Dan Howdle October 23rd, 2024
If you're reading this, chances are you're looking to end your contract without paying exorbitant early exit fees. Can you do that? In most cases, no. However, there are some special circumstances such as your provider not delivering what's promised where you can.
Of course, it goes without saying that if you've already run the course of your existing contract you're free to choose a new broadband deal, but what if you're not? Let's take a look at the ins and outs: when you can switch, when you can't, and what your rights are.
There are penalties for leaving your contract early albeit except within a very narrow set of circumstances.
If you leave your contract prior to the last day of your contract term, you will still be due to pay out the remainder of your contract. That may be manageable if you only have a month or two left to go, but if it's mid-contract on a two-year deal, things are going to start getting very expensive indeed. Early exist fees can only be avoided under the following set of circumstances:
Some providers will sometimes offer to pay your early exit fees from your existing provider if you switch to them. However, this is not some unlimited fund that will allow you to switch two months into your current contract and suffer no financial penalty. Rather, they will credit the amount to your account and knock a bit off your bill each month up to a fixed limit. Check with the provider you're considering joining to see if they have such a scheme.
It used to be that if your provider raised its prices by even a single penny during the length of your initial contract, you would have the right to leave within 30 days of notice of the price rise being received. No ifs, no buts, no charges. Sadly, that's not the case anymore.
The rule still exists (thanks to Ofcom), but providers hae circumvented it by hard-wiring price rises into the contract you sign at the start. They will promise to raise prices by CPI inflation plus 3.8% every April 1, but no more. If they raise the price by more than that, you can leave with 30 days notice, but only prior to the price rise being applied. Your provider is obliged to warn you of upcoming price rises.
Ofcom is furious that providers have gone around them in this way and is currently working on new rules to prevent price rises altogether during the course of your contract. Expect these changes to appear in by 2025, but until then, this is what we're all stuck with.
If (for example) you were promised 63Mbps, say, and you're getting 8Mbps and you have given your provider ample opportunity to fix or address the problem, you can leave free of charge.
But, there is a catch. There is a difference between advertised speeds and promised speeds. When you sign up to a new broadband deal, you will be quoted the speeds your line is capable of receiving. This speed may differ substantially from the advertised average. The speed on your line may be more, and it may be less.
If you are quoted 3Mbps and you are getting 3Mbps, you cannot go back to your provider and tell them you are leaving because you are not getting the advertised speed. It's the quoted speed that matters. If on the other hand you were quoted 30Mbps on your package that was advertised at 38Mbps, but you're only getting 3Mbps and they can't fix it – this entitles you to leave free of charge.
If you have a fault and your provider has been unable to fix it, you are entitled to leave your contract and switch to another provider free of charge.
With any fault, though, ultimately there are only two outcomes. Either they can fix it, or they can't. In the meantime, don't forget that you may be entitled to compensation while you wait if your broadband is either ruinously slow or non-existent. Details of how to claim can usually be found in your contract. That won't help you get online (or help you to calm down), but it's something at least.
The Automatic Compensation Scheme by Ofcom means broadband and landline customers will get money back from their provider when things go wrong, without having to ask for it. Check Ofcom’s website to see if your provider (or the provider you want to switch to) has signed up to the scheme.
Annoyingly, there is no specified length of time you have to put up with poor or non-existent service before you can leave the contract and switch to another provider. Ofcom itself says only that the problems should have persisted for 'some time' before you get to walk away for free. Not very helpful.
The other problem with walking away comes if the intention is to get a better service from a different provider. For example, if there is a fault on your line which will involve digging up roads to fix and that's what's taking the time, switching providers is unlikely to solve your problem. This is because all UK providers (bar Virgin Media) use the same network: Openreach. If you switch from BT to Sky, for example, Sky will still have all the same problems because it operates on the same network.
There is a solution for some however. If you're on any other provider other than Virgin Media, switching to Virgin Media – if you can get it – will fix your problems. You'll be on a totally different network with a totally different physical line. Likewise, if you're with Virgin Media and the service is bad enough for long enough that you're able to walk away, switching broadband to any other provider will hopefully achieve the same goal.
Unless you're on Full Fibre, it only takes about 800 metres of copper cabling between you and your nearest green Openreach cabinet before broadband speed starts to slow down. The exceptions are if you are on a Full Fibre connection or if you are with Virgin Media, since both these options do not use the type of cabling that causes the issue.
Short of walking the streets and trying to estimate how far you are from your local cabinet, the easiest way to find out what sort of speed you might be able to get is to just call your existing provider and ask. If the maximum speed you can get is a mere fraction of the one advertised, (and as long as your provider did not warn you of this in advance), you can leave your contract. Your provider is legally obliged to deliver the service it has promised you and if it doesn’t, it is breaking the contract terms.
