" £22.50 a month package is still in place..oddly though they say i have no contract with them even though they habeen taking my money and supplying my broadband since about 2001."
I would start by asking them what it is you're paying £22.50/month for if there is no contract in place. So many companies carry on taking payments by Direct Debit unless you cancel it, irrespective of whether or not they are entitled to the ongoing payments.
It is usual for the ISP to provide you with the hardware to get online - originally with ADSL this was a USB Modem, these days it is a combined wireless Modem/Router. If BT are actually your ISP, they should replace their faulty hardware.