Cheap broadband deals

Your guide to cheap broadband packages

Dan Howdle

We all want to get the best deal possible whether we're shopping at the supermarket, buying a new car, or indeed switching to a new broadband package. The question is always whether paying less means getting less. Most of us are after value for money, not paying less at the cost of substantially compromising the quality of the service we're siging up to. There are a lot of quirks, workarounds and pitfalls when it comes to getting the cheapest broadband deal as opposed to the fastest or best. And here, we're going to cover the lot.

Understanding cheap broadband

It used to be that the cost of broadband varied wildly across different providers, even when comparing packages running at the same speed. Now though, things have coalesced a little more and it's not as easy as it once was to single out a stand-out deal. Not least because the monthly price you pay just one component of the overall cost of your contract.

What is cheap broadband?

This is actually less obvious than it seems thanks to the number of factors contributing to what is ultimately a good deal. They are:

• Availability – If you want it, first you're going to have to live somewhere you can get it
• Speed – Determine how fast you need and how much speed you can afford
• Monthly cost – What you pay each month
• Upfront or set-up costs – Some broadband providers have up-front fees to pay for installation, router postage and so on, others don't
• New customers deals – Many broadband providers offer introductory pricing, free months, cashback, vouchers/gift cards, free gifts, or bill credit. The value you get from a new customer offer may substantially affect the cost of your contract
• Contract length – With providers leaning more towards longer and longer contracts, contract length can both affect the monthly price (longer is generally cheaper), and determine how many times you will likely be hit with a price hike
• Price hike policy – Most providers will raise their prices for existing customers once per year. There are some fixed-price deals out there, so if you want to avoid any yearly rises you may want to try to seek them out
• Customer service reputation – You can check with online review sites like Trustpilot as well as Ofcom's annual customer service reports. Broadly, there are no truly 'bad' providers when it comes to customer service, but there are some that are better than others

We strongly advise taking all of these factors into account when determining the cheapest and best deal for you personally. Because the concept of cheap, as you can see, extends far beyond the headline monthly price. There are also issues of value, which we'll cover next.

How cheap broadband works: Price versus value

Although there is a lot of nuance in establishing the right deal, and although we all have differing notions of what constitutes 'cheap', one thing to consider is whether 'cheap' offers good value, or whether you are short-changing yourself when it comes to speed, customer service or the quality of the equipment installed in your home when you choose the cheapest deal you can find.

Largely, cheap broadband can be separated into two types of provider and package. They are:

Budget providers – Providers which specialise in low cost broadband beyond any other factors or features. Once there was a great many of these (Post Office Broadband, SSE, Shell Energy Broadband and more), but most of them have subsequently ceased trading, and we think we know why: That it's not enough to simply have the lowest monthly price. You have to provide a good service too. A few budget providers do remain though, and we'll talk about those a little later on.

Premium providers offering special packages and deals – These are our preferred option because depending on when you choose to compare the deals available to you, you will find that some premium providers (BT, Sky, Virgin Media and so on) are offering deals that compare well (in terms of cost of the overall contract) to so-called budget provider deals, but with none of the disadvantages of a bare-bones service.

What's the cheapest type of broadband?

There are essentially four types of broadband available to us in the UK (not including satellite, site-to-site, and other rarely used technologies). They are Standard Fibre, Full Fibre, Cable Broadband (Virgin Media), and 4G/5G mobile broadband. Here is an overview of their speeds, availability, and what you will typically pay.

It's worth noting that providers want you on the latest technology if you can get it. So if you can get Full Fibre, your chosen provider is extremely unlikely to allow you to take out a Standard Fibre deal. Worry not though –Full Fibre is faster and more reliable, and speed-for-speed is the same or cheaper than a Standard Fibre package.

Price impact on broadband speed

You'd think, wouldn't you, that it would follow that the slower the broadband package you choose, the less you'll pay. And while this is certainly true when looking at Full Fibre packages from a single provider (150Mbps is always going to be cheaper than 900Mbps from BT, for example), between providers and across different technologies this isn't always the case.

That's because what you pay can have as much to do with what you get as anything else. If you can only get Standard Fibre, you're not going to find it considerably cheaper than a faster Full Fibre package available elsewhere, but not to you. So while price can be about speed, it's more rooted in what you can get. In availability, than almost anything else. Here is a quick breakdown of factors that affect the speed you can get more than just the price you pay:

• Distance from exchange – If you can't yet get Full Fibre broadband and you live quite far from the nearest green street cabinet, you're going to be dealing with very slow speeds no matter what you're prepared to pay, and it may be worth looking into what sort of reception you can expect to get from 4G or 5G mobile broadband
• Router location – If you put your router in the wrong spot, you can expect speeds to be slow no matter what speed you're actually paying for. Try to put it somewhere central where it's not enclosed or surrounded by thick walls close by
• Router capability (number of devices) – The cheaper the broadband deal, the more likely it is you're going to get an under-specced router. This is where providers save money. And usually that means a limited number of devices
• Time of day – Standard Fibre broadband can still slow down a bit at busy times of the day, both because your neighbours are all using a lot of bandwidth and because people in your own home are using a lot of bandwidth

