Broadband providers are paying people to end contracts early but is it worth it?

Customers facing rising broadband bills could have a way out of higher contracts and get cancellation fees paid for them.

Broadband providers including industry heavyweights Sky and EE are offering to pay cancellation fees for customers who are still within contract in an attempt to convince them to switch to lower priced deals.

Sky, EE, YouFibre and GoFibre all offer incentives when you switch broadband even if you are still in contract with your current broadband provider.

EE and YouFibre are offering up to £300 when you switch to their full fibre broadband, while Sky and GoFibre are offering £200 to cover switching costs.

The deal works the same way for each broadband provider offering the cashback amount. Customers can ask the new provider to switch and Sky, EE and others will simply contact your current broadband provider to cancel your contract and switch to theirs.

However, while they are offering up to £300 to switch there is a catch. You will have to pay your cancellation fee yourself before claiming back the credit from your new provider. They typically request a copy of your final bill with the cancellation fee.

Once you have shown your new provider they will provide the money as credit on your bill - meaning you can get more than six months of free broadband on your new contract once your credit is applied.

The credit can cover a longer period depending on the broadband package you choose.

Sky’s cheapest broadband package for full fibre - broadband that delivers full fibre capacity into your home instead of using slower copper wiring - costs just £25 for the ‘75mb/s’ package. You can upgrade that to 100mb/s broadband for an extra £1 a month and the fastest 900mb/s option is £42 online only here.

EE’s slowest broadband is the 74mb/s option but it is more expensive than Sky at £26.99 per month. The 900mb/s option is cheaper at £38.99, meaning high bandwidth users can get ultra-fast broadband cheaper with the EE option. You can also get 1.6gb/s broadband at EE for £69.99 if you need the fastest, most capable broadband for multiple devices and high end streaming and gaming.

There is a way to get even cheaper broadband and still take advantage of the £300 credit offer. YouFibre is offering 150mb/s broadband for just £23.99, while 900mb/s broadband is £33.99. YouFibre also promises no in-contract price rises, which will happen each year with both Sky and EE.