- Millions of broadband users pay more due to expired contracts
- Around 4% of users do not know the status of their contract
- Out-of-contract rates often increase by around £20 or more per month
Many UK broadband users are currently paying more than necessary, largely because they remain on out-of-contract plans after their original agreement expires.
New research from Go.Compare claims that around 5.9 million broadband users are out of contract and could be paying higher rates, with the total cost reaching consumers up to £118 million a month.
With annual supplier price increases due to come into effect within days, additional costs for all customers could reach £1 billion, and this could be one of the most expensive months for those who have not reviewed their contracts.
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Millions of people pay more without realizing it
Around 11% of UK households are without a 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 additional pressure, and the new adjustments could push up bills even more for those who already benefit from higher out-of-contract rates.
“Out-of-contract rates are almost always much higher than contract prices, with costs increasing by around £20 a month, or even more in some circumstances,” said Catherine Hiley, a spokeswoman for Go.Compare broadband.
“For example, my own internet connection price will increase by around £50 a month if I don’t switch at the end of the contract. So forgetting to compare deals and switching providers when your contract comes to an end can be a very costly mistake.”
Beyond contract status, many users appear to be paying for broadband speeds that exceed their actual needs.
The data suggests that a notable share of customers could downgrade their plans without experiencing a significant change in performance.
For households that primarily use the Internet for basic tasks like browsing or streaming video, lower speed tiers may already provide sufficient performance.
At the same time, higher throughput packages remain more relevant for environments where multiple users engage in data-intensive activities simultaneously.
“While it’s tempting to go for the fastest speeds you can afford, you don’t need to shell out if you only use your internet for basic activities.”
End-of-contract customers retain the option to upgrade to new plans without penalties, providing a direct way to reduce monthly costs.
Committing to a new agreement before price increases take effect can prevent further increases while securing a lower rate for a set period of time.
Additional factors such as bundled services or promotional incentives can also influence the overall value of a package, although these vary between providers and contracts.
The broader picture suggests that rising costs aren’t due to a single factor: contract status, pricing structures, and user choices all contribute to the final bill.
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