Packages and bundles

Obviously, we're here to talk about cheap broadband, but it's also about getting the best deal. One way to get a particularly good deal is to bundle together the TV and broadband services you need. Typically this will save you 25-50% of what you'd pay for the services separately. Package options to consider therefore include…

• Broadband only – Broadband on its own, plain and simple
• Broadband and phone – Some packages come with a phone line as standard, some do not. Sometimes you do not have a choice but to have a phone line, but you won't have to plug a phone into it if you don't want to
• Broadband and TV – Sky, BT/EE, Virgin Media and TalkTalk all offer decent subscription TV options, and you can bundle in other streaming services such as Netflix in most cases to save you further money
• Broadband, TV, phone and a mobile SIM – Virgin Media's 'Volt' deals include all of the above, plus an O2 SIM, often with unlimited data. These packages are expensive on the fact of it, but extremely cheap when you tak account of everything that's included

Finding the right cheap broadband deal

We've already covered the aspects of a deal that determine whether or not it's cheap, and that 'cheap' and 'value' are not always the same thing. So how do you go about putting that into practice? It's a simple case of going one step at a time.

Step 1: Check your postcode to see what's available

You can't rightly choose a new deal if you don't know what's available where you live. Can you get Full Fibre? Can you get Virgin Media? Only once you've established that can you take the process of choosing the best cheap deal to the next step. Enter your postcode at the top of this page and we'll show you exactly what's available. And don't worry, we don't store your data.

Step 2: Sort by price, then by speed

You can use the drop-down menu on this page above the comparison list to show you the cheapest deals first. Generally speaking, the cheaper deals will also be slower. So, provided you have a speed in mind that you're after, you can then scroll down the list till you find the first deal at that speed. And bingo, you've just found the cheapest deal available at your required speed.

Step 3: Contract length, setup fees and other factors

You should have in front of you now the start of a list of deals at the speed you require, sorted cheapest to most expensive. From among those, now consider contract length (shorter is better), whether there are any setup or up-front fees, and whether there is an attractive or potentially price-affecting special offer on. Broadly speaking, it's better to choose a deal that has a special offer attached, but sometimes you will find that the £50 gift voucher (for example) is obliterated by a higher monthly price. Take the time to figure out what works out cheaper.

Special offers and promotions

We're already briefly covered special offers and promotions, and why it's wise to keep an eye out for them. Indeed, we have one simple filter button in our comparison that allows you to single out only those deals which offer something a little extra. But these come in many forms, so it's worth talking through each type, because the terminology can be a little confusing.

• New customer deals – Simply the common name for any deal only offered to new customers and not offered to anyone renewing or re-contracting with their existing provider
• Seasonal promotions – Christmas, new year, Black Friday, and the odd summer sale. Special offers come and go all the time, but you can pretty much guarantee that there will be some juicier examples during these particular times of the year
• Gift vouchers – A simple card or code you can redeem at a specific store like Tesco, Amazon, Marks & Spencer and so on. These are redeemable after you've been up and running for a set period, so do read the small print
• Reward cards/cashback – Unlike gift card, reward cards can be spent anywhere as they arrive in the form of a pre-paid credit card (usually Mastercard). BT tends to favour these
• Free gifts – Rarer these days with broadband (compared to mobile phone deals) than they used to be, free gifts do still crop up from time to time with broadband and TV bundles, and sometimes they're great – depending on if you actually need the new TV or whatnot
• Free months – Sometimes you will see 'First three months free' or 'half-price' for a set number of months. Whip the calculator out and see how that affects the overall contract price if you have time to. Generally these deals are worthwhile, but we do tend to see them more often attached to deals that are far from the cheapest to begin with
• Bill credit – Is a set amount of money that will be taken off your first few bills. So, for example, if you get £90 bill credit and your broadband package is £30 per month, it's the same in practice as having your first three months free

Additional and hidden costs to consider

Having covered the good things to keep an eye out for, it's as well we warn you of the bad. There are costs attached to broadband packages that go beyond the monthly cost.

Mid-contract price hikes

There are very few packages and providers that offer a fixed price from the beginning of the contract to the end. It used to be that any price rise during your contract gave you a free pass to switch to another provider, but providers have circumvented those rules by baking expected price rises into your contract. Namely that your prices will go up every April 1 by inflation plus 3.8%.

During the Covid years these price rises were substantial (up to around 15%) simply because inflation was so high. Now though, annual price rises should be around 5-7%. It's worth noting that Ofcom is currently in the process of cracking down on mid-contract price rises altogether. You can expect them to be a thing of the past within the next couple of years, but bear in mind that any such ban is unlikely to be retrospective or apply to your current contract.

