UK households who have broadband bill warned £113 is missing from bank account

9.5 million households in the UK are paying for broadband speeds they don’t need, to the tune of £113 a year, new data shows. 34 per cent - so over a third - users overpay for their broadband packages, equal to an estimated £53million spent on unused speeds each month.

This translates to a jaw-dropping £637million over the course of a year. Most Brits spend between £25 and £29 per month on their broadband – a fifth said this was the price they paid for their package, according to comparison website GoCompare.

It found around 16 per cent spend slightly less than this, at £20 to £24 per month. A similar percentage (15%) said their prices were in the highest range, paying £40 or more each month. In contrast, just 1 per cent said their broadband price is in the lowest bracket of less than £10.

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Older users are the most likely to pay the highest prices for their broadband, as 18% of those aged 40-54 said they spend over £39 per month on their broadband, as well as a further 17% of those aged over 54. Just 7% of under-25s pay these prices.

Younger Brits are more likely to pay less for their broadband, with 5% of this age group spending under £10 per month, compared to only 1.5% of over 54s. Matt Sanders, broadband expert at Go.Compare, commented: “Our latest research suggests that a large chunk of the country is spending more than it needs to on broadband, which is a real kick in the teeth when times are so tight."

Mr Sanders said: "Everyone’s broadband needs are different, so it can be difficult to know what speeds you actually need. The key factors to keep in mind are the number of people in your household and what you tend to use your broadband for."

He explained: “Certain activities like online gaming and streaming 4K videos need faster speeds to run smoothly, and these speeds will be diluted if multiple devices are using the internet at once. So, if you live alone and only use the internet for general browsing like emails and shopping, you should be able to manage on relatively slow speeds.

“But, if your household is a family of four with multiple devices on the go, you might need to get faster speeds so that everyone can use the internet at once without being slowed down.”