A new Which? Report shows that most broadband providers are NOT rewarding loyal customers with the best tariffs – and that older people are overpaying the most. What’s more, switching could also significantly speed up your broadband
When your broadband supply came up for renewal last, did you check out that your provider was still offering the best deal?
Which? has found that almost three quarters (72%) of the broadband customers it surveyed had stuck with their provider for more than two years – and that many were overpaying as a direct result.
Further, they calculate that not haggling or shopping around is costing the average user a whopping £220 a year.
Even more telling is the fact that, according to Broadband Genie, customers aged 55 and older are overpaying the most.
Only one provider came out of the survey with its reputation unblemished: Utility Warehouse, which DOES offer loyal customers the best deals available.
So why is this happening?
It’s well known that broadband providers win over new customers by offering enticing deals – but unless you renegotiate at the end of the contract you are likely to revert to a higher monthly charge.
For instance, the average annual broadband bill paid by BT customers after their initial deal ran out was £540 a year. Customers who haggled with them for a better deal paid just £372 for customers while new customers still won out – paying a mere £320.
Customers who went back to Virgin Media get a better deal, say Which?, paid an average £384 a year, saving themselves £156 in the process. New TalkTalk customers, meanwhile, saved £84 a year less than their loyal counterparts.
Alex Neill, MD of Which?, is advising users to switch providers if they want a good deal. “The majority of users have been with their provider for over five years, 41% have never switched broadband and around half have never tried to negotiate with their broadband provider.
“Broadband customers will be appalled that not only could they be paying through the nose simply for being loyal to their provider but that they could, in some cases, also get a much faster internet connection for a fraction of the price that they are currently paying,” he said.
How to get more for less…
Meanwhile, Ofgem say that half of British homes could switch to a FASTER broadband service if they looked around… as well as get a better financial deal.
Click onto https://www.boostyourbroadband.com/
… and you’ll be guided through the three simple steps to find out what broadband provision is available locally – and how to shop around for a better deal. They also have a handy downloadable reference guide in there to take you through the process.
So, if you want to start saving money in the New Year, this is a great place to start…
You can also find out how well YOU are prepared for retirement by feeding in your assets and outgoings into a RetireEasy LifePlan. That will tell you just how much you can comfortably spend in retirement – and whether or not you need to save more or retire later.