Home phone News

Brits waste £350million on line rental by not switching

Wednesday 28 April, 2010

By Becca Talbot - becca@consumerchoices.co.uk

British consumers are being urged to switch to a cheaper line rental deal to save money on their landline bills after a survey by Homephonechoices.co.uk reveals over 50% have never switched supplier.

Customers are potentially “throwing away” over £350million a year by failing to shop around and switch to a cheaper landline deal, according to the latest Homephonechoices.co.uk customer satisfaction survey.

The survey, which asked 8,418 consumers, found that 53% of British homes have not changed their line rental provider in the last five years, despite the fact that there are cheaper deals available from smaller suppliers.

Michael Phillips, product director at Homephonechoices.co.uk, said: “It is clear that line rental charges are being overlooked by consumers as a means to cut their household bills, yet it’s one of the simplest services to switch and save money on.”

Primus’ Home Phone Saver deal is currently the cheapest line rental in the UK at £8.99 a month, while BT (www.bt.com) - the UK’s largest home phone provider - charges £11.54 a month if you pay by monthly direct debit and receive your bills via email.

Phillips pointed out that consumers now have a wide choice of landline providers to choose from, “with some very reasonable packages available.”

He added: “I would urge anyone who hasn’t switched line rental in over a year to get online and check what deals are available in their area - the savings will be surprising and will soon mount up!”

Here are three top tips from Homephonechoices.co.uk to help you save money on your line rental:

1. Pay by direct debit - Nearly all providers discourage payment by any means other than direct debit and impose punitive charges of anything up to £5 per month for dealing with cheques. The Post Office (www.postoffice.co.uk) accepts payment by various means with no additional charges.
2. Choose paperless billing - Some providers offer savings if you receive your statements online, not by post.
3. Check your small print - If you’re tied to a 12 or 18-month contract, you may be faced with exit fees if you want to switch before the contract term ends. Weight up the savings and charges before making your decision as you may find the savings don’t merit the switch.