Yahoo Finance Haggle with your broadband provider and save £250, households urged
Millions of squeezed households have been urged to save more than £250 by haggling or switching away from their mobile, broadband and TV providers.
A report by the consumer rights magazine Which found TV and broadband customers saved £162 by switching providers. Those who moved away from Sky earned the biggest savings at an average of £261 a year. Customers of Virgin Media saved £210 by going to a rival. The Which analysis was based on a survey of 5,000 people.
Natalie Hitchins, of Which, said: “While our findings show that out of contract customers can avoid mid-contract price rises by switching to a new provider or haggling with their current one, those still signed up to mobile or broadband contracts could be hit with price increases that could be as high as 18pc.”
Under current rules, broadband providers are allowed to use the Consumer Prices Index measure of inflation as a basis for price rises, plus an extra three 3.9 percentage points. Some mobile providers, such as Virgin Mobile, use the Retail Prices Index measure of inflation, which is typically higher.
With RPI forecast to reach 14pc in January, it could mean that thousands of mobile customers will see their bills climb by almost a fifth this year.
Ms Hitchins added: “Given the unrelenting cost of living crisis, Which is calling for all providers to allow all customers to exit their contracts penalty-free if their tariff does go up mid-contract and that anyone eligible for a social tariff should be allowed to move to one without facing exit fees.”
The Which report found that customers who did not switch but instead haggled with their broadband and TV provider saved an average of £90 a year. BT customers who haggled reported an average saving of £123 a year, while Sky customers saved £102. The average saving for broadband-only customers was £92.
For mobile customers, the average saving by switching was £95, with those who turned away from EE pocketing an extra £184 a year, and ex-Vodafone customers saving £150 on average. Those who haggled with their mobile providers typically saved £62.
Despite potential savings, a quarter of mobile customers said they had not attempted to switch providers or negotiate when they reached the end of their contract.
No mid-contract price rises have been confirmed yet. One provider KCOM cancelled its price rises for 2022 due to the rising cost of living. Shell Energy Broadband postponed its 2022 price rises, and then uprated them by a lower amount than expected. Sky and Virgin Media do not use mid-contract price rises, but make changes on an ad-hoc basis, Which said. However, when this occurs, consumers have the right to switch without penalty.
Virgin Media was approached for comment. BT declined to comment. A spokesman for Sky said: “Our TV packages enable customers to add the entertainment that best suits their needs and our customer service teams are on hand to find the right package for them.”
A spokesman for Vodafone said: “We encourage everyone to review their plan at the end of any contract so they can make sure they’re on the right deal for their needs – which often change over time. At the end of every contract period we notify our customers of the best value deals available, and can also support them in finding this online, over the phone and in stores.”
A spokesman for Three said: “Three has some of the lowest prices and unmatched propositions on the market.”
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