Britons lose GBP £126 a year to hidden fees, study says

iD Mobile has published research claiming Britons lose an average of £126 a year to hidden fees and unexpected charges, as scrutiny of subscription traps and other consumer costs intensifies in the UK.

The survey of 2,000 adults found that 78% regularly pay charges they consider unfair because they feel they have no practical alternative. It also found that 72% believe hidden fees and unclear price rises have worsened over the past five years, while 65% said they feel "mugged off" by British business.

Energy standing charges were the biggest source of frustration, cited by 39% of respondents. Shrinkflation followed at 33%, while airport drop-off charges and the TV licence each drew 30%, ahead of council tax at 29%.

Other commonly cited charges included car parking fees, insurance auto-renewal increases, ticket booking charges, train fares, and fees for sitting next to friends or family on flights. Smaller shares of respondents also pointed to card payment surcharges, plastic bag charges, mobile tariffs, and out-of-bundle costs.

Checkout shock

The findings suggest the issue is shaping consumer behaviour as well as sentiment. Some 38% said they had abandoned an online order after seeing a surprise fee at checkout, while 31% said they had become resigned to such charges because they seemed impossible to avoid.

Two in five respondents said businesses have become better at disguising price rises and extra charges. More than a third said it is now harder to judge whether they are getting good value for money, and 18% admitted they do not understand many of the charges listed on their bills.

Ticketing companies were seen as the worst offenders for hidden fees and unexpected charges, named by 37% of respondents, followed by energy providers at 33% and insurers at 28%.

Mobile networks were not far behind, with 26% identifying them as one of the sectors most associated with surprise costs. Among mobile customers, 55% said an unexpected charge on their bill had caught them out, and 32% said they were not confident they understood everything they were paying for, including roaming and add-ons.

Regional picture

Scotland emerged as the region where consumers felt most affected, with respondents there estimating that hidden fees and unclear charges cost them £146.70 a year. London followed at £139.30, while the North West of England was the least affected region, at £19.40 below the national average.

The study also included examples of charges consumers said had caused the most frustration. One respondent described booking a hotel room for £90 a night, only to face a £25-a-night resort amenity fee at checkout. Another said a £3.50 dessert ordered through a delivery app rose to more than £12 once service, small-order, and delivery fees were added.

A third respondent pointed to ticketing charges, saying the extra costs "ended up almost costing the same as the tickets". The examples reflect a broader pattern in which the advertised price and final bill can diverge sharply, especially in travel, hospitality, and online ordering.

Industry campaign

The research accompanies a new iD Mobile marketing campaign called Mugsville, which presents a fictional town built around everyday charges and price increases. The company is using the campaign to tap into wider frustration over surprise costs in household bills, travel, and online purchases.

"Hidden fees and surprise charges have become something many of us simply expect to encounter, whether we're booking travel, paying household bills, or shopping online. Our research shows consumers feel increasingly resigned to paying more and getting less in return, and most of us have simply stopped questioning it. That's exactly the world we're exposing with Mugsville: a place where hidden fees or high prices are just 'the norm'. At iD Mobile, we believe Britain deserves better, which is why we ensure our plans aren't just great value for money, but also come with added benefits you'll actually use - like Inclusive Roaming in 50 destinations, free Data Rollover, and 5G with no speed limitations as standard on all our monthly plans," said Lewis Henry, Director of Customer & Marketing at iD Mobile.

Alongside the figures on hidden charges, iD Mobile said its customers save an average of £310 a year compared with the four largest mobile networks, based on its own comparison of like-for-like 24-month phone deals. Currys own iD Mobile and operates as a mobile virtual network on Three's infrastructure.

The survey found that if consumers kept the money they believe is lost to hidden charges, 47% would put it into savings, 30% would use it for household bills, and 23% would build an emergency fund.