How to Save Money on Broadband Bills: 12 Proven Strategies
Comprehensive guide to reducing your broadband costs in the UK. From switching providers to negotiating better deals, discover practical ways to cut your internet bills without compromising on quality.
Table of Contents
The average UK household spends over £400 per year on broadband, yet many people pay significantly more than necessary. Whether you're overpaying due to the "loyalty penalty," paying for speeds you don't need, or simply haven't shopped around recently, there are numerous ways to reduce your broadband bills without sacrificing performance.
This comprehensive guide reveals 12 proven strategies to save money on your broadband, from simple tactics like negotiating with your provider to lesser-known options like social tariffs. Follow these tips and you could save £100-300 per year on your internet costs.
Quick Savings Snapshot
1. Understand the Loyalty Penalty
The "loyalty penalty" is the practice where existing customers pay more than new customers for the same service. Once your initial contract ends (typically after 12-24 months), you're automatically moved to a more expensive standard tariff.
How Much the Loyalty Penalty Costs You
How to Avoid the Loyalty Penalty
- Set a calendar reminder 2-3 months before your contract ends
- Start shopping for new deals at least 30 days before your contract expires
- Use your contract end date as leverage when negotiating with your current provider
- Never let yourself roll onto a standard tariff - always have your next deal lined up
2. Switch Providers Regularly
Switching broadband providers is the single most effective way to save money. New customer deals are almost always significantly cheaper than staying with your current provider.
Switching is Easier Than You Think
Many people avoid switching because they think it's complicated, but the process is straightforward:
- Use our comparison tool to find the best deals at your address
- Sign up with your new provider online
- Your new provider handles most of the switching process (using the One Touch Switch system)
- You'll typically have a seamless transition with minimal downtime (often just a few hours)
- Your old contract is automatically cancelled
One Touch Switch Protection
As of 2023, the One Touch Switch system means you only need to contact your new provider - they handle cancelling your old service. You're protected by regulations that ensure switching happens smoothly, usually within 1-2 weeks of your chosen switch date.
Best Times to Switch
- Black Friday (November): Some of the year's best broadband deals
- January: Providers compete heavily for new year customers
- When your contract ends: No early exit fees to pay
- During provider promotions: Watch for gift card offers, cashback, or free setup
3. Negotiate with Your Current Provider
If you'd prefer to stay with your current provider (perhaps for bundled services or because you're satisfied with the service), you can often negotiate a better deal.
How to Negotiate Successfully
Step 1: Do Your Research
Before calling, research competitor prices for equivalent packages. Have specific prices ready to mention. Example: "Plusnet is offering 67Mbps for £22/month, but I'm paying you £35 for the same speed."
Step 2: Call Retentions Department
Say you're thinking of leaving due to price. You'll often be transferred to a "retentions" or "loyalty" team who have authority to offer discounts. Be polite but firm about considering switching.
Step 3: Be Prepared to Walk Away
If they won't match competitor prices, be prepared to actually switch. Providers know when you're bluffing. Sometimes they'll call back with a better offer after you've given notice.
What to Ask For
- A price match of competitor deals you've found
- A discount on your current package (aim for 20-30% off)
- Free upgrades to faster speeds at your current price
- Removal of setup fees or equipment charges
- Shorter contract terms with the discounted price
4. Check Social Tariff Eligibility
Social tariffs are discounted broadband packages for households receiving certain benefits. These can save £200+ per year but remain severely underutilized - only 5% of eligible households take advantage of them.
Who Qualifies?
You may be eligible if anyone in your household receives:
- Universal Credit
- Pension Credit
- Employment and Support Allowance (ESA)
- Jobseeker's Allowance (JSA)
- Income Support
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
Social Tariff Examples
BT Home Essentials
FTTC broadband with no setup fee, no credit check, and no mid-contract price rises.
Community Fibre Essentials
Full fibre broadband in London at an incredible price for eligible households.
Virgin Media Essential Broadband
Basic broadband for light usage, available to Virgin Media customers on eligible benefits.
Don't Be Afraid to Ask
Many eligible households don't know social tariffs exist. If you receive qualifying benefits, contact providers directly to ask about their social tariff offerings. They're legally required to make these tariffs available but aren't always proactive about advertising them.
5. Pay for the Speed You Actually Need
Many households pay for gigabit broadband when a 67Mbps connection would serve their needs perfectly well. Understanding your actual usage can save £10-20 per month.
How Much Speed Do You Really Need?
1-2 People, Light Usage
Web browsing, email, SD streaming
3-4 People, Moderate Usage
HD streaming, video calls, gaming
5+ People or Heavy Usage
4K streaming, large downloads, multiple gamers
When Faster is Worth It
Upgrade to faster speeds (300Mbps+) if you regularly upload large files, work from home with frequent video calls, or are a content creator. For most households, anything above 150Mbps is overkill unless you have 5+ people all streaming 4K simultaneously.
6. Remove Unnecessary Add-ons
Many broadband packages include optional extras that inflate your bill. Review your package and remove anything you're not actively using.
Common Add-ons to Review
- Landline phone (£5-8/month): If you never use your landline, ask for broadband-only packages. Some providers still bundle this automatically
- Whole-home WiFi/mesh systems (£5-10/month): Often cheaper to buy your own mesh system outright than rent from your provider. See our mesh WiFi guide
- Static IP address (£3-5/month): Only necessary for specific business use cases or home servers
- Router insurance/care plans (£3-7/month): Providers usually replace faulty equipment anyway, making this often redundant
- Virus protection (£3-6/month): Free alternatives like Windows Defender are usually sufficient for home users
Removing 2-3 unnecessary add-ons can save £10-25 per month (£120-300 per year).
