Broadband loyalty tax: An estimated 24.5 million feel new customer deals unfair

A new study has revealed that nearly half of the UK disapproves of ‘new customer only’ broadband deals*, with an estimated 24.5 million people across the nation feeling that the deals penalise loyal customers.** The figure suggests that many broadband users would like to see these deals abolished, despite offering initial savings. 

The findings are based on the latest survey by Go.Compare broadband, and follow the news that Monzo will be launching a mobile phone plan this summer, which gets cheaper every year, essentially rewarding loyalty rather than punishing it.*** 

Overall, almost half (45%) of UK adults surveyed said they feel that new customer-only deals are unfair. In comparison, just over a quarter (26%) said they were in favour of these deals, as they help them save money. 

The comparison site also found that the older you get, the more likely you are to disapprove of these deals. Just a quarter (25%) of under-25s said they were against new customer deals, rising to a third (33%) for those aged 25 to 34 and 41% for those aged between 35 and 54. People aged 55+ hold the most resentment towards the deals, with more than half (58%) saying they feel they are unfair - over twice the proportion of under 25s. 

Women are also slightly less in favour of the deals. Three in 10 men (30%) in the survey said they like new customer deals, a number which drops to just over a fifth (22%) of women. 

Catherine Hiley, spokesperson at Go.Compare broadband, said: “Our latest figures highlight that most people don’t like these new customer ​​​​deals, which appear to discredit loyalty, unlike Monzo’s newly announced phone plan that instead gets cheaper the longer a customer stays. 

“If you’ve been with your broadband provider for a long time, it can feel like your loyalty is being punished by being excluded from new customer deals. But you can make these offers work for you. There’s no need to stay with your current provider once your initial contract ends, especially now that Ofcom has introduced its One Touch Switch system, which has made switching easier than ever.  

“When your contract is ending, try looking at the other deals out there and seeing how they compare to the deal your provider has offered you to stay with them. It’s not unheard of for customers' bills to increase threefold when their minimum term is up, meaning not only are customers not being rewarded for their loyalty but they’re often charged a lot more for staying. If you can get a better rate by switching to a new customer deal offered by another provider, then it will likely be worth making the jump.  

“It’s also worth remembering that many providers will class you as a new customer again after a set period, which can vary from a few months to a couple of years. So, if your current provider isn’t offering a competitive renewal, you could switch to another provider to get a better price, then go back to your old one at the end of that contract to get a new customer deal.” 

More information on switching broadband deals can be found here: https://www.gocompare.com/broadband/news/how-often-should-you-switch-broadband/