MILLIONS of households across the UK are overpaying for their broadband due to a common mistake.
New research carried out by Go Compare has found that 9.5 million households are paying for higher broadband speeds than necessary.
The majority of Brits spend between £25 and £29 per month on broadband for top-end broadband speeds, the price comparison site’s survey found.
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Just over a third or 34% of these users are overpaying on their packages with around £53 million collectively spent each month on unused broadband speeds.
This translates to a jaw-dropping £637 million over the course of a year.
The comparison site says that those who overpay spend an average of £5.58 per month more than they need to on their broadband.
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This means £66.96 is wasted over 12 months – enough to cover a streamer’s standard Netflix subscription for a year.
Smaller households typically end up overpaying the most as they are more likely to only need speeds of up to 15Mpbs but only 4% of this group actually pay for such speeds.
One in 10 of these users told Go Compare that they pay for some of the fastest speeds at over 150Mbps – despite the slowest speeds being enough for their usage.
As a result, they overspend by £9 per month, equating to £113 being wasted every year.
NEED FOR SPEED
So how do you know what broadband speed is right for you?
For smaller households with just one or two people who have simple web browsing needs, basic internet usage is required at between 10 and 15Mbps.
Small households that work from home and regularly stream content will require slightly higher broadband speeds at between 15 and 50 Mbps.
Gamers who want a glitch-free, 4K video streaming experience and who live in small households will need 50 to 100Mbps.
Meanwhile, larger households with multiple users such as a family of four, student accommodation, or places with excessive web users, will need over 100Mbps.
COST-CUTTING TIPS
Once you know the speed needed, there are two cost-cutting hacks to help you get the best deal.
Check for social tariffs
SOCIAL tariffs are available to households on certain benefits, and usually cost substantially less than a firm’s standard broadband packages.
They’re often available to those on Universal Credit, income support or disability allowance.
Providers offer packages with different speeds and prices, and not all are available across the UK.
Prices range from £12 to £25 a month.
Around 4.2million households are eligible for these cheaper tariffs, but only 55,000 are making use of them.
How you apply for a social tariff varies depending on which supplier you sign up with.
It’s important to shop around when you’re looking for a new broadband deal, as other internet packages could be more suited to your needs.
The regulator, Ofcom, has a list on its website of all the social tariffs currently on offer.
Visit www.ofcom.org.uk/phones-telecoms-and-internet/advice-for-consumers/costs-and-billing/social-tariffs#full-list-of-available-tariffs to view the full list.
It is also worth comparing deals on sites such as MoneySupermarket and GoCompare to find the best deal for your budget.
And be aware that if you’re already mid-way through a contract, you might have to pay an exit fee to leave your contract early.
First, you will need to hunt around for the best deals available which can be easily done on price comparison sites like Go Compare, MoneySuperMarket and Uswitch.
Here you can customise your search based on your desired broadband speed, provider and price.
This is when the second cost-cutting hack could come in.
Based on the results of your comparison search, if there is a good deal but it is with another provider, you can try and haggle a deal with your current broadband company.
They might be able to match, or even beat, the deals you’ve seen elsewhere.
You can still make significant savings by renewing your contract rather than accepting the tariff you’re given after your deal.
Read more on the Scottish Sun
Knowing what other offers are on the market can help you to make a case for yourself to your provider.
Remember, by spending as little as five minutes on the phone to your provider you could save hundreds of pounds.
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