If you have a fault and it is not fixed quick-smart, your provider will have to start paying you compensation. For a delayed repair following complete service loss, this is £9.76 per day. For a missed appointment (the engineer failed to show) it is £30.49 per missed appointment. For new customers who experience delays getting set up, it's £6.10 per day including the missed start date. It may not sound like a lot, but it's better than nothing, which is what we had before.
Fixed-line broadband isn't all there is these days. Providers such as Three, Vodafone and EE are offering home broadband packages delivered by mobile network. It's a great solution if you live somewhere with awful broadband and no other alternatives. 4G customers can expect to get around 20Mbps and if you're lucky enough to live somewhere where 5G is available, 100Mbps to 300Mbps is not beyond reach.
If you've served out your time with your existing provider, you're free to switch to a new broadband deal. Our broadband comparison tools round up almost every deal in the UK and is updated daily. Make use of it to find the deal that suits you.
Cancelling your broadband contract whether you just don't need one anymore, you're switching, or you're moving house doesn't vary all that much from provider to provider. Here's a quick breakdown of the basics for the biggest providers in the UK.
To cancel BT broadband, start by checking if you’re still within your contract period. BT contracts typically last 24 months, and cancelling early may incur termination fees, which are charged per remaining month. If you're moving to an area where BT isn't available, you can cancel without fees. Alternatively, if BT increases your package prices beyond those rises outlined in your contract, you have 30 days to leave without penalty under Ofcom's rules.
If you’re switching to a provider that uses the Openreach network, such as Sky or TalkTalk, they will handle the cancellation process for you. However, if you’re moving to Virgin Media or cancelling entirely without switching, you’ll need to contact BT directly to provide 30 days' notice.
To cancel TalkTalk broadband, first check whether you are still under contract. If so, you may face early termination fees, which increase the further you are from your contract end date. Once you're within one month of your contract ending, you can cancel by providing 30 days' notice without incurring any fees. Some providers may even offer to cover your termination fees if you switch to them.
To cancel, the easiest way is to switch to a new provider, as they will handle the cancellation for you. However, if switching to Virgin Media, or cancelling without switching, you will need to inform TalkTalk yourself, either by calling them or by writing a formal cancellation letter (if you still live in 1880). Remember, if you have a TalkTalk TV service, it will also be cancelled when you end your broadband service.
To cancel Plusnet broadband, first check whether you are still in contract. If you are, you may face early termination fees, which reduce the closer you are to the end of your contract. Once you're out of contract or nearing its end, you can cancel by providing Plusnet with 14 days' notice.
The easiest way to cancel is by switching to a new provider, as your new provider will handle the cancellation process. If you're switching to Virgin Media, or canceling without switching to another provider, you'll need to contact Plusnet directly. If cancelling without switching, you may still incur termination fees, even out of contract.
To cancel Virgin Media broadband, first check if you're still under contract. If you cancel early, you may face an 'early disconnection fee,' which varies depending on the services and time left in your contract. However, there are circumstances where you can cancel without fees, such as during the 14-day cooling-off period, if your service is faulty, or if Virgin Media raises its prices beyond the terms of the contract.
To cancel, call Virgin Media. If you're switching to a new provider, Virgin Media will coordinate with them, except when switching to a provider on a different network like Virgin itself, in which case you'll need to cancel manually.
To cancel Sky broadband, first check whether you're still under contract. If your contract has ended, you can cancel with 30 days' notice. However, if you are still within your contract, you may face early termination fees. The exact amount depends on the services you have, when you started them, and how long is left on your contract. Sky will calculate this based on the discounted or promotional rate you are paying, if applicable.
If you're switching broadband to a provider on the Openreach network, your new provider will handle the switch for you. However, if you're moving to Virgin Media you will need to contact Sky directly to cancel.
If you want to complain to your provider about your service, especially with a view to leaving your contract early, it's important to know how your provider is law-bound to deal with any complaint you make. The first step is to tell your provider you are making an official complaint. It will note down all the details, so it's a good idea to keep some kind of record of what your problems are and how they have been dealt with thus far.
Your provider must then make a ruling as to whether your complaint is upheld or not. If not, depending on how angry and/or digitally destitute you are, you can still take the matter further via an alternative dispute resolution service, or ADR. In telecoms, the two you need to know about are the Ombudsman Services: Communications, and CISAS. Your broadband provider is required to be a member of at least one of these, so your choice will come down to which that is.
If you're feeling socially spirited, we also recommend you make a second, separate complaint to Ofcom. Ofcom – the UK telecoms regulator – uses complaints from the public to measure satisfaction levels among customers of providers as well as to formulate new rules that may prevent other people finding themselves in similar situations to the one you're in in future.