Why switching to save money is easier than you might think
Changing your broadband or energy supplier, or even your bank, for a better deal is simpler than it used to be.
Seeking out a better deal from your broadband, pay TV and energy suppliers? While you know it could save hundreds of pounds, you might be wondering if it's worth the hassle.
But often it only needs one call or a couple of clicks - and banks even pay an incentive to people who switch their main current accounts.
Regulators have made the switching process easier in recent years, encouraging people to shop around when cost of living pressures have intensified.
Which deals are the best for you still depends on your circumstances, but here are some of the ways that switching works.
'One touch' broadband switch
Virgin Media has just been fined £28m by regulator Ofcom for repeatedly preventing customers from cancelling contracts.
The communications regulator said it uncovered tactics including agents deliberately hanging up calls, and customers being put on hold "for no reason". Millions of calls from customers were likely to have been mishandled over a three-year period which prevented or delayed them from switching to a better broadband, landline or pay-TV deal.
Anyone switching now shouldn't face the same hassle. Ofcom's One Touch Switch service, launched in 2024, means you only have to contact your new provider, not negotiate with the old one.
Ofcom says you should check whether you are in or out of contract, external, as you could face exit fees.
Some people are motivated to switch because they are fed up with the service from their old supplier.
Many do so in order to save money. So, customers may still decide to call their current provider in order to negotiate a better deal, or ask them to match the offer they could get by switching.
In years gone by, most people would get a bank account early in their adult life and stick with it for decades.
Competition now sees banks try to win over new customers by offering cash to switch - but only if you use their current account as your main account.
Many people have been put off that idea owing to the perceived complication of wages being paid into that account, and direct debits and the like needing to be moved.
The Current Account Switch Service, external now does most of the hard work.
You provide the account and debit card numbers for the account you are leaving to your new bank and choose a date for the move (although it can take seven days).
Behind the scenes, the service will then automatically transfer direct debits and standing orders, move the balance, redirect incoming payments, such as benefits or salaries, and close your old account.
If anything goes wrong, you'll be refunded any interest and charges on your old and new accounts.
If you have an overdraft, you'll have to check the new bank offers to cover this, and the amount owed will then be switched automatically. If not, you'll have to pay it off.
Doing your homework on energy switch
Changing energy supplier and tariff has also been simplified by regulator Ofgem, but there are some key things to check, including:
The way you pay can make a big difference to your bill - paying every month by direct debit is typically £140 a year cheaper than getting a bill every three months
Falling behind on previous bills can prevent you from switching to a new supplier
Decide on whether to move to a fixed tariff, which sets the price per unit of gas and electricity for a period of time, or a variable one
As with broadband, you only need to contact the new supplier if you want to switch.
Ofgem says the new supplier will need, external your postcode, the name of your current energy supplier and your current tariff, the amount you pay for your energy per unit (shown in kilowatt hours - kWh - on your bill), and the amount of energy you use each year. Most of this is on bills or energy statements, and switching services can help.
The switch can take five days, and you have a 14-day cooling off period, during which you can cancel the switch without a fee.
It is important to take meter readings, so you get charged the correct amount by your old and new supplier.
