UK broadband switching jumps 24% as April bills rise

Broadband switching in the UK rose 24% year on year in March, according to data from Uswitch, as April bill increases prompted more households to shop around.

One in five broadband customers either switched provider before the rises or planned to do so within the next three months. Three million households had already changed provider in time to avoid higher charges.

The figures suggest a sharp consumer response to increases across several essential services at once. Households faced an average annual rise of £216 across council tax, water, TV licences, mobile contracts and broadband, bringing the total national increase to £6.9 billion.

Broadband accounted for an average increase of £39.60 a year, based on a monthly rise of £3.30. Some customers faced fixed increases of £4 a month, adding £48 over a full year.

Cost pressure

Affordability is now a central factor in broadband buying decisions. Some 24% of broadband customers chose their current provider primarily because it offered the lowest monthly price.

That pressure has coincided with stronger competition, particularly from regional network operators. These providers have offered some of the strongest broadband deals on record, including tariffs that in some cases avoid annual in-contract price rises, prompting larger providers to improve their own offers.

Uswitch’s internal data showed March was the busiest month for broadband switching since its records began in October 2016. Its measure of broadband deal value also reached its highest level since the index began in August 2023.

Not all customers moved quickly. Some 39% of broadband bill payers knew their bill was going up but did not plan to act, leaving them exposed to the full increase.

Market shift

The pattern suggests a widening gap between households willing to switch and those staying on existing contracts despite higher costs. Customers who stay with the same provider after their contract ends often move on to more expensive terms, while rival offers for new customers can be materially cheaper.

A household reaching the end of a broadband contract could save an average of £329 a year by taking a new deal. That adds to evidence that bill rises are prompting more active shopping around in a market where price has become a stronger differentiator.

Some of the biggest broadband brands have adopted fixed annual uplifts for new customers rather than the inflation-linked formulas criticised in previous years. While that offers more certainty, it still means higher charges each April for customers who remain in contract.

Regional providers have used that backdrop to compete on price and on promises of no annual rise. The result is a more competitive market at a time when household budgets are under strain from multiple directions.

Ernest Doku, broadband expert at Uswitch, said: “By moving in record numbers this year, broadband customers are sending a clear message that they will not pay over the odds while budgets are already under such intense pressure.

“What we are seeing is a significant shift in the market. The expansion of regional networks – both aggressively priced and keenly focused on customer service – has created a level of competition that hasn’t been seen in years.

“These providers are offering high speeds and great reliability on their networks at much lower price points, which is finally forcing the bigger brands to offer much more to keep their customers.

“If you have faced a price rise this April, it is not too late to check your contract. With the market as competitive as it is right now, there is a real opportunity to find a deal that protects your household budget.

“The average household coming to the end of their contract could save £329 a year by switching to a new deal, so it really pays to see what else is out there.”