Broadband users in the UK have been hit by significant price increases; BT, Plusnet and EE are up 7.9 per cent, while Sky is up 8.02 per cent and Virgin Media is up a whopping 8.8 per cent – even if you’re still in the middle of a fixed-price contract.
Broadband providers attribute their annual price increases to a measurement called the Consumer Price Index (CPI), and this year the CPI is very high, leading broadband companies to increase their prices accordingly. The prospect of having to pay more for broadband bills than last month should be all the incentive you need to make sure you’re not missing out on a simple way to cut outgoing costs, especially when your usage levels don’t change.
The quickest way to find out if you can change your package to a cheaper deal is to contact your provider; If you receive benefits such as Universal Credit or Pension Credit, you can switch to the social tariff – find out more here.
Before you contact your provider, Liz Hunter, Director of Money Expert, has shared a full step-by-step guide to help people reduce their broadband costs.
Check if your contract has expired
Check the terms of your contract to find out if you’re within it. You can usually find out by logging in online or by checking the initial paperwork submitted.
You’re lucky if your contract is up. This means that your contract with your provider has now ended and the terms are no longer valid. Even better, it means you’re free to switch to a better value deal with no exit fees.
If you’re still under contract, you can switch providers, but you may be subject to an early cancellation fee. Good news? If you don’t want to pay the fee, there are some tips and tricks you can use to lower your bill to your current provider.
Consider what speed you really need
Think about how you use the internet on a daily basis; If you’re the only internet user in your home and only need to use the internet for casual browsing, emailing, and watching low-resolution videos, 30 MB/s or less is more than enough. .
But if you work from home, use devices for entertainment such as gaming, and use multiple devices at the same time, faster speeds are worth considering; But this has a price.
For example, a 24-month 36Mbps contract with BT will currently set you back around £28.99 per month. If you upgrade to ultrafast 500Mbps speeds, this rises to £49.99 per month. Over the course of a two-year contract, this equates to over £500.
If you have a contract and decide to switch to a lower speed, you can use this as leverage to negotiate with your current provider. Staying informed if your contract ends means you can avoid paying for more speed than you need when you get a new deal.
Don’t forget to double-check what speeds are available in your area using Ofcom’s Broadband Checker.
Consider packaging
Many providers offer bundled packages, which can include broadband, TV and mobile, at a lower overall cost than buying each service separately. This can be a good way to save money instantly; so it’s a good idea to weigh the potential cost of both during your search.
But don’t let your provider trick you with fancy packages and convince you to pay for a service you don’t need. If you’re only watching free channels and using minimal mobile data, a big TV and mobile bundle might not be the best deal and could end up costing you more in the long run.
Note that bundling can also make it harder (and more hassle) to cancel, switch providers or negotiate mid-contract price increases.
Use comparison sites to compare the best deals
Now that you have all the information you need (specifically what speed you need and whether you’re open to a package deal), head to a comparison site to see which provider can offer you the lowest price.
But don’t make any moves yet. For now, take note of the opportunities that seem most suitable to you. Be sure to include the provider, contract length, speed, monthly cost, setup cost, and any freebies or incentives.
Start negotiating; works in most cases
Armed with a list of providers and the deals they can offer you, call your provider and begin the negotiation process.
Customers who call and negotiate with their broadband provider save an average of 7 percent; This is almost enough to alleviate the impact of the price increase in April.
If you’re out of contract or about to get out of contract, see if they can match deals you found online, or better yet, if they can offer a lower price. If you’re still under contract, use your research to get a better deal.
For example, you can:
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Ask to cancel services you’re not using, such as a TV package or landline
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Ask to add services like a mobile or TV package to provide an overall discount
Ask for speed reduction
Don’t forget to mention the deals you find online as leverage to secure a discount, especially if you’ve found deals that are significantly cheaper from other providers.
If you’ve been a customer for years, let them know; customer loyalty can really work in your favor.
If you’re still not happy, threaten to cancel
If your provider refuses to negotiate, threatening to cancel might be a good move. But if you’re still locked into a long contract, make sure you find out the exit fee before doing so.
If your contract is up or in the middle of it but you’re comfortable paying the potential exit penalty, you’re in a much stronger position. Let your provider know that you are unfortunately considering leaving.
This usually means you’ll move to the ‘customer retention’ team, who can offer much stronger discounts and better deals to encourage you to stay. If they can’t, it may be time to leave and secure one of the better deals you find online.
Remember to be courteous and courteous to the telephone attendant; Because getting frustrated or angry is a surefire way to dissuade them from helping you find a better deal.