When switching to broadband providers, new customers get up to 60% discount in pricing during the first contract term.
Once the initial contract ends, the post contract or out-of-contract pricing applies and now the customers need to pay the standard price in the subsequent contracts.
This price rise after the first contract is common in the broadband and TV market.
Why there is so much difference between monthly in-contract and post-contract prices?
The promotional offers for the new customers result in sharp drop in price during the first contract term.
According to the latest study, the post contract price hike often makes the customers pay up to £150 a year more when they re-contract the same package.
Only way to avoid this steep price hike is to change broadband provider by the end of the contract.
What is the length of minimum contract?
The length of contract varies among the service providers.
Virgin Media, Post Office and Now broadband offer 12 month contracts.
Packages from TalkTalk, Sky, EE and Plusnet come with 18 month contracts. BT packages come with longer contract of 24 months.
There is no fixed minimum contract with a few providers like TalkTalk and Plusnet allow customers to choose from various contract options.
No contract and 30 days rolling contracts which come with fixed pricing are also available with Virgin Media, Hyperoptic and Plusnet.
Are there any providers which do not hike post-contract prices?
Currently, only Zen Internet and Utility Warehouse offers the same pricing after the initial term, meaning, these small operators do not offer discount in monthly pricing to the new customers.
TalkTalk also offers packages to the existing customers without increasing price after the first contract term.
However, most major providers increase the out-of-contract price up to £15 a month. Virgin Media, BT and Sky are the leading ISPs for post contract price hikes.
How to find information on post contract prices?
Most providers do not display the post contract prices clearly, but only in small printing. You will need to read the terms and conditions on the respective provider’s website.
However, ISPs like BT, Virgin Media and Sky clearly state out-of-contract prices of packages along with monthly in-contract prices.
| Package | In-contract price | Post-contract price | Price hike |
|---|---|---|---|
| BT Superfast Fibre (50Mb) 24 month contract | £28.99 | £36.99 | 78% |
| Virgin Media M100 (108Mb) 12 month contract | £27 | £49 | 55% |
| Post Office Fibre (38Mb) 12 month contract | £20.90 | £37 | 56% |
| TalkTalk Faster Fibre (38Mb) 18 month contract | £21.95 | £36 | 61% |
| Plusnet Fibre (36Mb) 18 month contract | £21.99 | £35.98 | 61% |
| EE Fibre (38Mb) 18 month contract | £23 | £37 | 62% |
| John Lewis Fibre (36Mb) 18 month contract | £25 | £40 | 63% |
| Sky Superfast (59Mb) 18 month contract | £27 | £40 | 68% |
How to beat post contract price hikes?
There are ways to help you avoid getting hit by out-of-contract price hikes and save money.
Be well informed on standard and post-contract prices
Read all the price details such as monthly cost, upfront cost and out-of-contract prices carefully when you compare the tariffs or re-contract. You may need to check the small print to find post contract pricing.
Know the end date of the existing contract term
It’s important that you know the expiry date of the current contract. This can help you get discounts from your provider by haggling or switch to better deals without exit fee.
Ask for discounted monthly price before switching
Just before the end of contract terms, you can contact your provider and try haggling to get the same low pricing for the new contract. Currently, TalkTalk customers are able to re contract without any price hikes.
Switch your broadband provider
By changing the service by the end of contract will help you get discounted contract prices with a new provider. This way, you can avoid paying more and save your money. Switching has been made easier by the new rules set by the regulator Ofcom.
Just get a quote from us and compare the latest deals from top providers. After signing up online, your new supplier will initiate and complete the process and you need not contact your current provider.
What is mid-contract price rise?
Since, minimum contract term varies between 12 months and 24 months, there is no guarantee that prices will be the same during the term.
Only a few providers like TalkTalk, Plusnet and Post Office commit for ‘no mid-contract price rises’.
Under the new Ofcom rules, customers will be notified of price rises a month earlier. You will need to read terms and conditions to get more more information.