A study has revealed that UK broadband customers can face steep price increases of up to 82% when their contract ends.
Recent changes to UK advertising regulations require internet service providers (ISPs) to advertise realistic estimated speeds instead of vague “up to” claims. While this change has improved transparency around speeds, pricing after contract expiry remains unclear for many customers.
Richard Neudegg, head of regulation at uSwitch, warns:
“There’s currently no requirement for any warning when broadband contracts are about to expire, so customers can very quickly find themselves paying increased charges before they have time to react. It’s important to warn consumers that they are moving onto these higher rates. The majority of broadband customers say they’d shop around if they knew their deal was coming to an end.”
Most customers accept promotional pricing that lasts for either 12 or 18 months. If providers raise prices during an active contract period, a recent legal change allows customers to leave the contract early without penalty. However, many consumers still overlook the end date of their promotional deal and remain on standard tariffs by default.
A fresh analysis of home broadband packages by uSwitch found that subscribers to some of the UK’s largest ISPs — including BT, Sky Broadband, TalkTalk, EE, Plusnet and Virgin Media — could face substantial increases of up to 82% (equivalent to around £246 per year) if they remain with their existing provider after the promotional period ends.
Because users often forget to check contract end dates or are simply satisfied with the service, unexpected higher bills can come as a shock when they review their accounts. This “bill shock” highlights the gap in customer awareness about post-contract pricing.
Ofcom, the telecoms regulator, has proposed requiring providers to notify customers as they approach the end of their minimum contract term to prevent consumers from being moved onto more expensive plans without clear notice.
Neudegg adds: “Ofcom’s consultation on how to implement these notifications must ensure that crucial information doesn’t get buried in the small print of bills, or isn’t shown at all. In order to be effective, these end-of-term warnings need to be clear and concise, and implemented in a timely fashion.”
There is a case for going further than Ofcom’s current proposal by obliging providers to prominently display their post-contract pricing up front, so customers can compare true long-term costs before signing up.
Do you think ISPs should be required to clearly display post-contract prices? Share your views in the comments.
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