Why your broadband costs more than you thought (and how to spot the sneaky maths)
You sign up for an eye-popping broadband deal. Nice. But then come unexpected spring price hikes, followed by a massive ‘lazy tax’ when your plan ends. A major new investigation shows how deep the problem goes across the market – so let’s do the actual maths on what you really pay.
Millions of broadband customers have been clobbered by higher bills thanks to traditional industry pricing systems. A comprehensive new study by MoneySavingExpert.com analysing over 47,000 tariffs has exposed a frustrating reality: despite regulatory changes intended to clean up the market, traditional providers are still pushing through above-inflation bill increases.
In fact, the study found that 100% of standard broadband tariffs they assessed hit customers with above-inflation price rises, leaving the vast majority of consumers worse off.
At giffgaff, we don’t think transparency should just be a warning that you’re about to overpay. We think it’s only fair that you know exactly what you’re paying from day one. That’s why we’re positioning ourselves firmly against these industry norms by promising no mid-term price hikes on our 24-month broadband plans. Your price stays put, giving you total peace of mind and predictable bills for two full years.
The real cost of broadband loyalty
We’ve all been there. You find a broadband deal online with an eye-popping starting price. So far, so normal – like it or not, we’ve all come to expect these introductory deals to evaporate eventually.
But the real sting isn’t the opening offer. It’s the sneaky compounding costs that get quietly stacked up while you’re locked in:
The step-up jump: Once that initial discount ends, your monthly rate jumps up to the provider’s standard price – something to be aware of when calculating your expected savings.
The spring hike: Easy to miss in the legal footnotes is a clause that allows providers to increase your bill every spring. Most of the time they choose a planned add-on of several pounds. This lands unannounced in your inbox, and you can’t easily opt out.
Another spring hike: A 24-month plan means you’ll get two of these. This hike compounds on top of the first one, quietly inflating your monthly bill even further.
The ‘lazy tax’: The day your plan ends, you’re automatically rolled onto an overpriced default tier – punishing you with a massive price spike simply for staying loyal, and forcing you to haggle for a fairer deal. It’s not really about being lazy; it’s about companies charging you for not having the time to switch, shop around or speak up.
When you add those compounding spring inflation hikes to the post-contract ‘lazy tax’, you end up paying far more than you ever bargained for.
Jargon buster: What is ‘CPI + 3.9%’?
CPI (Consumer Price Index) is the government’s official measure of inflation – basically, how much everyday living costs have gone up compared to last year. Many traditional broadband providers have historically used it as a baseline to hike your monthly bill mid-contract, and then add an extra 3.9% just because they can. Since January 2025, providers must now define their planned price rise in pounds and pence, but for consumers on an older contract, you may still be subject to a CPI + 3.9% increase until you reach the end of that contract.
Let’s do the actual maths
To show you how these hidden costs pile up, let’s compare a typical provider’s escalating contract against giffgaff's no-surprises approach over a 24-month period.
| Phase of your plan | Typical provider | giffgaff broadband² |
| Months 1–6 (teaser phase) | £22/month (an eye-catching start) | £5/month (when you switch before 28 Aug) |
| Months 7–12 (standard rate) | £30/month (the expected step-up) | £25/month (standard rate locked in) |
| Months 13–18 (spring hike 1) | £33.50/month (planned price rise) | £25/month (zero annual price hikes) |
| Months 19–24 (spring hike 2) | £37/month (second compounding hike) | £25/month (still no annual price hikes) |
| Total cost (first 24 months) | £735 | £480 |
| Effective monthly cost | £30.63/month | £20/month |
| Months 25+ (out of contract) | £45/month (the ‘lazy tax’ price spike) | £29 monthly rolling (switch or leave anytime) |
Note: The typical provider scenario is based on standard UK industry practices where teaser rates step up after 6 months, compounding mid-contract price hikes are applied every April, and out-of-contract customers are rolled onto standard list pricing.
How giffgaff does things differently
We think you should be in complete control of your spending, which is why we’re rewriting the unfair rules of broadband.
We name our broadband plans exactly what they are – Fast, Faster, and Fastest. Whichever you choose, you get:
No sneaky mid-term price hikes: Your monthly rate is locked in for the entirety of your 24-month plan. No inflation formulas, no spring surprise jumps.
No ‘lazy tax’ after 24 months: We won’t punish you for staying. When your contract’s up, we’ll automatically move you to a zero-commitment monthly rolling plan. Keep it, switch to a new plan, or leave – the choice is yours.
Flexible plans: Sign up and save with a 24-month plan. Or choose monthly rolling to completely avoid early termination charges if you think you might be on the move in the next two years. Either way, switch up your speed and price each month to suit you.
Full fibre for a fiver: Start your switch before 28 August 2026 and pay just £5 a month for your first 6 months on any 24-month plan.³
3 ways to outsmart your next broadband contract
Whether you choose giffgaff or not, here are three tips to keep your finances safe from traditional telecom tricks:
Hunt down the planned price rises
When comparison shopping, always search the small print for a planned price rise. If you see a planned price rise included, keep in mind your bill is legally guaranteed to rise every single April – meaning you’ll pay it twice on any standard 24-month plan.Put an alarm in your calendar for ‘month 24’
Traditional telecom companies rely on you forgetting when your minimum term ends so they can quietly apply the ‘lazy tax’. Set a calendar reminder for 23 months from connection day so you can switch or re-evaluate before that price spike hits your bank account. Some providers, including giffgaff, let you order 3 months in advance – so you could set that reminder for the 21-month mark.Calculate the ‘total cost of contract’
Never choose broadband based on the month-one price alone. Take 10 minutes to multiply the monthly costs across the full 24 months, factoring in the standard rate step-up and two separate spring inflation hikes – plus any installation or setup costs. It’s the only way to find the true, honest deal.
Ready for broadband that plays fair?
No plans that feel like financial traps. No unannounced spring price hikes. Just straightforward, reliable full fibre broadband that lets you stay on autopilot.
See if giffgaff broadband is in your street
¹ The price of the plan you choose will not increase during your minimum term as long as you remain on the same speed plan. If you change plans, including returning to your original plan, the price available for the new plan at the time of the change will apply. Terms and acceptable use policy apply. See giffgaff.com/terms#bb.
² £25/mo on selected plans. 24 mo minimum term applies. Full fibre (FTTP) available in eligible areas only. Speed estimates may vary. Terms and acceptable use policy apply. See giffgaff.com/terms#bb.
³ Order or switch to a 24‑month plan by 28/8/26. £5/mo for 6 months, then from £25 monthly. Full fibre (FTTP) in eligible areas; speeds may vary. Terms and exclusions apply. See giffgaff.com/terms.