Broadband costs set to rise for millions of out-of-contract customers | Daily Reports Online
- Millions of broadband users are paying more due to expired contracts
- Around 4% of users do not know their contract status
- Out-of-contract rates often increase by around £20 or more monthly
Many UK broadband users are currently paying more than necessary, largely because they remain on out-of-contract plans after their initial agreements expire.
New research from Go.Compare claims around 5.9 million broadband users are out of contract and could be paying higher rates, with the total potentially costing consumers up to £118 million every month.
With providers’ annual price increases set to take effect within days, the additional costs across all customers could reach £1 billion, 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
About 11% of UK homes are out of contract, and approximately 4% of users are unsure of their current contract status.
This lack of awareness means some households continue paying higher standard rates without actively choosing to do so, even when better broadband deals are available.
The timing of this situation adds further pressure, and the new adjustments could push bills even higher for those already on more expensive out-of-contract rates.
“Out-of-contract rates are almost always much higher than contract prices, with costs going up by around £20 per month or even higher in some circumstances,” said Catherine Hiley, spokesperson at Go.Compare broadband.
“For example, my own broadband price will rise by around £50 a month if I don’t switch at the end of the contract. So forgetting to compare deals and switch providers when your contract is up can be a very costly error.”
Beyond contract status, many users appear to be paying for broadband speeds that exceed their actual needs.
Data suggests that a noticeable share of customers could downgrade their packages without experiencing any meaningful change in performance.
For households that primarily use the internet for basic tasks such as browsing or video streaming, lower speed tiers may already provide sufficient performance.
At the same time, higher-speed packages remain more relevant for environments with multiple users engaging in data-intensive activities simultaneously.
“While it’s tempting to go for the fastest speeds you can afford, there’s no need to fork out if you only use your internet for basic activities.”
Customers who are out of contract retain the flexibility to move to new deals without penalties, which offers a direct route to reducing monthly costs.
Locking into a new agreement before price increases take effect can prevent further rises while securing a lower rate for a fixed period.
Additional factors such as bundled services or promotional incentives may also influence the overall value of a package, although these 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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