How to dodge the 49% ‘flexibility tax’ on broadband contracts

Households who opt for shorter broadband contracts are paying on average 49% more than those tied into 24-month deals, adding around £150 to their annual bills.

Short-term contracts are essential for students, renters and anyone facing an uncertain future. But the price of flexibility is steep, with the average 12-month package costing nearly £12 a month more than its longer-term equivalent.

According to a recent survey, two-thirds of Brits (66%) say they’re uncomfortable with broadband contracts longer than 18 months, so the team at Broadband Genie have put together some tips to help people save on their broadband bills.

3 tips from a broadband expert on how to make your broadband bill flexible for less
Peter Ames, broadband expert at Broadband Genie, said:

“Flexible broadband contracts are supposed to give people freedom, but too often they just mean paying through the nose. The good news is, if you know a few tricks, you can keep your options open without getting clobbered by the so-called ‘flexibility tax’.

“First, look beyond the household names. The big players dominate the adverts, but challenger providers often sneak in with surprisingly competitive 12-month contracts or rolling deals. These companies (known as altnets) thrive on being the alternative, and that can mean better value for people who don’t want to be tied down for two years. It’s worth doing your homework and digging a little deeper, you might be pleasantly surprised.

“Second, check whether switching costs are covered. Some providers will pay off your current contract’s exit fees or give you switching credits, which means you can move without being trapped by what’s left on your old deal. In some cases, even your current provider might offer you bill credits or a reduced rate if you flag that you’re thinking of leaving. It’s worth asking the question, you may be able to cut your costs without moving at all.

“Finally, keep your switch date in your diary. If you forget when your contract ends, you’ll be rolled onto an expensive standard tariff, so set a reminder and start comparing deals a few weeks in advance. Many comparison sites now let you filter by contract length, meaning you can line up a flexible option before your current deal ends and avoid paying over the odds.

“Ultimately, flexibility doesn’t have to be a luxury. Yes, shorter deals cost more on paper, but with the right approach, you can dodge most of that 49% premium. Don’t let providers make you feel like you have no choice – there are always ways to cut the bill if you’re prepared to shop smart.

“And if you feel you’ve run out of options, you can always raise it with Ofcom – we explain how at broadband.co.uk/broadband/break-free”