Switching & contracts

Leaving broadband early: exit fees and free exits

Leaving broadband early: exit fees and free exits

The short answer

If you end a broadband contract before its minimum term is up, your provider can usually charge an early termination charge, also called an exit fee or cancellation fee (Virgin Media's help pages say early disconnection fee). It must be set out in the contract summary you were given before you signed, and Ofcom, the UK communications regulator, expects it to be based on the payments left on your minimum term minus the costs your provider saves by no longer serving you.

You can leave without a fee in the 14-day cooling-off period if you signed up by phone or online, after a contract change that isn't to your benefit (including a price rise your contract didn't allow for), when your speed is below your guaranteed minimum and can't be fixed, and once your minimum term has ended. Moving home or an Armed Forces posting can get a fee reduced or waived; if money is tight, you can usually move to a cheaper plan or social tariff with your provider without a fee.

Checked October 2026. The Citizens Advice guidance we quote is its advice for England.

How an early exit fee is worked out

Every provider has its own formula, but all start from the part of your minimum term still to run when your contract ends. What differs is what they take off for costs they no longer have, and whether they add VAT.

What the rules say

  • The fee must be in your contract summary. Since June 2022, providers have had to give you a short contract summary before you sign, and its "Duration, renewal and termination" section must state the contract length and the fees due if you end it early. The summary then becomes part of your contract and can't be changed unless you both expressly agree.
  • Leaving must not be made off-putting. Ofcom's General Conditions, the rules every provider must follow, say the conditions and procedures for ending a contract must not act as a disincentive to changing provider (condition C1.8 today; GC 9.3 in the 2015 rules).
  • The fee should reflect costs saved. Ofcom's guidance on unfair terms, as described in a 2020 Competition Appeal Tribunal judgment, lets providers base exit fees on the part of the minimum term outstanding, but expects a reasonable pre-estimate of the costs they save, the losses they can avoid and the benefit of being paid early. Ofcom is likely to regard terms that charge more as unfair.

In November 2018 Ofcom fined EE £6.3m and Virgin Media £7m for overcharging customers on discounted deals who left early, and for not making exit charges clear enough. EE had worked out the fees of around 400,000 mobile customers from the full, undiscounted monthly price rather than the discounted price they paid; almost 82,000 Virgin Media broadband customers were overcharged in a similar way.

How some major providers calculate it

These are the methods providers describe in their help pages or terms. We've left out amounts, which depend on your package, price and time left.

Provider

How it says the fee is worked out

BT

The monthly price multiplied by the months left on each service contract, plus VAT. Minimum periods are usually 12, 18 or 24 months.

EE

Outstanding charges excluding VAT, allowing for any recurring discount; minus costs EE saves (such as wholesale costs) and an amount for being paid early; then VAT added.

Sky

Its broadband terms say the fee won't be more than the charges for the rest of the minimum term, less costs Sky saves (including the cost of no longer providing the product) and less the benefit of being paid early.

TalkTalk

A set amount for each month left, which varies by package.

Hyperoptic

The remaining payments minus the costs it saves.

POP Telecom

Will not exceed the remaining monthly charges minus the costs it saves.

Some methods deduct costs saved and some, as described, don't, so the same months left can mean quite different fees. BT works its fee out per service contract, so if you added TV or another service partway through, check each end date. Providers can change methods for newer contracts, so your own contract summary always wins.

How to find out what you would pay

  1. Read your contract summary. The "Duration, renewal and termination" section shows your minimum term and the exit fee or how it's calculated. If you can't find it, ask for a copy. Our guide to the broadband contract summary explains each section.
  2. Find your end date. BT shows it on the My BT home page and app; EE says your contract period is on your bill. Otherwise check your online account or ask.
  3. Ask for a written quote for a specific date. Get it by email or save the webchat transcript, so you have proof if the final bill differs.
  4. Let the switching process tell you. Under One Touch Switch, the home broadband switching process used since 12 September 2024, you contact only your new provider. Your current provider then automatically sends you switching information, including any early termination charge and the effect on other services you have with it, before you confirm.

Switching rather than cancelling has another advantage: your old provider must keep your service running until the new one is live, then end your contract automatically, and residential customers don't pay notice-period charges beyond the switch date. That matters with providers such as BT, which asks for 30 days' notice if you cancel. Our guide to switching broadband providers walks through the process.

If you were never given a contract summary, say so. Ofcom has said that without the required contract summary and contract information the contract is not binding on the customer, so an exit fee should not be payable. After Ofcom fined BT £2.8 million in 2024 because EE and Plusnet hadn't given about 1.1 million customers these documents, BT refunded or credited £18 million (reported July 2025).

Checking the figure is right

  • Is it based on what you actually pay? On a discounted monthly price, the fee should start from that, not the full price: the point at the heart of the 2018 EE and Virgin Media cases.
  • Has anything come off for costs saved and early payment, if your terms say it should?
  • Is the end date right? No fee is due for months after your minimum term.
  • Are bundled services counted correctly, each with its own end date?
  • Does a free exit apply? Check the next section before accepting any fee.

