Exit fees and setup fees: what they mean

Last reviewed: 22 March 2026

Short answer: if your broadband contract has ended and you are out of contract, you can usually switch without paying an exit fee. If you leave during your minimum term, your provider can charge an early termination fee, typically the remaining monthly payments or a proportion of them. Setup fees are separate one-off charges applied by your new provider when you start a deal, and they vary from nothing to around £50 depending on the package and any current promotions.

At a glance

Out-of-contract customers can switch without early termination charges.
In-contract customers may face exit fees based on remaining months left on the deal.
Setup fees are charged by your new provider and are independent of exit fees.
Always calculate total first-year cost, monthly price plus all one-off fees, before committing.
Mid-contract price rises above the rate stated in your contract may give you the right to leave penalty-free.

Types of fees explained

Broadband providers can charge several different fees when you leave, join, or set up a new service. The table below breaks down each type so you know exactly what to look for when comparing deals.

Fee type	When it applies	Typical range	How to check
Early termination / exit fee	Leaving before your minimum contract term ends.	£0 – £300+, depending on remaining months and monthly price.	Log in to your provider account or call them to confirm your contract end date and the exact charge.
Cease / disconnection fee	Some providers charge a small administrative fee to close the account, even out of contract.	£0 – £65, though many providers have removed this fee.	Check the “leaving us” or “cancellation” section of your provider’s terms.
Setup / activation fee	Starting a new broadband contract. Covers account creation and line configuration.	£0 – £50. Often waived during promotions.	Shown on the order summary page before you confirm. Compare net cost after any promotional waiver.
Installation / engineer fee	When physical work is needed, for example, running new fibre cabling into your property.	£0 – £60 for standard installs; non-standard builds may cost more.	Enter your postcode on the provider’s site to see whether self-install is available or an engineer visit is required.
Equipment delivery fee	Shipping the router and any other hardware to your address.	£0 – £10. Many providers include free delivery.	Listed in the order summary alongside setup fees.

How to check your current fees

Before you start comparing new deals, confirm what you owe (if anything) on your existing contract. Follow these steps:

Find your contract end date. Log in to your provider’s app or online account. Look for “My plan”, “Contract details”, or similar. The end date tells you whether you are still within your minimum term.
Check early termination charges. If you are in contract, the same section usually shows the fee for leaving early. It is typically calculated as the remaining monthly payments, sometimes discounted. Your latest bill may also include this figure.
Look for cease or disconnection fees. Even out-of-contract customers may face a small administrative charge with some providers. Check the terms and conditions or ask via live chat.
Request a written summary. If you cannot find clear information online, call your provider and ask them to confirm all charges in writing (email or letter). You are entitled to this under Ofcom’s General Conditions.
Note any equipment return requirements. Some providers require you to return the router or set-top box within a set period. Failure to do so can result in a separate equipment charge, typically £30 – £50.

Can you avoid exit fees?

In several common scenarios, you can switch without paying an early termination charge:

You are out of contract. Once your minimum term has ended, you move to a rolling monthly arrangement. You can leave with 30 days’ notice (or less under One Touch Switch) and no exit fee. This is the simplest and most common way to avoid charges.
Your speed is below the minimum guarantee. Providers must give you a minimum guaranteed speed when you sign up. If your actual speed consistently falls below this level and the provider cannot resolve it, you have the right to exit the contract without penalty. Contact your provider, reference their speed guarantee, and ask for a resolution or penalty-free release.
Mid-contract price rise above the contractual rate. If your provider increases the price beyond what was specified in your contract terms, for example, above a stated CPI + percentage formula, you may have the right to leave without paying an exit fee. You typically have a short window (often 30 days from notification) to exercise this right. See our in-contract price rises guide for details on each major provider’s approach in 2026.
Service failure or repeated faults. Persistent outages or unresolved faults can give you grounds to exit under the provider’s complaints process or through the relevant ombudsman scheme. Document every fault and keep records of contact with the provider.
Cooling-off period. If you have recently signed a new contract online or by phone, the Consumer Contracts Regulations 2013 give you 14 days to cancel. If service has already started during that period, you may owe a proportionate charge for days used, but you will not face the full early termination fee.

How setup fees affect total deal value

Headline monthly prices are easy to compare, but they do not tell the whole story. A deal advertised at £25 per month with a £40 setup fee costs more in the first year than a deal at £27 per month with no setup fee. To compare fairly:

Calculate total first-year cost: (monthly price × 12) + setup fee + any delivery or installation fee. For example, £25 × 12 + £40 = £340. Compare this against £27 × 12 + £0 = £324.
Factor in cashback or bill credits. Some deals include an upfront cost but offset it with a cashback payment or bill credit after a qualifying period. Subtract verified credits from the total.
Consider the full contract length. On a 24-month deal, a one-off £40 fee is spread more thinly and has less impact on the effective monthly cost than on a 12-month deal.
Watch for promotional waivers. Providers frequently waive setup fees during seasonal sales or when you order online. If a fee is currently showing, check whether a promotion is due soon or whether an existing customer retention offer could remove it.

Our guide to saving money on broadband covers more ways to reduce total cost.

Common questions

What happens if I do not pay an exit fee?

Your provider can pursue the debt through their collections process, which may involve passing it to a debt recovery agency and reporting it to credit reference agencies. This can affect your credit file. If you believe the fee is unfair, raise a formal complaint with the provider first, then escalate to the relevant ombudsman (CISAS or the Communications Ombudsman) if unresolved.

Do exit fees apply if I switch using One Touch Switch?

Yes. One Touch Switch simplifies the switching process, you only need to contact your new provider, but it does not waive any early termination charges on your existing contract. If you are still within your minimum term, the exit fee applies regardless of how you switch. See our One Touch Switch guide for full details on the process.

Can I negotiate to have setup fees removed?

Sometimes. If you are an existing customer re-contracting, providers often waive setup fees as part of a retention deal. New customers may find setup fees removed during promotional periods or by ordering online rather than by phone. It is always worth asking via live chat or phone before placing an order.

Are exit fees different for business broadband?

Business contracts often have different terms, including longer minimum periods and higher exit charges. Consumer protection rules such as the 14-day cooling-off period and Ofcom’s switching regulations apply primarily to residential customers and micro-businesses. Check your specific business contract terms. See our business broadband page for more.

Do I get a refund on setup fees if I cancel during cooling off?

If you cancel within the 14-day cooling-off period before the service has been activated, you should receive a full refund of any setup fee paid. If the service has already started, the provider may retain a proportionate amount for the service used. Check the provider’s specific cancellation terms, as policies can vary.

What to do next

Now you understand exit and setup fees, take the next step:

Check how 2026 price rises affect your right to leave, you may be able to exit penalty-free.
Work through the broadband switch checklist to make sure you have covered every step before ordering.
Read ways to save money on broadband to reduce your total cost beyond just avoiding fees.
Compare broadband deals by postcode to see what is available at your address.

Compare broadband deals by postcode

Source note: fee structures and consumer rights referenced against Ofcom’s General Conditions of Entitlement (GC C7) and published provider terms. Last checked March 2026.