The average cost of broadband has dropped by 36 per cent over the past four years, to an all-time low of £17 a month.

Standalone connections were priced at around £27 per month in January 2004, offering access speeds in thee region of 0.5 Mbit/s. Today the average consumer pays £10 less for 8 Mbit/s.

But despite the falling prices, many households are still paying over the odds for access, according to price comparison site uSwitch. Nearly five million homes spend more than £20 a month for their broadband, wasting £162m every year.

More than half of UK households now have broadband access, and uptake is set to continue in 2008.

“With broadband both the cheapest and the fastest it’s ever been, our love affair with the internet is set to reach great heights this year," said a uSwitch spokesman.

"We predict that prices will stabilise, but customers will be offered more for their money, with companies continuing to increase speeds."