A wide range of bill hikes are set to take place this year (Image: Getty Images)
A crackdown on “confusing” mid-contract price hikes for broadband and mobile services looms, with a ban set to take effect this month, yet experts warn some customers may still suffer “unfair” increases in their bills. Ofcom has decided against relating mid-contract price rises to inflation, insisting that customers must be fully informed of hikes in straightforward “pounds and pence”.
The new rules kick in on January 17. In the past, telecoms companies could tweak prices mid-contract each April based on inflation plus an additional up to 3.9%.
This led to consumers experiencing hefty bill surges in 2023 – with jumps as steep as 17.3% after inflation soared to a 41-year high. However, consumer specialists assert that those on cheaper contracts may not see the benefits of the new policy, particularly since inflation rates have simmered down, registering at 2.6% in November.
Andrew Ferguson, from thinkbroadband.com, told The Sun that a customer on a £24.99 monthly broadband plan facing a fixed £3 increase would actually be worse off than with an inflation-based hike. With a combined increase of 6.5% (the latest inflation figure plus 3.9%), their bill would go up by only £1.62 per month.
On the flip side, for someone with a more expensive £59.99 package, a flat £3 rise would be more favourable than an inflation-linked adjustment, which would see a heftier addition of roughly £3.89 a month to their expenses, according to the
An Ofcom spokesperson had previously commented: “Inflation might be low now, but as we’ve seen in recent years, it can be incredibly volatile, and we don’t think consumers should bear that risk. Our intervention means customers will have certainty and clarity upfront about the prices they will pay, so they can compare offers and select the best deal for them.”
How much more could you pay for your internet and mobile phone from April?
Here’s a rundown per provider…
BT
BT is set to introduce price hikes, with increases across its services starting in April. Mobile users will experience a rise of £1.50 monthly.
TV lovers are set to be charged an additional £2 per month whilst broadband subscribers will see a hike of £3 each month.
Furthermore, BT intends to implement a yearly uptick of 5% on non-package deals. Nevertheless, the telecoms company pledges that financially struggling customers and those enrolled in its Home Essentials tariff will not face these rises.
EE
EE is mirroring BT’s approach, with its mobile customers bracing for a rise of £1.50 every month, TV enthusiasts facing an increase of £2 per month, and broadband clientele expected to pay an additional £3 on their bills. Like BT, EE plans a 5% annual increase for standalone services.
However, EE commits to shielding financially vulnerable customers or holders of the EE Basics plan from these surges.
O2
O2 customers are being warned to brace themselves for a £1.80 increase in their monthly airtime bill from April, although their device repayment fees will remain unchanged. There will be a 75p price rise for mobile broadband and smart watch services; however, those on social tariffs and pay-as-you-go plans will escape the increases.
Plusnet
Plusnet has announced that its customers will face a £3 hike in monthly broadband costs from April onwards. Three mobile customers will see their bills rise this April, with increases ranging from £1 to £1.50 per month, depending on their data allowance.
Those with a data allowance of 4GB or less will see a £1 per month increase. For customers with a data allowance between 5GB and 99GB, the increase will be £1.25 per month, while those with a data allowance of 100GB or more will face an increase of £1.50 per month.
Three
Three broadband customers will be hit with a capped monthly bill rise of £2.
Virgin Media
Virgin Media customers should prepare for a £3.50 per month price rise from each April, although this won’t apply to those on social tariffs.
Vodafone
From April, Vodafone broadband customers will see their bills go up by £3 per month, while mobile phone customers will face price rises of either £1 per month or £1.80 per month, depending on their contract. However, customers identified as financially vulnerable, those on social tariffs, and pay-as-you-go customers, won’t see their prices rise.