BT has faced a backlash after reintroducing a £30 set-up fee across its broadband brands, bringing back upfront charges that had largely disappeared from the market in recent years. From July 31, new customers signing up for BT or EE broadband face a £30 charge, while those joining Plusnet must pay £20.
Ernest Doku, a broadband expert at the price comparison website Uswitch, called the decision a "badly misjudged move" and the "return of a charge that had all but disappeared from broadband bills over the past decade." He added: "At a time where there is continued focus on the cost of living, there should not be a price of entry to saving money on your broadband."
Other major providers, including Community Fibre, Sky and Vodafone, currently do not advertise upfront fees. Strong offers remain available across the market for consumers who are out of contract, and some competing providers may cover the cost of cancelling an existing deal when switching through Uswitch.
Broadband hub costs driving fee reintroduction
BT stated that global demand for electrical components has increased the cost of manufacturing its broadband hubs. A company spokesperson explained that BT had absorbed these costs for several years but is now implementing the activation fee to help cover them. The spokesperson added: "We have a range of competitive deals and offers for our customers, and existing customers are unaffected."
However, Doku pointed out that new customers have no way to avoid the new charge. He said: "If this is about rising costs of kit, customers who already have a router that works should be able to use their own and skip the fee."
Reintroduction: The upfront fee covers the cost of broadband hubs
Alternative deals with no upfront charges
Numerous broadband packages remain available without upfront fees. Doku noted that some current offers are among the strongest on the market in a long time. He said: "Most contracts now include annual price rises set out in pounds and pence - and providers are free to raise those amounts for new customers at any point. Signing up today locks in the current terms for the length of your contract."
According to Uswitch, the best-value 24-month broadband deals on July 31, 2026, based on price, provider, speed and extras, included:
- Community Fibre (1Gbps Full Fibre Broadband): £20 monthly cost, £480 total cost including mid-contract price rises, with a £165 voucher.
- Rise Fibre (Full Fibre 900Mbps): £5 a month for six months, then £28, totaling £622, with no voucher.
- Three (5G BB Unlimited): £15 monthly cost, £430 total cost, with a £50 voucher.
- Virgin Media (Gig1 Fibre Broadband): £22.99 monthly cost, total cost of £631.76, with no voucher.
Uswitch notes that these deals are subject to network availability and can change without notice.
Managing existing contracts and exit fees
Customers whose contracts have ended automatically transition to rolling deals, which are typically more expensive than necessary. In those cases, switching is straightforward and the new provider handles the process. For customers still locked into a contract, providers usually charge an exit fee based on the time remaining. However, some providers advertise that they will pay up to £300 in bill credit to cover these early termination charges.
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To claim exit fee coverage, customers must contact the new provider directly to verify how much of the fee will be covered. Less expensive tariffs at lower speeds may qualify for a lower maximum credit. Customers must present their final bill from their previous provider, meet application deadlines, and deal directly with the new provider rather than booking through comparison websites.
Bypassing comparison sites means forfeiting lucrative vouchers available on those platforms, so consumers should run calculations to determine whether bill credits or comparison vouchers yield greater long-term savings. In some cases, paying an early termination fee to cancel a contract early can still save money over 24 months if the new deal is significantly cheaper. Broadband, TV and phone contracts are notoriously sticky, with customers often allowing deals to run on for years while providers raise prices. Comparing prices remains vital as the cost of living crisis continues, and This is Money has partnered with Uswitch to enable readers to search for broadband, mobile and TV deals.