If the fee looks wrong, complain to your provider and keep a record of every contact. If it isn't resolved, you can take it to your provider's alternative dispute resolution (ADR) scheme, an independent, free service that looks at both sides and decides. For complaints first raised on or after 8 April 2026 you can go to ADR six weeks after you first told your provider (eight weeks for complaints first raised before that date), or straight away if the provider sends you a deadlock letter saying it can't do any more. See our guides to disputing a broadband bill and complaining about your broadband provider.

When you can leave without paying an exit fee

These are the main situations in which you may be able to leave without a fee. Citizens Advice lists four of them: the cooling-off period, some price rises, slow speeds and a contract that has ended. The right to leave over a contract change comes from Ofcom's General Conditions.

1. You're within the 14-day cooling-off period

If you signed up by phone or online, the Consumer Contracts Regulations let you cancel without giving a reason within 14 days after the day you entered the contract. You'll probably pay for anything already used, and there's no legal cooling-off right if you signed up in person, though Citizens Advice says it's worth asking. If you cancel by letter or email, the contract is cancelled from the date you send it, so keep a copy. Our guide to the broadband cooling-off period has the detail.

2. Your provider changes your contract in a way that isn't to your benefit

Since 17 June 2022, providers must give you at least a month's notice in a lasting form, such as an email or letter, of any contract change unless it's solely to your benefit, purely administrative or required by law. The notice must tell you that you can end the contract without an early termination charge, and you have one month from the notice to do so. The right covers contracts bundled with it too.

The old "material detriment" test has gone, so this covers almost any change that isn't to your benefit, such as a rise in the paper-bill charge (ISPreview's example). If you leave this way, the provider can charge only for service up to your leaving date, plus a fee for any bundled equipment you choose to keep. Our guide to contract changes and your rights explains which changes count.

3. A price rise that your contract didn't allow for

This is where people most often assume they can leave free when they can't. If your contract already says the price will go up each year, the rise is part of what you agreed. Contracts started on or after 17 January 2025 must say exactly how much, in pounds and pence; older ones may use a percentage or inflation. Virgin Media, for example, says that because its annual price adjustment is in its terms, it doesn't give a right to cancel during the minimum period without an early disconnection fee. Citizens Advice adds that you can't leave free over a rise you were told about at the start, such as after some discounted months.

If your terms don't allow the rise and your provider raises the price anyway, that is a contract change that isn't to your benefit, so the section above applies: at least a month's written notice, then one month from the notice to leave without an early termination charge. Citizens Advice describes it as 30 days' notice and 30 days to cancel. Contact your provider within that window, say you're cancelling because of the price rise, and keep a copy. Our guide to mid-contract price rises explains the 2025 rule.

4. Your speed is below your minimum guarantee and isn't fixed

For contracts that started on or after 1 March 2019, ask your provider for your Minimum Guaranteed Access Line Speed (MGALS), the lowest speed it guaranteed for your line, and check on Ofcom's website whether it has signed Ofcom's voluntary codes of practice on broadband speeds. If it has and your speed is below the MGALS, give it your test results: it then has one month to fix the problem. If it can't, you can cancel without a fee, and switch any TV, mobile or home phone in the same deal without a fee too.

Some providers' own guarantees set their own rules. Sky broadband and NOW broadband say that if the download speed to your Sky Hub drops below your guaranteed minimum for three consecutive days or more, you can leave your broadband and Talk (calls) contracts without early termination charges, either then or within 30 days of them confirming the problem can't be resolved. Total loss of service and major outages don't count towards the three days, and speed checks must be done with Sky's service checker, the My Sky app or a service adviser. EE broadband says you can leave without exit fees if speeds fall below your plan's guarantee and it can't fix them.

If your provider hasn't signed the codes, Citizens Advice says it doesn't have to act, but you can ask for a discount or for the fee to be waived. Either way, ask which speed tests your provider accepts, test on several days and at different times, and save each result. Our broadband speed test helps you keep your own record. See our guide to the broadband minimum speed guarantee for more.

5. Your minimum term has ended

Once the fixed minimum term has passed, there's no early termination charge; you just give the notice your contract asks for, or switch and let the new provider handle it. Citizens Advice is clear about the flip side: if none of its four situations (cooling-off, a price rise, slow internet, an ended contract) applies, you probably can't cancel without a fee. The contract-change right above is the other main exception. If you'd like to be able to leave at short notice next time, see our guide to rolling monthly broadband contracts.

Free exits at a glance

Situation

What has to happen

Time limit

Cooling-off

You signed up by phone or online

14 days after the day you entered the contract

Contract change not to your benefit

Your provider notifies a change

One month from the notice

Price rise your terms don't allow

Counts as a contract change not to your benefit

One month from the notice

Speed below your MGALS

Contract from 1 March 2019; provider signed Ofcom's codes and can't fix it

After the month to fix

Minimum term ended

Your fixed term has passed

Any time, with your contract's notice

When a fee may be reduced or waived

These situations don't give you a general legal right to leave free, but they're worth raising: some providers' terms or commitments cut or drop the fee, and in other cases there may be a cheaper way to stay.

