UK households are losing an average of £576 per year due to overpriced contracts they consider rip-offs, according to a new survey. The research, commissioned by Community Fibre and conducted via OnePoll, polled 2,000 adults and found that 38% are currently tied into agreements they do not believe offer good value for money.
Common Rip-Off Contracts Identified
Half of respondents reported that the price of their contracts had increased over time, while 26% said they receive poor value for the service they actually use. The most common contracts where people feel ripped off include TV packages (32%), energy contracts (26%), and mobile phone contracts (14%).
The survey also revealed that nearly one in four (23%) believe better alternatives are available for their current deals. Additionally, 26% are actively seeking cheaper deals for all or most of their contracts and subscriptions. However, with the average person subscribed to seven contracts overall, 9% struggle to keep track of them all.
Expert Advice on Managing Contracts
Personal finance expert Peter Komolafe commented: “With many different long-term contracts on the go, small price rises can add up, leaving people paying more than they realise. That’s why it’s so important to regularly review, track and monitor your outgoings, so you stay in control of what you’re paying for. But most importantly, check you have the best deal and are only paying for what you need.”
Nearly half of those surveyed (48%) expressed a preference for shorter, more flexible deals, while 41% are exploring combining services to save money. When asked about mobile phone contracts specifically, 27% wanted to switch to a cheaper deal, and getting the best price was the top priority for six in 10 people. Another 19% would keep their current handset and move to a better contract, and 15% are looking for shorter, more flexible options.
Forgotten Subscriptions Cost Bill Payers
More than a quarter of respondents (26%) admitted to completely forgetting about a paid subscription and continuing to pay each month without using it. Video services (26%), music subscriptions (15%), and software (13%) are the most neglected, costing bill payers an estimated £54 before they cancel.
Peter Komolafe added: “I spoke to lots of people and found many are confused or frustrated by their mobile phone contract, but happy with their handset. Switching to an eSIM like this is a straightforward way to secure unlimited data, calls and texts for a fixed monthly price, with the added flexibility of a rolling contract.”
