28 February 2023 , 15:19
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Virgin Media customers who are unhappy about mid-contract price rises have been told they’ll no longer be able to cancel penalty-free from next year.
The telecoms giant is hiking bills by an average of 13.8% for millions of broadband, TV and home phone users from this April.
But from April 2024, the firm will start to use the Retail Price Index (RPI) measure of inflation - plus 3.9% on top - when deciding how much to raise prices by.
In addition, Virgin Media says it will start to include this price rise within the terms and conditions of customer contracts - meaning you’ll no longer be able to leave penalty-free within 30 days of receiving notice of a bill increase.
These new pricing terms will come into force from April 2024, with the RPI figure to be taken from the February rate of inflation.
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In an email sent to customers, Virgin Media said its new rules apply to any additional add-ons you might have, excluding subscriptions such as Disney+ and Netflix.
It comes after consumer group Which? said customers of telecom firms that don't allow people to leave penalty-free are trapped between choosing huge mid-contract price hikes or exit fees of over £200.
Which? is now urging companies to let customers leave contacts without paying a fee if prices are hiked mid-contract.
The email from Virgin Media to its customers reads: “From April 2024, we are changing our approach so any price rise to your package is always made at the same time every year, and it’ll be linked to the Retail Price Index (RPI) rate of inflation plus an additional 3.9%, so the amount of any increase will be clearer, sooner.
“To do this, we need to change our terms and conditions.”
The email continues: “As this annual price increase is provided for in your terms, there is no right to cancel given for this price increase from April 2024.”
Virgin Media told The Mirror that the RPI measure of inflation is expected to be lower in 2024 than it is today, and said other major providers also use this to determine price rises.
A Virgin Media spokesperson said: “The introduction of inflation-linked price changes, which comes into effect in 2024 when RPI is projected to be at around 1.5%, will give customers clarity and certainty about what to expect from their bills while fuelling the investment required both now and in future.
“We are clearly communicating these changes directly to our customers.”
The update from Virgin Media comes after Ofcom confirmed it was launching an investigation into inflation-linked price rises on phone and broadband contracts.
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The broadcasting watchdog is looking into whether mid-contract prices give customers enough certainty about what they can expect to pay.
Other major providers including BT, EE and Sky have already announced price rises of up to 14.4% for their mobile customers.
How to cut the cost of your broadband and mobile bill
If your mobile bill is about to get more expensive, you might be able to cut costs.
If you're out of contract, you're free to leave and go elsewhere - or maybe you want to haggle down your current provider.
There is also no harm in trying to haggle if you're still in contract.
The first thing you should do, is compare prices elsewhere to see what other deals are available.
You'll normally find SIM-only plans are the cheapest.
You can compare prices by using comparison websites such as MoneySupermarket and Uswitch.
Take a look at how many minutes, texts and how much data you currently use, so you can find similar plans that suit your needs.
You may find you're actually paying too much right now for allowances that you're not using.
When haggling, explain the better deals you've seen elsewhere then ask if the company can match or beat that price.