Broadband Early Exit Fees: How to Leave Without Paying

Switching broadband providers can seem hard. This is true if you are in a broadband contract that has a minimum term. A lot of people in the UK worry about early termination fees or cancellation charges. They think about these costs when they want to leave their current provider before their contract period is up.

Under Ofcom’s rules, there are times when you can cancel your broadband without a fee. You can cancel if your broadband provider increases prices. You can also cancel if your broadband speed is much less than what they promised. If you are moving to a new home and your current broadband service isn’t available, you might have a legal right to end your contract without any penalties.

What Are Broadband Early Exit Fees?

Why Do Providers Charge Early Termination Fees?

When you sign up for a new broadband contract, you agree to a minimum contract period. This period is often 12, 18, or 24 months. If you decide to cancel your broadband before this period is over, your broadband provider might charge you an early termination fee. This fee helps them pay for their costs.

This cancellation fee is often calculated by using:

• The monthly price of your broadband plan.
• The number of months left in your minimum term.
• Any discounts or special offers you received when you joined.

Example of an Early Termination Fee Calculation

If your monthly charge is £30 and you have six months remaining in your contract, your early cancellation fee could be £180. This is calculated by taking £30 and multiplying it by 6 months. Some providers might reduce this fee if they can find a new provider to take over your service.

Broadband providers must clearly show cancellation charges at the start of your contract. This is a requirement under Ofcom’s code of practice.

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When Can You Cancel Broadband Without an Early Exit Fee?

You can change your broadband provider without paying a fee in certain situations.

1. Your Provider Increases Prices Mid-Contract

If your broadband provider increases prices while you have a contract, you may cancel your broadband. You can do this without paying an early termination charge.

• Ofcom’s rules say that if your contract does not state a price increase clearly, you can cancel within 30 days after they announce it.
• This rule is for BT Broadband, Virgin Media Broadband, Sky Broadband, TalkTalk, and other major UK internet providers.

Example

In 2023, Virgin Media and BT Broadband raised their prices by up to 14.4%. They explained this change was due to inflation. Customers who were impacted by these price increases can leave their contracts without any penalties.

2. Your Broadband Speed is Slower Than Promised

If your internet speed is much slower than what your contract said, you can cancel without paying a fee. This is part of Ofcom’s Great Connection Guarantee.

• If your broadband provider cannot solve speed issues in 30 days, you can leave without paying any fees.
• This rule applies to providers in the Openreach network, like BT, Sky, Vodafone, and TalkTalk.

Fact

Ofcom’s research shows that 1 in 5 UK homes have slower broadband speeds than they anticipated. If you feel your broadband speed is lower than it should be, you should do a speed test. After that, contact your customer service team and let them know about the issue.

3. Moving to a New Home Where Your Provider is Unavailable

If you are moving to a new home and your current provider does not offer service there, you can cancel your broadband contract without any fees.

• Sky Broadband and BT Broadband allow you to cancel without paying a fee if your new address is not in their service area.
• Virgin Media Broadband may charge you a disconnection fee, even if they can’t provide service at your new address.

Tip

Before you move, you should ask your broadband provider if they can move your service. Some providers allow you to change your contract without charging you for cancellation.

4. Your Broadband Provider Breaches Ofcom’s Code of Practice

If your broadband provider does not follow its contract or does not stick to Ofcom’s code, you may have the legal right to cancel without paying a cancellation fee.

Examples of contract breaches include:

• Service cuts or not following the Great Connection Guarantee.
• Errors in billing or not applying the discounts agreed upon.
• Incorrect information about contract terms or cancellation rights.
• If you think your broadband provider has not followed Ofcom’s rules, submit a formal complaint to their support team before contacting Ofcom.

How Much Are Early Termination Fees for UK Broadband Providers?

Broadband providers must show the early termination charges clearly at the start of your contract. This rule is part of Ofcom’s code of practice.

