10 January 2023 , 21:22
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Martin Lewis has issued a warning to everyone in charge of paying a broadband bill ahead of huge price rises expected this spring.
The MoneySavingExpert explained how telecom firms could be set to bring in mid-contract price rises equivalent to an increase of 15%.
Many companies hike bills by the rate of Consumer Price Index (CPI) inflation or Retail Price Index (RPI) inflation, plus roughly another 4% on top.
It means families who are already struggling under the cost of living crisis face a huge increase on their internet bill, if price rises are brought in.
Martin explained during his ITV Money Show this evening: “If they enact them this year, and the likelihood is they will, this could mean 15%ish hikes this spring.
Martin Lewis issues 8-week warning to phone users ahead of huge price hikes
Martin Lewis explains how to cut your internet bill (ITV)“This usually happens in April for most of the major broadband providers, which is going to be another hit for many people.
“If you’re paying £40, that’s £6 a month extra. Even switchers’ deals will probably do this but of course, it’s £6 a month extra on £40 or if you pay £20 a month, it’s only £3 a month extra.”
To help lower your costs, Martin urged households to check if they can slash their broadband bills now.
Martin Lewis has issued a broadband warning (ITV)Roughly seven million people are out of contract and are likely paying too much for their internet - as the best deals are typically for new customers.
If you're out of contract, Martin first suggested checking prices elsewhere to see what other deals are available.
Next, call up your current provider and see if you can haggle them down to match the best price you've seen with another company.
A recent MoneySavingExpert poll revealed an over 75% success rate when haggling with TalkTalk, Virgin and Sky, plus “high success rates at many other broadband providers too”.
“Switching... don’t worry about it too much - I can’t promise it will be smooth every time - it’s only two hours-ish of downtime,” he urged.
“It’s your new firm who sorts it out for you and they’ll cancel your old provider. Some of you… don’t want to switch, you like where you are, in which case: haggle.”
Martin continued: “As a loyal customer, the first thing I would do is, I’d get on the phone and I’d say: I’ve seen what you’re charging new customers.
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“I’d make sure you’ve seen what other providers are charging in your area, because it’s postcode dependent… and say I’m not willing to pay that amount, can you offer me a better deal?
“If they say no… you say I want to go through to customer disconnections… this is where they can do the big deals.
“Always be polite and if they don’t give you that price, I would be pretty annoyed and I’d want to ditch and switch and go elsewhere.”
Martin later highlighted some of the cheapest deals right now that are available through comparison websites.
For example, Shell Energy is offering 11Mb broadband for £18.99 a month, or speeds of 38Mb for £21.99 a month.
You then get one month bill credit free with the cheaper deal, plus a £30 Amazon voucher if you go for the higher speed.
Martin also flagged an offer from Vodafone, which is advertising 67Mb broadband for £22 a month, and you get a £105 voucher for Amazon, Tesco, Sainsbury's or M&S.
If you claim certain benefits, you might be eligible for a social broadband tariff. The cheapest social tariff starts at £12 from Vodafone.