Stop Overpaying! Expert Reveals the Secret to Avoiding 'Loyalty Tax'

Are You Paying a 'Loyalty Tax'? Expert Reveals How to Save Money on Bills Millions of UK consumers may be unknowingly overpaying for essential services like insurance, broadband, and energy. Accountant and tax expert Rachel Harris explains the phenomenon of 'loyalty tax,' where companies quietly raise prices for existing customers while offering lower rates to attract new ones. "You might have been paying loyalty tax for years without even knowing it," says Harris in a recent ITV News video. "Companies reward new customers and quietly overcharge everyone else." Harris cites examples of significant price increases: car insurance potentially rising from £450 to £760, and broadband jumping from £18 to £34 per month. She emphasizes that energy bills also often creep up unnoticed. To combat this, Harris advises setting a reminder 11 months into any policy's term to compare prices. She encourages consumers to use price comparison websites and contact their current providers to negotiate for the same rates offered to new customers. "These companies literally bank on us being too busy to check," Harris warns. By taking proactive steps, consumers can significantly reduce their annual expenditure and avoid the hidden costs of loyalty tax. This simple strategy empowers consumers to take control of their finances and save money on essential services.