Households are spending millions of pounds on television channels they never watch, according to a new survey.

The average household spends £199 a year on channels bought as part of a TV, broadband and home phone bundle, the report, jointly commissioned by the Post Office and Freeview, says.

The average monthly spend on a bundle is £49, with £22 of that going on extra TV channels. But the survey says three-quarters of respondents' viewing time goes on free-to-air channels.

It adds that 69% of people are also signing up for broadband speeds that exceed their requirements.

Over-65s, for example, pay an average of £51 a month but they only watch one hour of TV a day on paid-for channels and use the lowest amount of data out of any age group.

Hugh Stacey, head of home phone and broadband services at the Post Office, says: "While bundles can be tempting, this report shows they provide far more than the average person needs and millions of people are clearly paying for services they never use.

"However, by simply doing a bit of extra research before signing up, the savings could be considerable."

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Households overspending