Are 60 per cent of UK broadband customers really out of contract?

A survey published earlier this summer concluded that 60 per cent of UK households are currently out of contract with their ISP.

Even more remarkably, that figure rose to almost two thirds of over-65s – an age group which typically has more free time to dedicate to life admin than working parents.

Being out of broadband contract isn’t a crime, but it could still cost you dear…

What happens when a broadband contract expires?

The simple answer to this question perhaps explains why so many UK broadband customers don’t bother acting.

Superficially, at least, nothing happens or changes. Your ISP will continue to pipe data to and from your home without interruption.

The main difference is likely to manifest itself on your bank statement.

ISPs often advertise reduced costs during fixed-term broadband contracts, which then rise to a default monthly rate once that period ends, rather like standard variable rates on mortgages.

Of course, not all ISPs hike prices in this way. Some smaller altnets have frozen their prices for new and existing customers alike since 2021.

However, the costs of allowing a contract to lapse could be considerable.

Ofcom has previously calculated that across the UK, there was a £500 million disparity between average broadband prices and the costs of not having a contract.

Some ISPs like Community Fibre limit out-of-contract price rises to less than £50 per year, but even this is a significant sum to households struggling with the cost-of-living crisis.

It’s important to differentiate between out-of-contract price rises and mid-contract rises, which are perfectly legitimate but must be spelled out at the commencement of a contract.

How do I know my contract is expiring?

ISPs have to contact you between ten and 40 days prior to a contract ending, with a reminder and details of alternative deals.

However, it’s easy to put these missives in the bin, fail to read them properly or simply file them and then forget about them.

Study the original contract documentation to confirm what period it covered – typically between 12 and 24 months.

If you think your contract has recently ended, look for disparities in monthly charges, though these may also be distorted by extra usage, phone calls and so on.

You could even contact your ISP to enquire when your contract is due to expire and have a chat with them about alternatives to their default monthly rate.

Are people choosing not to be under contract?

They are, and for a whole host of reasons.

People who are moving house in the next year may not wish to be tied down to a contract they potentially couldn’t port across to a new address.

Households seeking an optimal deal may be happy to bide their time, wait for a favoured provider to arrive in their area, or be awaiting the installation of full fibre broadband.

Many people trust their existing ISP and don’t feel a potentially modest monthly saving is worth the time investment required to achieve it.

Being out of contract might suit people without long-term security, such as students unsure where they’ll be in the next academic year, or renters uncertain if they’ll renew their tenancy.

After all, cost is only one factor influencing UK broadband customers. Reliability and customer service are also hugely important – and if it isn’t broken…