Broadband Contract Renewal: How to Avoid Overpaying When Your Deal Ends

What Happens When Your Broadband Contract Ends

Most broadband contracts in the UK run for 18 or 24 months. When the contract ends, you are moved onto what providers call an out-of-contract or standard tariff. This is almost always more expensive than the introductory rate you signed up for. Under Ofcom rules introduced in February 2020, your provider must notify you when you are approaching the end of your contract, and again when you move onto an out-of-contract rate.

Ofcom research has found that broadband customers on out-of-contract tariffs pay on average between £7 and £9 more per month than equivalent new customers. That is up to £108 per year for the same service, simply because the contract ended and no action was taken.

Understanding the End of Contract Notification

Since February 2020, broadband providers must send you a notification 10 to 40 days before your contract ends, outlining your options and their best available deals. This notification is required to include the cheapest deal they offer for your type of connection.

The important caveat: "their best deal" means the cheapest deal that provider offers, not the cheapest deal in the market. In many cases another provider will offer a materially lower price, particularly for new customers. Use the end-of-contract notification as a trigger to start shopping around, not as a reason to stop.

How to Get a Better Deal at Renewal

Start comparing deals around three months before your contract end date. This gives enough lead time to switch provider if a better deal is available, including installation time if an engineer visit is required.

• Use comparison sites (Uswitch, broadbandchoices.co.uk, MoneySuperMarket) to see all available deals at your address
• Check your current provider's new customer deals on their own website: these are often not offered proactively at renewal
• Call your provider's retention team specifically (not general customer service) and tell them you are considering switching: retention teams have more authority to offer discounts
• If switching, check whether an early termination charge applies if you are still within a contract period
• Check whether full fibre (FTTP) is now available at your address: availability has expanded significantly and full fibre deals are often cheaper than older FTTC packages

Mobile Contracts Work the Same Way

The same principle applies to mobile contracts. When a handset contract ends, many customers continue paying the same monthly amount even though the cost of the handset has been fully recovered. Switching to a SIM-only deal after the handset is paid off typically costs significantly less per month for the same data and calls.