7. Time Your Switch for Best Deals
Broadband deal quality fluctuates throughout the year. Switching at the right time can secure better pricing or valuable incentives.
Best Times for Broadband Deals
Black Friday / Cyber Monday (Late November)
Typically the best deals of the year, with providers offering aggressive discounts, gift cards (£50-150), and free setup. Start watching deals from mid-November.
January Sales
Second-best time for deals as providers compete for new year customers. Often includes discounted first-year pricing.
Quarter Ends (March, June, September, December)
Providers push to meet quarterly targets, sometimes offering better deals to close sales. Worth checking in the final week of each quarter.
8. Consider Bundles Carefully
Bundling broadband with TV, mobile, or phone services can save money, but only if you actually use all the services. Don't assume bundles are automatically cheaper.
When Bundles Make Sense
- You already pay separately for mobile and broadband with the same provider
- You're offered a genuine discount (10%+ off) for bundling
- You want premium TV channels and the bundle is cheaper than separate subscriptions
- You value the convenience of a single bill for multiple services
When to Avoid Bundles
- You're paying for TV channels you never watch
- You can get better individual deals from specialist providers
- The bundle locks you into a longer contract than you want
- You primarily use streaming services (Netflix, Disney+) rather than traditional TV
Do the Math
Always calculate the true cost:
9. Choose the Right Contract Length
Contract length affects both your monthly price and flexibility. Understanding the trade-offs helps you make smarter choices.
12-Month Contracts
Pros:
- Maximum flexibility to switch providers annually
- You can take advantage of new deals sooner
- Less risk if you move house
Cons:
- Typically £2-5 more per month than 18-24 month contracts
- Need to actively search for deals every year
18-24 Month Contracts
Pros:
- Lower monthly cost (best value if you're staying put)
- Price locked in for longer, protecting against inflation
- Set-and-forget convenience
Cons:
- Higher early exit fees if you need to leave
- You might miss out on better deals that emerge
- Problems if you move to an address not covered by your provider
Our Recommendation
Choose 12-month contracts if you like flexibility and don't mind switching providers annually. Opt for 18-24 months only if you're confident you won't move and the monthly savings are significant (£5+). Never choose contracts longer than 24 months - the savings are rarely worth the lock-in.
10. Use Cashback and Reward Sites
Cashback sites offer rebates when you sign up for broadband through their links. This can add £30-100 to your savings, though you need to follow the process carefully.
Popular Cashback Sites for Broadband
- TopCashback: Often offers £50-100 cashback for major providers
- Quidco: Similar to TopCashback with competitive rates
- Compare the Market: Meerkat Rewards include 2-for-1 cinema tickets
Important Cashback Caveats
Cashback Pitfalls to Avoid
- You must click through from the cashback site and complete signup in one session
- Cashback can take 3-6 months to be confirmed and paid
- Using ad blockers or discount codes from other sources may invalidate claims
- Sometimes the base deal is better without cashback - always compare total costs
11. Look for Price Guarantees
Some providers offer price guarantees that protect you from mid-contract price rises, which have become increasingly common due to inflation.
What to Watch Out For
Many providers include clauses allowing annual price increases based on CPI or RPI inflation plus an additional percentage (e.g., "CPI + 3.9%"). During high inflation periods, this can add £5-10 to your monthly bill mid-contract.
Providers with Better Price Guarantees
- Plusnet: Transparent pricing with clear commitments on price rises
- Some smaller providers: Fixed pricing for the entire contract term
- Social tariffs: Usually protected from mid-contract increases
Always read the fine print about price increases before signing up. A deal that looks great at £25/month can become less appealing if it jumps to £32/month halfway through your contract.
12. Avoid High Setup Fees
Setup fees (also called activation fees or installation charges) can range from £0 to £60. These significantly affect the true cost of your broadband over the contract term.
Calculating True Monthly Cost
Example Comparison
When Setup Fees Don't Matter
- Many providers waive setup fees during promotional periods (Black Friday, etc.)
- Full fibre (FTTP) installation may have higher one-time costs but is worth it for the technology upgrade
- If you're planning a 24-month contract, setup fees are amortized over longer, reducing their impact
Your Money-Saving Action Plan
- 1.Check if you qualify for social tariffs (potential £200+ annual savings)
- 2.Set a reminder for 2 months before your contract ends
- 3.Calculate the speed you actually need - don't overpay for gigabit if 67Mbps is sufficient
- 4.Remove unused add-ons like landline rental, mesh WiFi, and router insurance
- 5.Compare deals using our tool and either switch or use quotes to negotiate
- 6.Factor in setup fees when comparing total costs
Frequently Asked Questions
How often should I switch broadband providers?
Ideally, review your broadband deal every 12 months when your initial contract ends. This ensures you're always on a competitive rate and avoiding the loyalty penalty. Set a calendar reminder for 2-3 months before your contract expires.
Will switching providers cause downtime?
Modern switching using the One Touch Switch system typically involves minimal downtime (a few hours at most). Your new provider coordinates with your old one to ensure a smooth transition. Some switches have zero downtime.
Can I negotiate a better deal mid-contract?
Yes, but your leverage is limited mid-contract. Your best negotiating power comes when your contract is ending. However, if you're experiencing service issues or a competitor offers significantly better deals, it's worth calling to negotiate.
Are social tariffs slower or lower quality?
No. Social tariffs use exactly the same infrastructure and provide the same service quality as standard packages. BT Home Essentials, for example, offers 67Mbps - the same speed as their standard fibre package, just at a discounted price for eligible households.
What happens if I move house during my contract?
Most providers will transfer your service to your new address if they cover that area. If they don't service your new address, you can usually exit the contract without penalty. Always check your provider's terms regarding home moves.