Amidst the financial challenges faced by many households, there is an opportunity for significant savings by negotiating or switching providers for mobile, broadband, and TV services. Which, a consumer rights magazine, recently released a report stating that customers who switched providers saved an average of £162 on TV and broadband. Notably, those who switched from Sky saved the most, with an average annual savings of £261. Customers who switched from Virgin Media saved £210 on average. The report was based on a survey of 5,000 individuals.
Natalie Hitchins, a representative from Which, emphasized the importance of taking action, stating, “Out-of-contract customers can avoid mid-contract price increases by either switching to a new provider or negotiating with their current one.” Hitchins also warned about potential price increases for customers still under contract, mentioning that some mobile or broadband contracts may experience price hikes of up to 18%.
Under current regulations, broadband providers can raise prices based on the Consumer Prices Index with an additional 3.9 percentage points. Meanwhile, mobile providers, like Virgin Mobile, may use the Retail Prices Index, which typically yields higher inflation rates. As the Retail Prices Index is projected to reach 14% in January, many mobile customers might face a nearly one-fifth increase in their bills this year.
Considering the ongoing cost of living crisis, Which is advocating for contract penalties to be waived if tariffs increase mid-contract. Additionally, Which believes that customers eligible for social tariff plans should be permitted to switch without incurring any exit fees.
The report also highlighted the potential savings achieved through negotiation rather than switching providers. Customers who haggled with their broadband and TV providers saved an average of £90 per year. Specifically, BT customers who negotiated reported an average annual saving of £123, and Sky customers saved £102 on average. For broadband-only customers, the average savings amounted to £92.
In the mobile sector, customers who switched providers enjoyed an average saving of £95. Among them, those who switched from EE saved an additional £184 per year, while ex-Vodafone customers saved an average of £150. Individuals who negotiated with their mobile providers typically saved £62.
Despite the potential for savings, a quarter of mobile customers admitted to not attempting to switch providers or negotiate when their contracts ended.
While no mid-contract price increases have been confirmed yet, KCOM, a provider, has already canceled its price hikes for 2022 due to the rising cost of living. Shell Energy Broadband postponed its 2022 price rises and implemented smaller increases than anticipated. Sky and Virgin Media do not utilize mid-contract price increases, although they occasionally make ad-hoc changes. When these changes occur, consumers have the right to switch providers without penalty.
Responses from companies mentioned in the report include the following:
- Virgin Media: No comment provided.
- BT: Declined to comment.
- Sky: Stated, “Our TV packages allow customers to add the entertainment that best suits their needs, and our customer service teams are available to assist in finding the right package.”
- Vodafone: Encouraged customers to review their plans at the end of each contract period to ensure they are on the most suitable deal for their changing needs. Assured that customers are notified of the best value deals available and provided support through various channels.
- Three: Claimed to have some of the lowest prices and unparalleled offerings in the market.
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