How to Cancel Your Broadband Without Paying a Fee

Step 1: Check Your Contract Terms

• Check your broadband contract. Look for details on minimum contract periods, early termination fees, and price increase rules.
• If your broadband provider raised prices while you have your contract, see if you can leave without penalties.

Step 2: Contact Your Provider’s Customer Support Team

• Call or email your current provider to ask how to cancel.
• If you get a cancellation fee waiver, ask them to put it in writing for you.

Step 3: Give the Required Notice Period

• Most broadband companies require 30 days notice if you want to cancel.
• If you cancel in the middle of a month, you may need to pay for the rest of that month.

Step 4: Return Any Equipment

• Sky Broadband and Virgin Media ask their customers to return routers and TV boxes.
• If you do not send back the equipment, you may have to pay extra fees.

Step 5: Switch to a New Provider

• After you cancel, look for new broadband contracts. You might get a better deal.
• Many providers offer bill credits or discounts for new customers.

Can You Negotiate Your Early Exit Fee?

Switching broadband providers often means you need to pay an early termination fee. But many customers find ways to lower this fee or even get rid of it. If you face an early exit charge, you have several options to reduce or eliminate it before switching to a new provider.

How Some Broadband Providers Offer Discounted Exit Fees

Broadband providers understand that customers may switch if they find a better deal. To retain their customers, some ISPs are willing to reduce the fee for early cancellation or offer other choices.

Here’s how some large internet companies handle discussions for canceling early:

• BT Broadband – They might lower your exit fees if you pick a cheaper plan instead of canceling.
• Virgin Media Broadband – They may not charge the fee if you are moving to a place they can’t service.
• Sky Broadband – They can credit some of your exit fee if you switch to another Sky package.
• TalkTalk – They might let you have a shorter contract term instead of canceling completely.
• Vodafone – They usually offer lower exit fees if you stay with your Vodafone mobile plan.

Always ask your broadband provider about any deals they have for customers. It’s a smart move to do this before you pay the full cancellation fee.

How to Ask Your Customer Service Team for a Bill Credit or Waiver

Many broadband companies have a team focused on keeping their customers. If you call them and say you want to switch, they might offer you a lower exit fee. They may also give you a bill credit to keep you from leaving.

Steps to Negotiate a Lower Exit Fee

• Call your provider’s customer service team and ask to be transferred to the cancellations department.
• Mention a better deal by saying, “I found a good offer with BT Broadband, and their exit fees are lower.”
• Request a waiver by giving a real reason for leaving, like a price increase, slow broadband, or moving to a new home.
• Ask about retention deals. Some providers might offer you a credit to lessen exit fees if you select a cheaper monthly plan.
• Be polite but firm. If they do not give you a lower price, ask to speak with a manager about your request.
• If your provider won’t negotiate, try calling back later.
• Some agents may be more willing to offer discounts than others.

How January and April Are Common Months for Broadband Price Increases

Most broadband price rises take place in January and April. This happens due to yearly price changes that are affected by inflation.

• January Price Rises – At the start of the year, companies like BT, Sky, and Virgin Media announce price hikes due to inflation.
• April Price Increases – Many internet service providers raise their prices in April, often linked to the Consumer Price Index (CPI) or the Retail Price Index (RPI).

Tip: If your provider increases their prices, you have 30 days to cancel with no fee.

How ISPs Offer Discounted Broadband Deals in September and Black Friday Periods

Some of the best broadband deals appear during:

• September (Back to School Offers) – Internet service providers offer special discounts on broadband plans for students and families.
• Black Friday & Cyber Monday (November) – Many broadband companies lower installation fees and give bill credits to new customers.
• End-of-Year Promotions (December) – Some providers reduce the prices of broadband services to keep customers before price rises in January.

Tip: If you want to change your broadband provider, waiting for seasonal discounts can help you save money on exit fees.

