‘I’m a money expert – here are my step-by-step tips to cut your broadband bill’ | Personal Finance | Finance

While broadband bills have risen as much as 8.8 percent for some customers this month, there are ways people can slash costs – sometimes instantly.

Broadband providers tie their prices to the Consumer Price Index (CPI) inflation measurement and while the CPI rate remains high, broadband companies have increased their prices this month to match.

BT, Plusnet and EE raised broadband costs by as much as 7.9 percent this month, and Sky increased its rate by eight percent.

Meanwhile, Virgin Media O2 raised rates by a staggering 8.8. percent – even for those still in the middle of a fixed-price contract.

With this in mind, Liz Hunter, director at Money Expert, shared a step-by-step process to make significant savings on their bills.

Check if you’re out of contract

Firstly, Ms Hunter suggested people check the terms of their contracts to find out if they’re still in one. People can usually find this out by logging in online or checking the initial paperwork that was sent through.

Ms Hunter said: “If you’re out of contract, you’re in luck. This means that the agreement you made with your provider has now ended and the terms no longer apply. Even better, it means you’re free to switch to a better value deal, with no exit fees.”

If people find they’re still in contract, they can still change providers, but they may be subject to an early cancellation fee.

Ms Hunter said: “The good news? If you don’t want to pay the fee, there are still some tips and tricks you can use to lower your bill with your current provider.”

Think about what speed you really need

Secondly, Ms Hunter urged people to consider how they use the internet daily.

Suppose a person is the only internet user in your home and only needs to use the internet for casual browsing, sending emails and watching low-resolution videos. In that case, Ms Hunter said a speed of 30MBps or under is “more than enough”.

However, she noted: “If you work from home, use devices for entertainment like gaming and have multiple devices in use at the same time, it’s worth considering faster speeds – but this does come at a cost.

“For example, a 24-month, 36Mbps contract with BT will currently set you back around £28.99 per month. If you were to upgrade to an ultra-fast 500Mbps speed, this would increase to £49.99 per month. Throughout the two-year contract, that’s over £500 more.

“If you’re in contract and decide you could move to a lower speed, you can use this as leverage to haggle with your current provider.”

For those out of contract, being informed means they can avoid paying for more speed than they need when securing a new deal. Ms Hunter added: “Remember to double-check what speeds are available in your area using Ofcom’s Broadband Checker.”

Consider bundling up

Most providers offer bundled packages – which could include broadband, TV and mobile – at a lower overall cost than buying each service separately.

Ms Hunter said: “This can be a good way to snag instant savings, so it’s a good idea to weigh up the potential cost of both during your search.”

However, she noted: “Don’t let your provider fool you into fancy bundles and talk you into paying for a service you don’t need. If you only watch free channels and use minimal mobile data, a huge TV and mobile package might not be the best deal and could cost you more long-term.

“Be aware that bundling up can also make it harder – and more of a hassle – to cancel, change providers or negotiate any mid-contract price rises.”

Use comparison sites to benchmark the best deals

Now that people are aware of their required internet speeds and their openness to bundle deals, Ms Hunter suggests visiting a comparison site to determine which provider can offer the most competitive price.

Ms Hunter said: “Don’t make any moves yet, though. For now, make a note of the deals that seem the best value to you. Make sure to include the provider, contract length, speed, monthly cost, set-up cost and any freebies or incentives.”

Start haggling

Equipped with a list of providers and the deals they can offer, people should next call their provider to start the haggling process.

Ms Hunter said: “Customers willing to phone up and haggle with their broadband provider save an average of seven percent – almost enough to mitigate the impact of April’s price increase – according to Which.

“If you’re out of contract or about to come out of contract, see if they can match the deals you’ve found online – or, even better, offer a lower price. If you’re still in contract, use your research to negotiate a better deal.”

For example, people might ask to cancel services they don’t use, such as a TV package or landline, or ask to add services, such as a mobile or TV package to secure a discount. They may also ask to reduce the speed.

Ms Hunter added: “Don’t forget to mention the deals you find online as leverage to secure a discount, especially if you found significantly cheaper deals from other providers. If you’ve been a customer for years, let them know. Customer loyalty really can work in your favour.”

If you’re still not satisfied, threaten to cancel

If a provider refuses to negotiate, Ms Hunter said threatening to cancel can be a good move to make. However, she noted: “If you’re still tied into a lengthy contract, make sure to find out the exit fee before you do so.

“If you’re out of contract – or mid-contract, but comfortable paying the potential exit penalty – you’re in a much stronger position. Let your provider know that, regrettably, you’re considering leaving.”

This typically means people will be passed to the ‘customer retention’ team, who’re often able to offer much stronger discounts and better deals to tempt them to stay. If they can’t, Ms Hunter noted: “It could be time to leave and secure one of the better deals you found online.”

Check if you’re eligible for a social tariff

Those who are seriously struggling to keep up with their broadband bills could be eligible for social tariff. These are discounted broadband deals – sometimes as low as £10 per month – to help those on low incomes stay connected.

Ms Hunter said: “You’ll typically be eligible if you’re receiving benefits such as Universal Credit, Pension Credit or Jobseeker’s Allowance.

“If you think you might be eligible, call up your provider to see if they offer a social tariff and ask to move. If they don’t offer one, you can switch to one that does. In these instances, your provider might let you leave your current contract without paying an exit fee.”