Millions of broadband and mobile customers hit with up to 8.8% price rises
Millions of broadband and mobile customers will be hit with bill rises of up to 8.8% in another cost of living blow for struggling households.
It comes after the latest inflation data, which is used by many telecoms giants to decide mid-contract price rises, was released today. Under current rules, broadband and mobile companies are allowed to increase prices mid-contract in line with inflation, plus up to 3.9% extra on top of this. Most use Consumer Prices Index (CPI) inflation data for December, or Retail Prices Index (RPI) for January to decide their increases.
CPI inflation was last month confirmed to have risen to 4% for the 12 months to December - which will mean broadband and mobile increases of up to 7.9% for some households. RPI data for January was released today and came in at 4.9% - so a total price increase of up to 8.8%.
It comes despite Ofcom announcing it wants to ban "confusing" mid-contract price rises that are linked to inflation - instead, it wants firms to set out increases in "pounds and pence" so customers can better understand future bills. A final outcome from a consultation will be published in the spring, then if the proposals are given the green light, the new rules will come into force four months later.
We've rounded up everything we know so far about how each major provider - including BT, O2, TalkTalk and Virgin - plans to act. But if you’re out of contract and you’re unhappy with the price rises, there are ways to lower your bill.
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BT - 7.9%
BT has confirmed it will increase prices in line with the December CPI figure plus 3.9%, which means households will see their bills rise by 7.9%. This will come into effect from March 31. BT told The Mirror the average increase will be £3 a month.
If you're a landline-only or Home Phone Saver user, your bill will rise by just CPI, so 4%. You won't see your bill increase at all if you're on a BT Basic or Home Essentials social tariff package, as these prices have been frozen.
EE - 7.9%
EE customers will also see their bills rise in line with the December CPI figure plus 3.9%, so an increase of 7.9%, as EE is owned by BT Group. This will also come into effect from March 31.
EE told The Mirror the average increase will be £3 a month. Your bill won't rise if you're a EE Mobile Basics social tariff customer, or if you're on a pay-as-you-go deal.
Now - TBC
Now has yet to confirm how much it will increase broadband and landline bills by.
O2 - 8.8%
O2 uses the January RPI figure plus 3.9% to decide how much to increase bills by, which means price rises of 8.8% from April 1. However, this only applies to the airtime part of your bill - so what you pay for minutes, calls and texts. It does not apply to your device plan.
If you took out your deal with O2 before March 25, 2021, your bill will increase in line with RPI only, so 4.9%. You won't be affected by any price rise if you're a pay-as-you-go customer.
Plusnet - 7.9%
Plusnet is also owned by BT Group, which means customers will also see their bills rise in line with the December CPI figure plus 3.9%, so an increase of 7.9%.
This will also come into effect from March 31. Plusnet told The Mirror the average increase will be less than £2.50 a month.
Shell - 6%
The majority of Shell broadband and landline customers will see prices rise by 6%. This will come into effect from April 1, 2024.
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But if you signed up to your deal on or after January 22, 2024, then you won't be subject to any price rises until April 2025. There will be no price rises for broadband or Phone Essentials users within the 12-month minimum term.
Sky - TBC
Sky has announced it is increasing broadband and TV packages by 6.7%. This will come into force from April 1. This only exception is if you're a Sky Broadband Basics customer, in which case you won't see any price price.
If you're a Sky Mobile customer who is out of contract, your bill will rise by 3% on average from February 14. There are no price rises scheduled for Sky Mobile customers who are still in contract.
TalkTalk - 7.7%
TalkTalk customers will see bills rise by December CPI plus 3.7% - meaning increases of up to 7.7%. This is for most broadband and landline customers and will come into effect from April 1.
If you're an out-of-contract Fixed Price Plus customer, you'll see a smaller increase of just December CPI, so 4%. There will be no increases for Fixed Price Plus and Pre-Pay Saver customers who are still in contract, plus TalkTalk TV add-on users and customers who are considered to be vulnerable.
TalkTalk told The Mirror the average increase will be £2.22 a month.
Three - 7.9%
Three customers will see bills increase in line with the December CPI figure plus 3.9%, so a rise of 7.9%. This will come into force from April 1 and includes most broadband and mobile users.
Three told The Mirror the average increase will be less than £1.50 a month.
Virgin Media - 8.8%
Virgin Media will increase bills by January RPI plus 3.9%, which means an increase of 8.8%. The increase will come into force from April 1.
Virgin said the average increase for customers will be £4.16 a month. Vulnerable customers on Talk Protected, Essential Broadband and Essential Broadband Plus packages will not see their prices change in 2024.
Vodafone - 7.9%
Vodafone is set to increase monthly repayments in line with the December CPI figure plus 3.9%, so a rise of 7.9%. This will come into force from April 1 and includes most mobile users.
How to cut the cost of your broadband and mobile bill
If your mobile or broadband 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.
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.
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