Customers signing up to new broadband deals often pay a cheap promotional rate for the length of their contract, with costs rocketing once the contract term ends.
And Ofcom says that around 40% of broadband customers are out of contract – a total of 8.7 million customers – and pay an average of £4.70/mth more than their provider’s average price for their service. Out-of-contract customers are estimated to pay around £500 million extra in total each year compared to average prices.
Ofcom first started reviewing broadband pricing practices back in December 2018, and since then has secured various commitments from broadband providers – with all major providers offering protections to their vulnerable customers.
Now EE, Plusnet and Sky have now become the latest providers to commit to automatic price reductions for vulnerable out-of-contract customers, with EE and Plusnet also promising to give existing customers who are out of contract access to new customer prices.
Remember, ultimately the best deals go to those who check if they could save by switching. Compare the best deals in your area with our Broadband Unbundled tool.