Millions of UK households are overpaying for broadband, even by over £280 a year, simply because they’re out of contract.
How much we pay for broadband is influenced by many factors; which provider, the speed of the deal and how long you have been with your provider. Broadband deals typically come in 24-month contracts. After this, customers are moved to a rolling monthly contract, usually at a significantly higher rate (also known as the ‘loyalty tax’).
In the UK, 8.8 million customers are out of contract and are free to switch to a cheaper deal. But which areas are the hardest hit? We interviewed 3,997 broadband bill payers and compared what they pay to a market-leading deal to find who is overpaying the most.
Wolverhampton overspends the most on broadband
That’s right! The third-largest city in the Midlands overspends the most on broadband.
On average, broadband customers overspend £281.76 a year on broadband.
Top ten cities which overpay the most on broadband
| Rank | City | Annual overspend |
|---|---|---|
| 1 | Wolverhampton | £292.56 |
| 2 | Wrexham | £280.32 |
| 3 | Liverpool | £278.88 |
| 4 | Gloucester | £276.36 |
| 5 | Exeter | £276.24 |
| 6 | Birmingham | £269.76 |
| 7 | Manchester | £269.16 |
| 8 | Cambridge | £258.36 |
| 9 | Hull | £267.24 |
| 10 | Leeds | £263.52 |
Newport overspends the least on broadband
Broadband subscribers in the Welsh city which sits on the River Usk typically pay £24.40, almost half as much as customers in Wolverhampton.
This places the city top in our study. However, there is room for improvement. Broadband bill payers could further reduce their annual costs by £70.20 by switching to a cheaper deal.
Top ten cities that overpay the least for broadband
| Rank | City | Annual overspend |
|---|---|---|
| 1 | Newport | £70.20 |
| 2 | Lincoln |
£123.96 |
| 3 | Derby |
£127.08 |
| 4 | Glasgow |
£184.44 |
| 5 | Nottingham |
£190.56 |
| 6 | Milton Keynes |
£205.92 |
| 7 | London |
£209.52 |
| 8 | Norwich |
£209.52 |
| 9 | Chester | £212.88 |
| 10 | Plymouth | £215.04 |
Best and worst areas for broadband overspend: full results
Curious to know where your area ranks for broadband overspend? Click on the dropdown below to reveal the full results of our study.
Which provider offers the best value for money?
When it comes to finding which provider offers the best value for money, we asked their customers. In our Broadband Awards, we polled almost 4,000 broadband bill payers to rate their broadband provider for value for money. The results are shown below.
| Rank | Provider | Score |
|---|---|---|
| 1 | Vodafone | 75% |
| 2 | Zen Internet | 73% |
| 3 | Plusnet | 73% |
| 4 | Direct Save | 72% |
| 5 | Now Broadband | 71% |
| 6 | Three | 70% |
| 7 | Sky | 68% |
| 8 | TalkTalk | 67% |
| 9 | BT | 64% |
| 10 | Virgin Media | 64% |
How to get a better deal on your broadband
We know it may sound daunting to find a new broadband deal, but it’s actually simple, On average, broadband customers overspend £183.60 and over the Black Friday period, this can top £230. Ready to find a new broadband deal? Head over to our Black Friday page to see this year's best broadband offers.
Here is a quick summary on how to switch your broadband deal to something cheaper.
1. Find out your current contract end date
If you switched or renewed your broadband deal in the past 24 months, you may need to wait or pay an early-exit fee. However, more providers are offering early switch credits to cover the cost of your early-exit fee. For more information, head over to our switching credits guide.
2. Search for a deal that is perfect for you
No two broadband deals are the same, the main difference will be the speed you receive. Typically, the faster the speed, the higher the price. So only pay for what you need. You can get more help understanding speed requirements for your home in our Ultimate Guide to Broadband Speed.
3. Sign up with your new provider
Once you’ve found your perfect deal, complete the checkout process with your chosen provider. You’ll be given (or can choose) a date for your switch.
4. Sit back and relax
In most cases, your new provider will do all the legwork for you and cancel your existing contract when they set you up on your new deal.
To start your broadband today or to browse what deals are available in your area, enter your postcode into our broadband deal checker.
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Methodology
Broadband Genie interviewed 3,997 broadband bill payers over a 4-month period. Responses were collected through polling company OnePoll (3,200 responses) and an online survey through Broadband Genie (797 responses).
City overspend was calculated by comparing the average monthly subscription cost of an out-of-contract customer to the cheapest broadband deal on the market above 100Mb download speed, multiplied over 12 months. Locations were ranked in descending order of average annual overspend.
To qualify for the study, locations were required to have a minimum of 10 bill payer interviews.