Virgin, BT, EE, Sky customers told of '£325 rule' by BBC expert 'it is difficult to do'

A BBC expert has explained the £325 rule for anyone who is coming up for renewal for UK broadband providers such as Virgin Media, Plusnet, BT, EE, Sky and Vodafone. Appearing on BBC Morning Live, consumer journalist Rebecca Wilcox said the situation faced by UK householders was 'really irritating' - and all people need to do is make a simple phone call.

She was responding today to recent research from Citizens Advice which found that instead of automatically offering existing customers their most competitive price, providers were penalising consumers, with three million people paying over the odds for their contracts. On average, people who call and negotiate money off their bills can save more than £325 a year combined for mobile and broadband bills. As a result, the charity estimates loyal consumers who do not negotiate are losing out on a collective £28 million in savings every month.

The advisory service said its findings "unearth the murky practice" of only making better deals and discounts available after persistent efforts from customers. Ms Wilcox told hosts Sara Cox and Gethin Jones: "About three million more people are paying more than necessary for their contracts.

"If you negotiate, if you don't just do your automatic renewal, you could get up to £325 a year savings. So think of that as how much you're gonna pay yourself for renegotiating or finding a better deal. £325.

"Loyal customers who don't negotiate collectively miss out on £28 million per month, per month. That's £336 million per year. It's a huge amount of money that we're missing out on just by automatically renewing because it is difficult to do. That's why Citizens Advice have talked about this.

"Eighteen per cent of people are not negotiating or switching providers at all. Sixteen million. UK consumers did negotiate, saved themselves that average of £325." She explained that contract providers were now obliged to contact customers 10 to 40 days before the end of the contract.

She said: "These notifications must include three things. One, the current payment, so you know what you're doing. Two, the price if no action is taken, and three, any available better deals.

"This change was designed to stop customers being automatically rolled on. In January 2025, Ofcom actually also helped us by banning those mid-contract price rises, which were always really complicated because they followed inflation plus a weird percentage point of around 3.9 per cent. So now providers have to clearly state, how much you're going to pay for the year in pounds and pence."

She also advised people to talk to their neighbours about how much they're paying for their service. She added: "That's a really good negotiating point for when you want to renew."

Ms Wilcox said Ofcom said phone and broadband companies must tell you when your contract is ending and what you could save. She said anyone at the end of the contract should do one thing: "As it stands, your best route is to negotiate, and I would always say do this from a kind, respectful, polite point of view."

She continued: "Don't get really cross and blame it on the poor person at the end of the line who's who is, whose fault it is not. Look on the internet, maybe one of those comparison websites. Remember, as we said the other week, the best deal is not always at the top of those comparison websites. So have a look down all the offers, maybe find an average, see what you could be paying again, as I said just earlier, maybe talk to your friends and family, see what they're paying and then build your case."

Consumers mostly choose to negotiate, but Citizens Advice found a lack of transparency on fair pricing. It found that 78 per cent of those who negotiate on the phone found at least one of the steps difficult, including navigating confusing call centre menus to get through to the right person (43 per cent) and waiting on hold (55 per cent).

Two in three people (66 per cent) who negotiated on the phone experienced at least one negative consequence, such as feeling like they had wasted their time (39 per cent) or feeling stressed (37 per cent). The charity is calling on Ofcom to make telecom pricing fully transparent.

Citizens Advice chief executive Dame Clare Moriarty said: "For too long, mobile and broadband providers have forced consumers to go through the charade of pretending to leave in order to access hidden renewal deals. Millions of people are still paying over the odds for something as essential as mobile and broadband because of this murky practice.

"Ofcom has taken some welcome steps to strengthen protections for consumers, but this loophole needs to be closed. We want to see Ofcom clamp down on long overdue transparency on pricing, closing the gap between what deals are on the table and what's kept under the counter."

An Ofcom spokesman said: "We've made it easier to get a discount and save money, whether that's by haggling with your existing provider or moving to a new one. Phone and broadband companies must tell you when your contract's ending and what you could save by signing up to a new deal. Our rules also mean it's never been simpler to switch, and millions of customers have taken advantage of the competitive market we have in the UK."