Millions of TV and broadband customers paying up to £700 a year extra

LOYAL broadband and TV customers are being stung by penalties of up to £690 a year, simply for staying with the same provider.

That's according to new research by Which?, which has surveyed loyal customers to find out how much they pay and then compared this to the cheapest price offered to new users.

Worrying still, is that two in five customers (40 per cent) have stayed with the same provider for more than 10 years, according to new research by Which?.

While three-quarters (77%) of customers admitted to staying with their provider for at least three years.

When it comes the worst offender, Sky got the wooden spoon. Which? says its customers who had not attempted to haggle, were paying £1,050 a year on average.

In comparison, the cheapest combined package the provider offered was available from £360 a year - an eye-watering difference of £690.

Even customers choosing a premium package including faster broadband, extra channels and Sky Sports would pay £780 a year - £270 less.

When it comes to Virgin Media, again Which? found that people pay a penalty for loyalty.

Its loyal users were found to be paying £960 a year on average, while its cheapest deal for new customers was £384 a year - a £576 a year difference.

BT customers are also overpaying. The average loyal user pays £720 a year on average for their broadband and TV bundle.

But a Classic bundle introductory offer with the firm would cost a new customer just under £480 a year -that’s £240 a year less.

Even a Max HD BT package including premium add-ons such as sports and extra channels would set a customer back by £600, still £120 less than what customers told Which? they were paying.

This so-called "loyalty penalty" is currently being monitored by the Competition and Markets Authority (CMA) following a super-complaint made by charity Citizens Advice.

In its response to the complaint, the CMA recommended the Government and regulators crackdown on these harmful business practices and suggests that "targeted price caps" should be put in place to protect the most vulnerable Brits from being overcharged.

Alex Neill, Which? managing director of home products and services, said: "Yet again we’ve found that loyalty doesn’t pay when it comes to your broadband and TV service.

"People will choose their provider often because of a cheap introductory deal and then stay for the content offering.

“However, you shouldn’t accept getting a bad deal, there are potential savings to be made for those who take the time to haggle and even bigger savings for those who switch.”

Sky believes its prices are clearly communicated to customers and adds that once customers are outside of their minimum contract they are free to leave.

A Sky spokesperson said: "Just like Which? Magazine, we have a range of offers for both new and existing customers.”

Meanwhile a spokesperson for BT added: “The majority of customers want and take plans that provide faster broadband speeds than the classic bundle.

"We fully agree that customers should get great value and a service that suits them. We are working to provide even clearer information to our customers about the options available to them throughout the life of their contract.”

Virgin Media didn't want to comment on Which?'s findings.

Sky launched a new loyalty scheme where the longest-serving customers can get free broadband upgrades, Sky Q and early access to TV shows back in 2017.

Why the lowest paid families are being overcharged by £1,900 a year – and how to cut your bills now.

Insurance firms faced a crackdown last year in a bid to help loyal customers who pay up to 70 per cent more.

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