- Millions of broadband users pay more for expired contracts
- Around 4% of users do not know the status of their contract
- No-contract rates typically rise by around £20 or more a month
Many UK broadband users are currently paying more than necessary, largely because they remain on contract-free plans after their initial deals expire.
New research from Go.Compare claims that around 5.9 million broadband users are out of contract and could be paying higher rates, which could cost consumers up to £118 million each month.
With suppliers’ annual price increases coming into effect within days, the extra costs for all customers could reach £1bn – and this could be one of the most expensive months for those who haven’t reviewed their contracts.
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Millions are paying more without realizing it
Around 11% of UK households are out of contract and around 4% of users are unsure of their current contract status.
This lack of awareness means that some households continue to pay higher standard rates without actively choosing to do so, even when better broadband deals are available.
The timing of this situation adds more pressure, and the new adjustments could make bills even higher for those already on more expensive no-contract rates.
“Out-of-contract rates are almost always much higher than contract prices, with costs rising by around £20 a month or even more in some circumstances,” said Go.Compare broadband spokesperson Catherine Hiley.
“For example, my own broadband price will increase by around £50 a month if I don’t switch at the end of the contract. Therefore, forgetting to compare deals and switch providers when the contract ends can be a very costly mistake.”
Regardless of contract status, many users appear to be paying for broadband speeds that exceed their actual needs.
The data suggests that a notable proportion of customers could downgrade their packages without experiencing any significant change in performance.
For households that use the Internet primarily for basic tasks such as browsing or streaming video, lower speed levels may already provide sufficient performance.
At the same time, higher speed packages remain more relevant for environments with multiple users performing data-intensive activities simultaneously.
“While it’s tempting to go for the fastest speeds you can afford, there’s no need to shell out money if you only use the Internet for basic activities.”
Out-of-contract customers retain the flexibility to upgrade to new offers without penalties, providing a direct route to reducing monthly costs.
Closing a new deal before price increases take effect can prevent further increases while locking in a lower rate for a fixed period.
Additional factors such as bundled services or promotional incentives can also influence the overall value of a package, although they vary between providers and contracts.
The broader pattern suggests that rising costs are not driven by a single factor: contract status, pricing structures, and user choices all contribute to the final bill.
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