What to Do If Your ISP Refuses to Cancel Your Contract Despite Valid Reasons

If your broadband provider will not let you leave, try these steps:

• Speak to a manager about your complaint – Ask for a higher review of your case.
• Request a written reason – Internet service providers (ISPs) must clearly explain if they deny your request.
• Use Ofcom’s complaint system – If your ISP does not help, report them to Ofcom.
• Bring your issue to an Alternative Dispute Resolution (ADR) service – Providers must be members of CISAS or Ombudsman Services for fair treatment of disputes.

How to File a Complaint with Ofcom if Your ISP Does Not Follow Regulations

If your broadband provider does not follow the rules from Ofcom, you can:

• You can send a complaint using Ofcom’s online portal.
• You can call Ofcom at 0300 123 3333 if you are in the UK.
• You can write a formal letter to share your case.

Ofcom does not handle personal complaints. But if many people complain, it can result in fines for ISPs. This can also lead to changes in rules that help protect customers.

What Is the Broadband Cooling-Off Period?

The broadband cooling-off period is your legal right in the UK. You can cancel a new broadband contract within 14 days. If you cancel during this time, you won’t pay any fees for canceling or early termination. This 14-day period starts when you sign up for a new broadband contract, whether online, by phone, or from door-to-door sales.

You can cancel your new broadband deal for free if you change your mind within 14 days. This rule comes from the Consumer Contracts Regulations 2013.

When Does the Cooling-Off Period Apply?

You can use the cooling-off period if you:

• You can sign up for broadband online, by phone, or with a door-to-door salesperson.
• Keep in mind that the broadband service may not meet your needs. This could mean slow speeds or extra costs.
• If you find a better deal with another provider, you have 14 days to switch.
• You can decide that you no longer want the broadband service.

The cooling-off period starts the day you sign the contract. It does not begin on the installation date.

When Does the Cooling-Off Period Not Apply?

• You did not tell us in the right time.
• The service or product you bought is all used up.
• You might have agreed to a deal that does not let you cancel now.
• The product is a special order or a custom item.
• You signed up at the store. But cooling-off rights only apply to distance sales, like online or phone orders.
• Your broadband service is already active. Some providers may charge you for the time you have used it.
• You signed a broadband contract for a business. Other rules apply to business accounts.

How to Cancel a Broadband Contract During the Cooling-Off Period

• If you want to cancel your broadband during the cooling-off period, follow these steps:

1. Call, email, or use live chat to contact your broadband provider.
2. Let them know you are cancelling under the Consumer Contracts Regulations 2013.
3. Provide your account details, such as your name, broadband package, and the start date of your contract.
4. Return any equipment, like routers or cables, if they request it.
5. Request a written confirmation that shows your cancellation is complete.

Which Broadband Providers Offer a Cooling-Off Period?

• All UK broadband companies must offer a 14-day cooling-off period by law.
• Rules for returning equipment and any fees for using services may be different.

What Happens If You Cancel After the Cooling-Off Period?

If you cancel after the 14-day cooling-off period, you may have to pay an early termination fee. This is unless:

• You can cancel without any fees if your provider raises prices while you are still under contract.
• You can cancel if your broadband speed is slower than promised and the provider does not fix it.
• You can also cancel if you are moving to a new address where your provider doesn’t offer service.

How to Avoid Paying Broadband Exit Fees

If you want to switch your broadband provider due to high prices, slow internet, or moving to a new area, it’s important to understand your cancellation rights. Knowing this can help you save money. Always remember to check:

✅ Your minimum contract period before cancelling.

• A notice period helps you dodge extra monthly fees.
• You can find out if you qualify for a penalty-free cancellation by looking at Ofcom rules.

✅ You can get a better deal if you find a new broadband contract before you switch.

• By following these steps, you can avoid early termination fees.
• You can cancel your broadband plan without any penalties.
• You will also discover a better broadband deal that matches your needs.

FAQs About Broadband Early Exit Fees