Setup and activation fees

New Full Fibre and Cable (Virgin Media) installations sometimes require setup fees if new lines are necessary, while most new installations are provided free these days. Some providers will charge you a small amount for the postage of your router, while one or two will even want the first month's payment up-front (though that doesn't technically qualify as an additional cost). Just keep in mind that up-front fees are still out there, and to make sure you understand which apply to you and your situation.

Out of contract pricing

This is the big one. When your contract ends, the amount you pay is going to sky-rocket (often it'll double). Your provider is duty-bound to warn you of the new pricing and from when you will be paying it. It will offer you the opportunity to renegotiate your contract with them, or to switch. You may get a good price if you renegotiate, but you won't be able to get any new customer offers unless you switch.

Switching providers to save money

As we've shown already, when you switch, you save money and can take advantage of some great new customer deals. But that's not the only choice available to you. You can also renegotiate your existing contract.

How to switch providers

• Enter your postcode here – Pop it into the box at the top of the page to se what you can get and sort the list by cheapest, keeping an eye out for the speed you're looking for and any new customer special offers
• Choose a new deal – Once you've chosen, click the button to be taken through to the appropriate page on the provider's website
• Let your new provider do the rest – In terms of timescale, installation, and informing your existing provider you're leaving, your new provider will do it all now, even if you're switching between Virgin Media and another provider (where previously you have to inform both providers)
• Send back old equipment – Your old provider will most likely want their old equipment back. Be sure and post it in a timely fashion or you may be charged for it

How to renegotiate your contract

• Choose a new deal – Even if you're not planning to switch, you need to highlight a deal you're going to be asking your existing provider to match in order to keep you as a customer
• Call your existing provider – Call up your existing provider and speak to their retentions team. They will make you an offer, and if it's not as good as something you could switch to, you are then in a position to haggle
• Walk away – If they're not going to match offers that are competing, just switch. It keeps them honest, and nine times out of ten they will be back on the phone to you with a better offer same day. Because there's a difference between walking away and threatening to walk away

Social tariffs for low-income households

Even lower priced broadband packages are available from almost all broadband providers. These are known as 'social tariffs' and providers do not advertise them, and nor do they typically list them among other deals.

What are social tariffs?

A social tariff is a broadband deal that's only available to households and people who meet a certain set of criteria – namely low income, and by dint of that, claiming certain benefits. Here are the criteria for being eligible for a social broadband tariff.

Eligibility for social tariffs

In order to get one, you need to meet at least one of the following criteria:

• Receiving Universal Credit – You may be eligible if you currently receive Universal Credit
• Receiving Pension Credit – Pension Credit recipients often qualify for social broadband tariffs
• Receiving Income Support – If you receive Income Support, you might qualify for social broadband rates
• Receiving Jobseeker’s Allowance (JSA) – Individuals on JSA may be eligible for reduced broadband tariffs
• Receiving Employment and Support Allowance (ESA) – ESA recipients may qualify for discounted broadband tariffs
• Other qualifying benefits – Some providers also consider Housing Benefit or similar benefits. Check with your provider for specific requirements

Cheap broadband providers

The number of 'cheap broadband providers' in the UK has dwindled consistently across the past half-decade or so. Where once there were numerous companies all competing to offer the cheapest broadband, the main battleground is now quality of service (best routers, fastest speeds, most comprehensive Wi-Fi and so on), with the big providers now only appearing to care in a very cursory way for whether they are, or are near the cheapest broadband available.

A handful of 'budget' providers survive, though, and are still battling it out to be the cheapest, rather than the fastest or best. There are also providers who are doing both – offering basic, cheap packages as well as super-sophisticated, higher end ones. Here's a rundown of the providers that still qualify as 'budget' in some way.

TalkTalk – Still likes to aim at the cheapest end of the table, despite being one of the 'big four' UK broadband providers. It aims for simple, straightforward broadband with mid-range equipment and decent enough customer service.

Plusnet – Owned by BT and renowned for its stellar customer service reputation, Plusnet keeps things as simple as possible, including its technology and speeds. It has only just recently added higher end Full Fibre packages to its repertoire, far behind most other providers. However, prices do tend to be low.

NOW Broadband – Now run through its parent company, Sky, NOW Broadband offers lower speeds than other providers (300Mbps isn't slow, but it's nowhere near the 1.6Gbps offered by other national providers). It also carries out no credit checks and offers one-month rolling contracts.

Altnets – There are literally hundreds of alternative networks (altnets) dotted around the UK, each run in a specific local area. We compare a few of them here, and if you're lucky enough to get one, you can usually expect very fast, very cheap broadband with no mid-contract price hikes.

What our expert says...

"By all means look at the cheapest deal, but bear in mind that the cheapest is not always the best value. Today, where once providers all battled it out to be the cheapest, now they tend to compete on things like the best router, Wi-Fi coverage, add-ons or customer service, with very few providers now specifically trying to offer the cheapest deal around. Be mindful that a few extra pounds spent may be worthwhile."

Dan Howdle, Broadband and mobile expert