Millions of households in the UK could be wasting nearly £900 a year on expensive mobile phone and broadband deals, according to comparison sites Uswitch and Broadband Genie.
Overcharging for Handsets
Many mobile providers continue to charge customers an inflated monthly price even after they have paid off their handset. This results in customers spending up to £335 a year over the odds. The founder of Nous.co, an online tool to help cut household bills, argues that regulators need to clamp down harder on these practices.
Ramping Up Pricey Data Allowances
Research by charity Citizens Advice has found that over 70% of customers are paying for more data than they need, costing them around £800 million a year. Despite unlimited data deals being popular, the average mobile customer only uses around 6GB of data each month. Switching to cheaper deals can save customers up to £397 a year.
Hiding Social Tariffs
Four million broadband customers who are eligible for Universal Credit and other low-income benefits are missing out on savings of hundreds of pounds per year. Major internet suppliers offer discounted deals for low-income families, but only 5% of those who qualify are signed up to them. By switching to social tariffs, families can save significant amounts on their monthly bills.
Making it Hard to Leave
Some suppliers make it difficult for customers to leave their contracts. Ofcom is investigating whether Virgin Media has broken rules after receiving multiple complaints from customers who faced challenges when trying to cancel their contracts. Retired business owner Mike Vaughan experienced difficulties cancelling his contract and was charged extra fees. After intervention from Sun Money, Virgin agreed to refund him.
Success Stories with Negotiating
Mum-of-two Kimberley Tyler managed to negotiate her family's mobile bills down from £100 to £32 per month. They also increased their data allowances and received three months' free subscription to a streaming service. Teaching assistant Tori Gabriel was unaware that her family qualified for cheaper broadband as recipients of Universal Credit. They were able to switch to a cheaper tariff and save money.
