Broadband switching cost of living pressures drive 3.5 million to change provider

Broadband switching driven by cost of living pressures has prompted almost 3.5 million people to change their landline or broadband provider over the past two years, according to figures from Ofcom, the UK’s communications regulator.

Ofcom is the body that oversees television, radio, and telecommunications in the UK. Its latest data tracks how households are responding to rising bills by shopping around or cutting services altogether.

How broadband switching and cost of living pressures are reshaping household bills

The 3.5 million switches all took place through Ofcom’s “one touch” switching process, which was introduced for landline and broadband customers two years ago. The process means a customer only needs to contact their new provider when moving, rather than dealing with their existing one. Ofcom says that since the system launched, almost 3.5 million people have used it.

Out-of-contract customers who hold broadband, landline, and pay-TV services with the same company could save more than £100 a year by switching to a cheaper deal, Ofcom’s research suggests. One in three of those so-called “triple play” customers were out of contract last year, leaving money on the table each month.

The pressure on household budgets is visible in Ofcom’s payment data too. 4% of telecoms customers missed a payment last quarter, and one in 10 made changes such as reducing a service (12%) or cutting spending elsewhere (10%), while 7% cancelled a service outright.

Millions of vulnerable households still missing out on cheaper deals

Beyond the switching figures, a separate concern stands out. According to Perspective Media, Ofcom has said that 97% of low-income households are still missing out on broadband “social tariffs,” which are discounted packages that providers offer to people on certain benefits. Those tariffs could save eligible households around £144 a year, yet awareness and take-up remain extremely low. Social tariffs are a little-discussed option: a dedicated low-cost package, separate from standard promotional deals, designed specifically for people who find regular broadband pricing unaffordable.

The scale of financial difficulty in the telecoms sector is also wider than the switching numbers alone suggest. Yahoo Finance reports that an estimated 5.7 million households have faced affordability issues severe enough to force them to cancel telecoms services or miss payments to providers entirely. That figure puts the 4% missed-payment rate from Ofcom’s quarterly data into a broader context: the problem extends well beyond a short-term cash-flow squeeze for a small number of people.

What Ofcom’s revenue data tells us about the market

Meanwhile, Ofcom’s Q4 2024 telecommunications market data update shows that the average monthly retail revenue per subscriber stood at £13.21 in the final quarter of 2024, with post-pay subscribers generating more revenue than pre-pay users. That figure reflects what providers earn on average per customer each month, and it underlines why providers have a financial incentive to keep customers in higher-cost out-of-contract arrangements rather than nudging them towards cheaper options.

Natalie Black, Ofcom’s group director for infrastructure and connectivity, urged people to act. ‘We know that many people feel worried about their bills creeping up, but with a few simple steps some customers could achieve big savings,’ she said. ‘Our advice to everyone with a broadband, mobile, pay-TV or landline contract is to check whether you’re in or out of contract, compare the offers out there, and if right for you then switch and save.’

Ofcom’s consumer guidance, including advice on switching and social tariffs, is available at ofcom.org.uk/onyourside. For anyone currently out of contract, the regulator’s message is straightforward: the process of moving to a cheaper deal now requires just one phone call, to the new provider, not two.