Fresh off the heels of Monday’s announcement that only 7.7m households switched their energy supplier last year, ISPreview.co.uk has released a survey showing that an incredible 4 out of 10 households have not switched their broadband supplier in the past FIVE years. Furthermore, only 29.8% of people have switched once and a further 15.2% have switched twice.
Without context these figures don’t mean much. However, when you consider that 29.6% of households with superfast broadband say that they are dissatisfied with their speeds, it seems that we consumers are not applying enough pressure to the broadband industry.
So, what about the money? Reviewing current broadband contracts, we can see that Origin Broadband is offering a simple broadband contract for £17.99, with no connection fee, vs Sky who will charge £36.99, plus a connection fee of £9.95, for a slower connection but free minutes from your landline. Assuming you don’t use your landline, you could save close to £240 per year if you switched. Therefore, it doesn’t take a maths whizz, thankfully, to work out that the 41.9% of households who have not switched in five years could have saved around £1,200 if they had done so.
To some (lucky!) people, £1,200 may not seem like a significant figure, but given that the news today states that nearly 8 in 10 people cannot afford to buy a new home in their local neighbourhood, there is a clear need for people to optimise their finances in this way.
Bean is the first of a new breed of personal finance management tools. By linking your bank account to Bean, we will find and track all your recurring payments including your utility bills, mobile phone contract and loans. We help highlight contracts that you no longer need such as unused gym subscriptions, online TV streaming contracts and free trials that have overrun, helping you cancel these contracts in one click. Bean will then notify you, at the right time with the right information, if you can get a better deal on any of these contracts.