MILLIONS of households are overpaying an essential household bill by up £288 a year.
Broadband customers who fail to shop around are wasting hundreds of pounds every year.
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The Sun can reveal that millions of out-of-contract customers pay an average of £52 a month for their internet costs.
In contrast, those who are in contract pay an average of just £38 per month, according to the AI household money-saving tool Nous.
Nous suggests that “hardly anyone” should be paying more than £28 per month for broadband.
This means millions of people could be wasting up to £288 a year by not switching to a better deal.
Greg Marsh, consumer champion and chief executive of Nous.co, said: “Millions of households who are out of contract on their broadband are overpaying by hundreds of pounds a year.
“And no wonder – staying on top of all our household bills is boring, stressful and time-consuming.
“Unfortunately, suppliers know this – and use it to take advantage.”
Check if you’re out of contract
YOU can check your contract status by asking your provider – over the phone or livechat – or by logging into your account online.
You may also be able to find your contract end date via your provider’s app (if you have downloaded it), by checking a bill, or looking through correspondence with your provider.
- BT – 0800 800 150
- EE – 0800 956 6000
- O2 – 0344 809 0202
- Plusnet – 0800 432 0200
- Sky – 0333 7591 018
- TalkTalk – 0345 172 0088
- Tesco Mobile – 0345 301 4455
- Three – 0333 338 1001
- Virgin Media – 0345 454 1111
- Vodafone – 0333 304 0191
CUT YOUR COSTS
Switching contracts is one of the single best ways to save money on your broadband bills.
But if you can’t switch mid-contract without facing a penalty, you’d be best to hold off until it’s up for renewal.
Once you’ve checked to see if you can switch you’ll need to do two things to bag a better deal.
1. Find the best deals on the market
It’s easy to find out if there’s a better deal available for you.
Comparison websites provide information on the best deals out there.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, speed and provider.
This should make it easier to decide whether to renew your contract or move to another provider.
If you find a great deal elsewhere and are happy to change providers, then go for it.
However, if you do not want to switch and are happy with the service you’re getting under your current provider – haggle for a better deal.
2. Haggle for a better deal
If you’re out of contract, you’re probably paying too much, and it’s time to speak to your provider.
They might be able to match, or even beat, the deals you’ve seen elsewhere.
You can still make significant savings by renewing your contract rather than accepting the tariff you’re given after your deal.
If you need to speak to a company on the phone, be sure to catch them at the right time.
Make some time to negotiate with your provider in the morning.
This way, you have a better chance of being the first customer on the phone, and the representative won’t have worked tirelessly through previous calls, which may have affected their stress levels.
It pays to be polite when getting through to someone on the phone, as representatives are less inclined to help rude or aggressive customers.
Knowing what other offers are on the market can help you to make a case for yourself to your provider.
If your provider won’t haggle, you can always threaten to leave.
Companies don’t want to lose customers and may come up with a last-minute offer to keep you.
Remember, by spending as little as five minutes on the phone to your provider you could save hundreds of pounds.
Check for social tariffs
SOCIAL tariffs are available to households on certain benefits, and usually cost substantially less than a firm’s standard broadband packages.
They’re often available to those on Universal Credit, income support or disability allowance.
Providers offer packages with different speeds and prices, and not all are available across the UK.
Prices range from £12 to £25 a month.
Around 4.2million households are eligible for these cheaper tariffs, but only 55,000 are making use of them.
How you apply for a social tariff varies depending on which supplier you sign up with.
It’s important to shop around when you’re looking for a new broadband deal, as other internet packages could be more suited to your needs.
The regulator, Ofcom, has a list on its website of all the social tariffs currently on offer.
Visit www.ofcom.org.uk/phones-telecoms-and-internet/advice-for-consumers/costs-and-billing/social-tariffs#full-list-of-available-tariffs to view the full list.
It is also worth comparing deals on sites such as MoneySupermarket and GoCompare to find the best deal for your budget.
And be aware that if you’re already mid-way through a contract, you might have to pay an exit fee to leave your contract early.