limited period. For example, TalkTalk TV currently offers fast broadband and Sky Sports from £28.45 a month, or £35 with superfast fibre, in a deal that expires tomorrow.
Deals change all the time so check what is available by visiting sites such as BroadbandChoices.co.uk, CompareTheMarket.com and uSwitch.com.
