MILLIONS of homes across the UK are paying too much for their broadband due to a common mistake.

A new study by Go Compare found that 9.5 million households are paying for higher prices. high speed speeds as necessary.

The majority of Brits spend between £25 and £29 a month on broadband for top-end speeds, according to the price comparison site. investigation found.

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A little more than a third, or 34% of these users, are overpay on their packages with around £53 million collectively spent each month on unused broadband speeds.

This translates to a staggering £637 million over a year.

The comparison site says those who overpay spend on average £5.58 a month more than they need on their broadband.

That means £66.96 is wasted over 12 months – enough to cover a streamer’s standard Netflix subscription for a year.

Smaller households generally end up paying the most, as they are more likely to need speeds of up to 15Mbps, but only 4% of this group actually pay for such speeds.

One in 10 of these users told Go Compare that they were paying for some of the fastest speeds, above 150 Mbps, although the slowest speeds were sufficient for their use.

As a result, they overspend £9 a month, which equates to £113 wasted every year.

NEED FOR SPEED

So how do you know which broadband speed is best for you?

For small households with just one or two people with simple web browsing needs, basic internet usage of between 10 and 15 Mbps is required.

Smaller households that work from home and regularly stream content will need slightly higher broadband speeds, between 15 and 50 Mbps.

Gamers who want a trouble-free 4K video streaming experience and live in small households will need 50 to 100 Mbps.

Meanwhile, larger households with multiple users, such as a family of four, student accommodation, or places with an excessive number of internet users, will need upwards of 100 Mbps.

TIPS FOR REDUCING COSTS

Once you know the speed needed, there are two options for cost reduction hacks to help you get the best deal.

Firstly, you will need to look for the best deals available which can be easily achieved on price comparison sites like Go Compare, MoneySuperMarket and Uswitch.

Here you can customize your search based on your desired broadband speed, provider and price.

This is where the second cost-cutting measure could come into play.

Based on the results of your comparison research, if there is a good deal but it is from another provider, you can try to negotiate a deal with your current broadband company.

They might be able to match, or even beat, the deals you’ve seen elsewhere.

You can still save a lot of money by renewing your contract rather than accepting the rate you are offered after your transaction.

Knowing what other offers are available on the market can help you make your case to your supplier.

Remember, spending just five minutes on the phone with your provider could save you hundreds of dollars.

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