A recent survey of 2,000 adults has found that 38% of UK residents are currently tied into a contract or subscription they believe does not offer good value for money. On average, these overpriced deals are costing Brits an estimated £576 more per year than they should be paying.
Rising Costs and Poor Value
Half of the respondents reported that the price of their contracts keeps rising over time, while 26% feel they receive poor value for the service they actually get. TV packages (32%), energy contracts (26%), and mobile phone contracts (14%) are among the most common deals where people feel they are being ripped off.
Searching for Better Deals
The study, commissioned by Community Fibre, discovered that nearly one in four (23%) believe better alternatives are now available. Additionally, 26% are actively hunting for more affordable deals across all or most of their existing contracts and subscriptions. However, with the typical person signed up to seven contracts or subscriptions, almost one in ten (9%) find it difficult to monitor them all.
Personal finance expert Peter Komolafe has teamed up with Community Fibre to back the launch of a new monthly renewing mobile eSIM, which includes unlimited data, calls, and texts. He said: "With many different long-term contracts on the go, small price rises can add up, leaving people paying more than they realise. That's why it's so important to regularly review, track and monitor your outgoings, so you stay in control of what you're paying for. But most importantly, check you have the best deal and are only paying for what you need."
Preferences for Flexible Contracts
Nearly half of those polled (48%) favour shorter, more adaptable deals, while 41% are looking into bundling services to cut costs. When questioned about mobile phone contracts, 27% wished to move to a more budget-friendly deal, and securing the best price was the chief concern for six in ten people. A further 19% would gladly retain their existing handset and switch to a superior contract, and 15% are watching out for shorter, more flexible choices.
Understanding precisely what their bill will be each month (56%) and having the most data, calls, and texts possible (37%) are also key priorities. According to the OnePoll survey, more than a quarter (26%) have completely forgotten about a paid subscription and continued paying each month without using it. Video services (26%), music subscriptions (15%), and software (13%) are the most overlooked, costing bill payers an estimated £54 before they cancelled.
Peter Komolafe added: "I spoke to lots of people and found many are confused or frustrated by their mobile phone contract, but happy with their handset. Switching to an eSIM like this is a straightforward way to secure unlimited data, calls and texts for a fixed monthly price, with the added flexibility of a rolling contract."
