by Broadband users across the UK have been hit with significant price rises – a blow amid the current cost of living crisis.
Since the start of April, BT, Plusnet and EE have increased their prices by 7.9 per cent, Sky by 8 per cent and O2 and Virgin Media by a staggering 8.8 per cent – even for those on a fixed-price contract. However, examining your broadband spending may reveal unexpected ways to save money.
Liz Hunter, director at Money Expert, has provided our Mirror site with a comprehensive guide on how bill payers can significantly reduce their costs.
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First of all, check if your contract has expired
Check the terms of your contract to see if you are still bound by it. This information can usually be found online or in the original paperwork provided.
If your contract has ended, you are in a favorable position. This means that the agreement you had with your provider is no longer valid and you are free to switch to a more cost-effective deal with no exit fees.
If you are still within your contract, switching providers is still an option, but you may incur an early cancellation fee. The silver lining?
Even if you don’t want to pay this fee, there are strategies you can use to lower your bill with your current provider.
Think about the internet speed you really need
Consider your daily internet use. If you are the only user in your family and only need the internet for casual browsing, sending emails, and watching low-resolution videos, a speed of 30MBps or less should be sufficient.
However, if you work from home, use entertainment devices such as gaming, and have multiple devices running simultaneously, faster speeds may be worth considering even though this will come at a higher price.
For example, a 24 month contract with BT offering 36Mbps currently costs around £28.99 per month. Upgrading to an ultra-fast 500Mbps speed would raise this to £49.99 per month.
Over the course of the two-year contract, that’s an increase of over £500. If you are on contract and believe you could cope with a lower speed, you can use this as a bargaining chip with your current provider.
If you’re out of contract, if you’re notified you can’t pay for more speed than necessary when you get a new deal.
Don’t forget to check what speeds are accessible in your area using Ofcom’s Broadband Checker.
Consider package deals
Many providers offer bundled packages including broadband, TV and mobile phone for a lower total cost than buying each service individually. This can be an effective way to ensure immediate savings, so it is wise to compare the potential cost of both during your search.
However, don’t let your supplier ask you to buy unnecessary packages. If you only watch free channels and use mobile data, a big TV and mobile package might not be the best deal for you and could cost you more in the long run.
Be aware that canceling, changing supplier bundling or negotiating any central contract price increases may become more and more difficult.
Use comparison websites to find the best deals
Now that you have all the necessary information, especially about the speed you need and whether you are open to a bundle deal visit a comparison website to find out which provider can offer you the lowest price. Don’t take any action just yet, though.
For now, jot down the deals that seem to offer the best value. Make sure you note down the provider, contract length, speed, monthly cost, set up cost and any bonuses or incentives.
Start bargaining it usually works
With a list of suppliers and their offers in hand, contact your supplier and start the negotiation process. Customers who are willing to call and bargain with their broadband provider save an average of 7%, almost enough to offset the impact of April’s price hike, according to Which.
If you’re nearing the end of your contract or already out, try to see if they can match the deals you’ve found online or better yet, offer a lower price. If you’re still under contract, use your research to negotiate a better deal.
For example, you could:
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Request to cancel services you do not use, such as a TV or landline package.
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Request to add services, such as a mobile phone or TV package, to receive a full discount.
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Request to reduce the speed.
Don’t forget to mention the deals you find online as leverage to get a discount, especially if you got much cheaper deals from other suppliers. If you have been a customer for many years, let them know that customer loyalty can work in your favor.
If you are still not satisfied, threaten to cancel
If your supplier refuses to negotiate, threatening to cancel may be a good move. However, if you are still tied to a long contract, make sure to find out the exit fee before doing so.
If you are out of contract or mid-contract, but comfortable paying the potential exit penalty you will be in a much stronger position. Please inform your provider that, unfortunately, you are thinking of leaving.
This usually means that you will be put through to the ‘customer care’ team, who are often able to offer much stronger discounts and better deals to entice you to stay. If they can’t, it might be time to ditch one of the best deals you’ve found online and get it right.
Check if you are eligible for a social tariff
If you are having trouble meeting your broadband bill, you may qualify for a social tariff. These are reduced-rate broadband deals, sometimes as low as £10 a month, designed to help those on low incomes stay connected.
You will usually be eligible if you are receiving benefits such as universal credit, pension credit or jobseeker’s allowance. If you believe you may qualify, contact your provider to see if they offer a social tariff and apply to switch.
If they don’t provide one, you can switch to a provider that does. In these cases, your provider may allow you to leave your current contract without incurring an exit fee.
