Broadband bills soar by 43% at the end of the fixed-contract period

Analysis by Citizens Advice has found that customers who stick with their broadband provider once their initial deal ends end up paying an average of £113 a year more for their broadband.

Broadband providers often hook new customers in with cut-price deals for the first one to two years of their contract. But once that initial fixed-term contract is up, customers start paying around 43% more for their loyalty.

BT is the worst culprit, with prices for their cheapest deal rising by a staggering 67% after the initial deal. Of the top five broadband providers analysed by Citizens Advice, Virgin Media was the provider whose prices stayed the same once the deal ended.

Given that the average customer stays with the same broadband provider for four years – and older customers are more likely to stay loyal for even longer – these price increases are having a significant impact on the nation’s wallet.

“People often choose their broadband deals based on the price that works for them,” explained Gillian Guy, chief executive of Citizens Advice. “But our evidence shows that many do not realise the price will rise after the end of the fixed deal.”

She added that broadband companies should be more transparent about their pricing, and should work to protect more vulnerable customers.

“Extra protections for vulnerable consumers are also a must.”

If you’re worried you’re paying too much for your broadband, or just want to see if you can get a better deal, it may be time to switch. Use our comprehensive online comparison tool to compare broadband deals available in your area, and you could potentially save £113 a year. 

Last updated: Wednesday, 19 April 2017


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