Citizens Advice, a UK network of independent charities, reports that customers on the cheapest basic broadband deals face an average annual price increase of £113 once their initial contract ends — and many are unaware this will happen.
The charity’s research found that more than a third (35%) of broadband users do not realise their bills may rise if they remain on the same contract after the fixed-price period finishes. This lack of awareness leaves many households vulnerable to unexpected higher costs.
Citizens Advice warns that customers who stay on the same broadband contract for about four years typically incur what the organisation describes as a “loyalty penalty.” Instead of being rewarded for long-term custom, those customers see their monthly bills jump when their promotional rate expires. The charity calls on providers to make post-contract pricing much clearer so consumers can avoid surprise increases.
Analyzing the cheapest basic broadband offers from the five largest suppliers — including providers such as BT, Virgin Media, TalkTalk, Sky and EE — Citizens Advice found average price rises of 43% at the end of fixed-term deals. That equates to an additional £9.45 per month on average, or roughly £113 extra per year for a typical household that remains on the same plan.
To help customers avoid these loyalty penalties, Citizens Advice wants broadband companies to present clear, up-front information about how much a service will cost after the initial deal ends. The charity recommends including that information prominently in advertising and at the point of sale rather than burying it in lengthy terms and conditions. It also suggests sending timely notifications, such as text messages, when the fixed-price period is about to expire, and calls for stronger safeguards for more vulnerable customers.
The charity’s survey of more than 3,000 consumers highlights that certain groups are disproportionately affected. Customers aged 65 or over are more than twice as likely as those under 65 to have remained on the same broadband contract for more than ten years. Similarly, lower-income households are almost three times as likely as higher earners to be stuck in the same contract for a decade or longer. These patterns suggest long-standing customers and people on limited incomes face a greater risk of paying higher bills due to loyalty penalties.
The findings underline the need for clearer communication and better protections across the broadband market. When customers sign up for a promotional rate, they should be able to see exactly what the price will revert to at the end of the offer and receive straightforward reminders before any increase takes effect. More transparent pricing and proactive notifications would allow households to compare options, switch providers, or renegotiate terms to avoid unnecessary extra costs.
Citizens Advice’s recommendations focus on three practical steps: ensuring post-contract prices are clearly displayed in all advertising and at sign-up; providing timely reminders as fixed deals near their end; and offering additional support for older and lower-income customers who are more likely to remain on long-standing contracts. Implementing these measures would help reduce the unfair financial burden on loyal customers and promote a fairer broadband market.
By calling for clearer disclosure and better consumer protection, Citizens Advice aims to prevent households from being unintentionally penalised for remaining on their broadband plans. Greater transparency would empower consumers to make informed choices, compare deals effectively, and avoid paying significantly more once their initial contracts expire.