Plusnet has recently announced the cost of their broadband is about to increase. Take a look at how a price increase for your broadband could mean you’ll actually be better off.
I think it’s something we all get used to. A utility supplier tells us that as much as they don’t want to, they have to put their prices up. We all have a bit of a grumble about it, but in a month it’s all forgotten and we end up paying extra for the same service. Believe it or not, you can use these price rises to your advantage if you box a little clever. A price rise could see you end up paying less.
I recently received an email from Plusnet, informing me that my contract was due to increase by £1 per month. This isn’t a life-changing amount by any means, but it gives me an opportunity to save a bit more.
Where to begin
The first thing you should always do when checking for broadband providers is to look for cashback deals. If you’ve never used a cashback site before… then where have you been? Basically, shop through a cashback site and you receive money for your purchase.
In October 2017, my deal for fibre broadband with BT had ended and my bill increased to £32 per month. A search for other providers showed that Plusnet had the best deal at £22.99 per month. This was quite a hefty saving, but on top of this, I received an extra £70 back by signing up through Quidco. Those of you good at maths will see that the cashback covered the first 3 months of broadband payments.
Then in April 2018, Plusnet announced that they had to increase their prices by £1 per month. In the grand scheme of things, this isn’t much, but an increase in the price means that you can leave your contract penalty free.
6 months into my contract I had paid £137.94 for my broadband. With cashback taken off, the total stood at £67.94 or the equivalent of £11.32 per month. I challenge anybody to find a fibre deal for less.
The next step
Once you’ve received notice of the price increase, you have 30 days to tell your provider that you want to leave and to choose another supplier.
There are lots of offers available when I checked some comparison sites, but my favourite had to be from BT.
Their price came in at £29.99 per month. Now you may think that’s slightly crazy to move from a £23.99 per month contract (the new price with Plusnet) to one that is £6 more expensive. But switching to BT came with a couple of perks. First of all, signing up through TopCashback earned me £65 back. Plus, BT was offering a prepaid card worth £130 when you joined. The contract is for 18 months and with the discounts included, it works out at £19.16 per month.
Another benefit is that it is very likely that BT will increase their prices too within the next year. That will allow me to swap providers early again, meaning that my contract is even cheaper.
Now I know there are a lot of figures above, but please try to take them in as much as you can.
If in October 2017, I had stuck with BT for another 2 years at £32.99, I would have spent £791.76. By swapping to Plusnet and back to BT again, the total cost comes to just £412.80.
*Please note that my figures do not include postage for my routers. However, as I sell these on eBay for more than postage costs (I recommend you do too), I decided not to include this cost.