BT faces a backlash for charging £30 to set up broadband: These are the better deals rivals offer
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BT has faced a backlash after reintroducing a set-up fee across its brands, despite these upfront charges largely disappearing from the market in recent years.
From July 31, the setup fee for new BT or EE customers will be £30, while those signing up for Plusnet will have to fork out £20.
Ernest Doku, a broadband expert at the price comparison website Uswitch, said it's a 'badly misjudged move' and the 'return of a charge that had all but disappeared from broadband bills over the past decade'.
'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,' he added.
As it stands, other providers such as Community Fibre, Sky and Vodafone don't advertise upfront fees.
There are strong offers available right now on broadband, so it's worth comparing them if you're out of contract. You can do this at Uswitch*. Even if you're still locked in to one, it's possible to find providers that may cover the cost of cancelling your existing deal.
Why has BT reintroduced a setup fee?
BT told us that the global demand for electrical components has increased the cost of producing its broadband hubs.
It's absorbed these costs for several years but is now implementing the activation fee to help cover them.
'We have a range of competitive deals and offers for our customers, and existing customers are unaffected,' the spokesperson added.
However, Ernest Doku from Uswitch points out that there's no way for new customers to avoid the fee.
'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,' he said.
Reintroduction: The upfront fee covers the cost of broadband hubs
Are there any deals available with no setup fee?
There are plenty of broadband contracts available that don't have an upfront fee.
According to Uswitch's Doku, some of the deals on offer are the strongest on the market in a long time, so now could be a good time to compare contracts.
'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,' he told us.
According to Uswitch, these were the best value broadband deals on July 31, based on factors including price, provider, speed and extras, such as vouchers. They're all 24-month contracts:
| Provider and package | Monthly cost | Total cost (including mid-contract price rises) | Voucher value |
|---|---|---|---|
| Community Fibre: 1Gbps Full Fibre Broadband | £20 | £480 | £165 |
| Rise Fibre: Full Fibre 900Mbps | £5 a month for six months, then £28 | £622 | N/a |
| Three: 5G BB Unlimited | £15 | £430 | £50 |
| Virgin Media: Gig1 Fibre Broadband | £22.99 | £631.76 | N/a |
| Source: Uswitch, information correct as at 31 July 2026. Deals are subject to change without notice and are dependent on network. | |||
Are you out of contract?
It's worth checking whether your contract has ended. If you're not locked into one, you'll be on a rolling deal – and it's likely that your monthly costs are more expensive than they need to be.
You'll then be able to find a better deal and switch. The new provider should handle this for you.
What if you're still in contract?
If you're still in contract with your existing provider, it's more difficult to slash your costs. Providers usually charge you an exit fee for leaving, based on how long you have left on your contract.
However some providers are advertising that they'll pay up to £300 to cover these charges in the form of credit on your bills.
If you find a tariff that you like, it's worth contacting the new provider to find out how much of your exit fee it could cover.
You just need to watch out for the fact that not all tariffs will be eligible for the full amount – for example less expensive tariffs at lower speeds might only qualify for a lower maximum credit.
You'll also need to provide your final bill from your previous provider, keep track of the deadline to apply by and deal with the new provider directly rather than taking up attractive offers through comparison websites.
This does mean you'll forfeit the lucrative vouchers that are usually available through these websites, so it's worth running the calculations to see what will save you the most money in the long run.
It's even possible that cancelling your contract and sucking up an early termination fee will save you money over 24 months if the deal you switch to is significantly cheaper.