Moving home

First check whether your provider offers the same service at your new address; if it does, Citizens Advice says you might pay a small fee to move it. If it doesn't, or you're renting somewhere that already includes broadband, you might face a cancellation fee, but explaining your situation may get it reduced or removed.

Some terms are more generous. Sky's broadband terms (from April 2025) say that if a product you take isn't available at your new address, you can end the contract without an early termination charge or pick another product available there. Voneus's terms waive its exit charge if you give 30 days' written notice and move somewhere it doesn't serve. Check what's available at your new address with our broadband deals by area pages, and see our guide to broadband when moving home.

An Armed Forces posting

On 27 March 2017 the government announced that, under the Armed Forces Covenant, BT, Sky, EE, Plusnet, TalkTalk and Virgin Media had committed not to charge Armed Forces personnel cancellation fees for broadband and media packages when posted overseas or to a part of the UK their provider doesn't cover. That announcement is several years old, so confirm the current terms with your provider before relying on it.

Money worries

Citizens Advice says that if your provider has a social tariff, a lower-priced plan for eligible customers, you can move to it at any time without paying, as long as you're the main account holder. Providers that have signed the Telecoms Consumer Charter, published on GOV.UK, commit to let customers in financial difficulty move to cheaper packages without charge or penalty. See our guides to broadband social tariffs and struggling to pay your broadband bill.

Your new provider may help

A few providers offer help with leaving your old contract, but the offers work differently.

  • Hey!Broadband has a Contract Buyout Team. Its buyout offers come as free months or bill credits, depending on the promotion running, and you need to send proof of your current contract to claim.
  • YouFibre offers a contract buy-out contribution towards your old provider's exit fee if you join it for 24 months. You need a final bill that shows the early termination charge as a separate item, in the same name and for the same address as your new service, and it pays you back after you've paid your first YouFibre bill.

Before relying on either, check how much is covered, the evidence needed and any deadline to claim.

If you were switched without agreeing

Being moved to a new provider without your consent is known as slamming, and under One Touch Switch the provider you're switching to must take reasonable steps to prevent it. We haven't found a general rule giving every slammed customer a fee-free exit, but Ofcom has acted where it happened: in November 2021 it fined two small providers £35,000 in total over at least 110 customers switched without consent in 2019, and made them release those customers without charge and refund exit fees paid. Complain to the provider that switched you, and use ADR if it isn't put right. See our guide to broadband switching problems.

Should you leave early or wait?

When no free exit applies, it comes down to a sum; Citizens Advice notes that exit fees can make it better to wait until your contract ends.

  1. Get the exact fee for the date you'd leave, in writing.
  2. Work out what you'd pay your current provider over the months left.
  3. Price the alternative over its full minimum term, including any upfront or set-up costs.
  4. Compare. If the new deal saves more over its term than the fee costs, leaving early can still make sense; if not, set a reminder for your end date.

Example (illustrative): with two months left on a provider that charges the remaining monthly payments, leaving now means paying for those months twice: once as the fee and once to your new provider.

Before deciding, tell your current provider you're thinking of switching; Citizens Advice says this may bring a cheaper offer. Get any offer in writing and check whether accepting it starts a new minimum term. Then use our broadband deals comparison to see live deals at your postcode from our comparison partner. We don't switch you ourselves: you sign up with the new provider.

Broadband exit fee FAQs

Do I always have to pay an exit fee if I leave my broadband contract early?

No. You can leave without an exit fee within 14 days if you signed up by phone or online, within a month of being told about a contract change that isn't to your benefit (including a price rise your contract didn't allow for), if your speed falls below your guaranteed minimum and isn't fixed (with providers that have signed Ofcom's codes), and once your minimum term has ended. Otherwise a fee usually applies.

How is a broadband early termination charge calculated?

It starts from the payments left on your minimum term. Ofcom's guidance expects providers to take off a reasonable estimate of the costs they save and the benefit of being paid early. Methods vary: EE and Sky deduct costs saved, while BT charges the monthly price for each month left plus VAT. Your contract summary shows the method for your contract.

Can I leave my broadband contract without a fee if the price goes up?

Only if the rise wasn't allowed for in your contract. If your terms already set out an annual rise, or you were told at the start that the price would go up, you can't leave free because of it. If they don't and your provider raises the price, that counts as a contract change not to your benefit: you should get at least a month's notice and can leave without a fee within a month of it.

Do I have to pay an exit fee if I move house?

Usually not if your provider offers the same service at your new address and you take it with you, although Citizens Advice says there may be a small fee to move it. If it doesn't serve your new home, a cancellation fee may apply, but explaining your situation may get it reduced or removed. Some providers' terms, such as Sky's and Voneus's, let you leave without the fee in that situation.

Will my new provider pay my exit fee?

Not usually in full, and offers differ. YouFibre offers a buy-out contribution towards your old provider's exit fee if you join for 24 months and send a final bill showing the charge. Hey!Broadband's buyout offers come as free months or bill credits, and it asks for proof of your current contract. Check the terms before you rely on either.

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