Broadband is the only major UK household bill that has become cheaper over the past decade, according to new research from comparison website Broadband Genie. An ultrafast package with speeds of 100Mbps or more cost an average of £39.65 a month ten years ago; today, an equivalent deal costs around £26.30 a month – a drop of 43%. Despite this, millions of households could be paying more than they need to, as 28% of broadband customers are out of contract.
Broadband prices fall while other costs soar
Alex Tofts, strategist at Broadband Genie, said: “In a decade where everything else has skyrocketed, broadband is the single household expense where you can pay less today than you did ten years ago, without sacrificing speed or service.” The research highlights that the cheapest broadband deals have fallen by 10% over the same period, while ultrafast services have dropped by 43%.
To illustrate how dramatically everyday costs have changed, Broadband Genie’s figures show that a first-class stamp has risen by 181%, Netflix Standard by 86%, gas and electricity by 82%, a Big Mac by 80%, water by 69%, milk by 52%, rail fares by 41%, bread by 40%, a Freddo by 40%, and a pint of beer by 39%.
Millions out of contract could save £7-£9 a month
According to Ofcom’s research, average broadband prices fell in real terms last year, particularly for faster services. Across a range of different speeds, prices decreased by an average of 6%. However, the watchdog and regulator found that 28% of broadband customers were out of contract, and customers in contract spend between £7 and £9 a month less than out-of-contract customers on average.
Ofcom said this difference narrowed significantly last year, but most out-of-contract customers could still save money. The regulator advised households to talk to their current provider and sign up for a new deal to reduce their bills.
Switching could unlock immediate savings
Tofts added: “Your provider isn’t going to lower your bill out of goodwill, you have to take action. Switching takes minutes, your new provider handles the setup, and you pocket the savings immediately.” The research suggests that millions of households across the UK could reduce their monthly outgoings by simply reviewing their broadband contract and either renegotiating with their existing provider or switching to a cheaper deal.
