The Citizens Advice Bureau (CAB) have released a report on introductory broadband deals, summarising that most people are unaware of the huge price hikes once the first year is up.
Were you aware that they went up an average 43%, or £113 a year in real terms? Most customers aren’t and do nothing, so they’re stung by the ‘loyalty penalty’ as the CAB call it.
The charity want the government to get involved as they have with the big energy companies, to stop them penalising those that stay, which are mainly the elderly. The CAB conducted a survey and found that those aged 65 and over were twice as likely to have been on the same contract with the same provider for over 10 years.
The Citizens Advice Bureau gave these four companies as an example of the increase:
- BT 12 month contract went up by £198 – 67% increase
- Sky 12 month contract went up £120 – 53% increase
- EE 18 month contract went up £90 – 36% increase
- TalkTalk 24 month contract went up £66 – 28% increase
It seems that Virgin Media was the only large provider that didn’t hike up the prices once the contract ended.
Proving that you have to shop around and find the best deal for you, being loyal can actually cost you money!
It’s not just broadband companies that are badly letting down their loyal customers though, these days you have to search for the best deals for everything from your phone to your insurances to your utilities.