UK residents bad at budgeting when it comes to calling costs

Telecoms bills are a major source of confusion for UK residents – according to a new report from the Post Office.

It revealed that the average household using mobile and landline phones is around £79 out when estimating their bills, meaning the UK public appears to have little idea of the real cost of chatting.

The report showed the best budgeters to be the canny Scots, with a combined annual miscalculation of just £58 per household. Londoners languished at the back of the line, with an average miscalculation of £134 per household.

Experts have blamed this inability to accurately budget for telecoms costs on unclear billing processes and surprise hidden charges, as well as people not thinking about the cost before making a call.

Financial expert Jasmine Birtles of moneymagpie.com said: “Budgeting for technologies such as mobile phones can be a bit of a nightmare. In years gone by, telecoms costs were restricted to a single company providing a single telephone line.

“Now, there are so many different products and suppliers out there that we’re overwhelmed by choice and confused by all the options available.

“We don’t seem to be thinking about the cost of communicating. I hear endless tales of people using mobile phone at home – which works out much more expensive than a landline. We are also often unaware of how much calls actually cost, which can really add up for a household using a landline and a number of different mobile telephones, on various price plans.”

Post Office telephony manager Stewart Fox-Mills said: “Too often telecoms bills are confusing, with complex layers of billing and hidden charges. The Post Office aims to provide telecoms services that are easy for people to understand.

”Not only are our bills simple, but our call charges are fully transparent with just one easy tariff.”

“With the Post Office HomePhone service, it couldn’t be easier to move to a reliable and trusted supplier. You can keep your number, make free evening and weekend calls* and all other calls cost just 3 pence per minute.”

The research also showed that people found it easier to estimate their internet bills than other telecoms costs – with the average home connected to the internet miscalculating bills by only £3 per year.

Stewart Fox-Mills said: “These figures demonstrate that since the introduction of broadband, the public has really benefited from the clear pricing structure of internet pricing. This should be a lesson that all telecoms providers can learn from.”

Work is underway by the Post Office to launch a broadband service in the autumn that will compete head to head with the major players in the market by offering a great value for money deal.

The Post Office offers a whole portfolio of telecoms products, characterised by simple clear pricing structures. These include HomePhone, E Top-ups, international phone cards the directory Enquiries service 11 88 55.

HomePhone has already won more than 400,000 customers with the lowest line rental prices of any major provider. To find out more, visit postoffice.co.uk.