Consumers have been issued a warning as tens of millions are expected to see broadband price hikes in April.
Some 10 million households on broadband deals face rises next spring, according to new research from Uswitch.com. This is because the majority of providers link their annual price rises to inflation rates.
Providers measure inflation based on the Consumer Price Index or Retail Price Index, with some including an additional price increase of three to four percent on top.
Writing for the Mirror, consumer expert Martyn James explained: "Most businesses will lock you into a contract that lasts for 18 to 24 months. However, you might not have noticed a key contract clause.
"This allows a broadband business to raise the price you pay each month at a set point mid-contract. This is usually every April."
If you want to avoid an expensive surprise in April, it’s a good idea to start thinking about how you could save money right now. Here are some of Martyn’s tips.
Getting a better deal
Martyn says: “If you’re trying to escape to a better deal mid-contract, your main ways out are by explaining to the firm that you can’t afford your current deal or pointing out if the broadband business isn’t delivering on its promises.
“This might involve transferring you to a cheaper deal, coming up with a payment plan to give you a bit of breathing space and helping you cut parts of your existing deal that you don’t need.
“Failing that, you’ll need to demonstrate that the business is in breach of contract if you want to bail early. This could be that the business has changed the way it operates, withdrawn services or introduced significant changes.”
He adds: “If the service in your area is patchy, or you’re not getting the broadband speed you were promised 50% of the time, you may be able to leave without charges too.”
Martyn warns that exit fees are by far the biggest bugbear for broadband customers after service issues. Exit fees are ludicrously complicated and work on a sliding scale.
He said: "So if you signed a two-year contract a few months ago, it’s going to be very pricey to get out of the contract early.
"However, if you’ve got a few months to go, it might be worthwhile. In fact, if you’re near the end of your contract, the broadband provider might be able to offer you a much better deal to stick around."
Avoid going out of contract
Broadband regulator Ofcom estimated that 7.4 million people were "out of contract" in 2021 – a huge percentage of the population.
Martyn explains: “This matters because people out of contract are generally paying much more for their broadband package than new customers.
“If you’ve been out of contract for a few years, then you’ll have had all those price rises stuck on your monthly payments.
“It’s not unheard of for people to be paying upwards of £100 a month for their broadband and TV packages. You can easily halve this, or get your payments down as low as £20 if you are happy to go for a basic package.”
Martyn suggests using free apps like Little Birdie where you’ll get reminders to switch when your contracts come up for renewal.
Shop around!
If you are able to get out of your deal it may be worth shopping around and finding the best option available based on your budget and location.
Martyn says: "Lots of people tell me that they stay with a broadband service that they hate because the other broadband providers may use the same infrastructure.
"Yet we do this with electricity and gas services, so don’t let the underlying systems that bring broadband services to you home put you off. There are great bargains to be had by switching to a different provider."
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