Four million households paying too much for broadband | AdminBox

Four million households paying too much for broadband

Four million households paying too much for broadband

Ofcom revealed this week that four million households are paying too much for their broadband. The news comes after a review of pricing across loyal broadband customers.

Across the UK, some 94% of UK households are able to get fibre broadband - whilst less than half of UK households have signed up. Ofcom found that four million households with slower, basic broadband are now outside their initial contract period and are continuing to pay that same rate to their broadband provider, without knowing that they can switch to a cheaper rate with faster broadband speeds. 

Ofcom has now announced plans to try to remove the 'loyalty' penalty, which penalises those customers that either simply auto-renew or who are not informed that their initial contract has ended.

Ofcom's plans include forcing companies to alert customers about the best deal they can achieve, after their initial contract comes to an end. Companies should also inform longstanding customers each year about the best deal they can get. 

This Is Money published research this week highlighting that customers are paying up to £273 too much for broadband each year. BT was named as having the greatest loyalty penalty. The research also highlighted that AA customers paid a breakdown cover loyalty penalty of £133, while RAC customers paid £110 more on average than the best price for new joiners.

Citizens Advice said that longstanding customers are widely overcharged and that it believed British consumers were being overcharged by a total of £4.1billion a year. 


  • 17 Dec 2018
  • By: Paul Chapman