Many broadband, TV and phone contract providers tie their rates to inflation, meaning that consumers could see some price hikes early this year.
However, research has shown that smart switching could save households that are overpaying some £250 on their bills. This is according to the consumer experts at Which?, who surveyed 5,000 customers on their contract switches and how much money they had saved in the process.
TV and broadband customers saved around £162 by switching away, however those who switched away from Sky saved an average of £261 a year.
Those switching away from Virgin Media saved an average of £210. Even customers who did not switch but took the time to haggle with their broadband and TV provider saved an average of £90 a year.
Despite the larger savings, Sky and Virgin Media are two of the providers that do not currently employ mid-contract price rises. However, both regularly make changes on an ad hoc basis – but when this happens, consumers have the right to switch without penalty.
Natalie Hitchins, Which? Head of Home Products and Services, said: "While our findings show that out of contract customers can avoid mid-contract price hikes by switching to a new provider or haggling with their current one, those still signed up to mobile or broadband contracts could be hit with price increases that could be as high as 18 per cent."
There were also big savings to be had for broadband-only customers who switched, with the average being £92 – however BT customers who switched away saved an average of £127.
Broadband customers who haggled saved less on average - £43 - but again customers with some of the bigger providers often saved more.
Alarmingly, the Which? survey revealed that 21 percent of broadband customers and 16 percent of TV and broadband customers did nothing when their contract ended. This could see them potentially facing a hefty increase as they move from an introductory offer to a pricier standard tariff.
Which? are urging providers to carefully assess what level of mid-contract price rises can be justified in the current cost of living crisis.
Natalie added: "Given the unrelenting cost of living crisis, Which? is calling for all providers to allow all customers to exit their contracts penalty free if their tariff does go up mid-contract and that anyone eligible for a social tariff should be allowed to move to one without facing exit fees."
Several providers including Hyperoptic, Utility Warehouse and Zen Internet already protect customers against inflation. They do this by committing to keep customers' prices the same for the duration of their contract.
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