UK broadband customers face price rises this April (Image: Getty)
subscribers in the UK are being warned about imminent contract price rises after the UK’s latest Consumer Price Index (CPI) change was revealed. The CPI reflects the rate of inflation on the cost of consumer goods in the UK, and services such as broadband connections are subject to annual price rises as a result.
Many providers in Britain apply the rate of inflation to their customers’ bills in April. Given the UK’s year on year CPI has been set at 2.5 percent, it’s now known how much extra broadband billpayers can expect to have added to their monthly bills.
Many of the big broadband providers such as , and raise their prices by adding the CPI rate plus 3.9 percent to bills annually, meaning customers of these firms can expect a 6.4 percent price increase in April.
Price comparison firm Uswitch says the average billpayer can expect to see an increase of £21.99 per year, while £15.90 on average will be added annually to mobile phone contract subscription payments.
Uswitch estimates this will add £28,073,214.83 per month to British broadband subscribers bills in total, with £36,115,122.41 extra per month from mobile phone contracts going to providers.
These price hikes are likely to apply to anyone who purchased a broadband contract before 17 January 2025.
“Under new rules, anyone who signs up for a new broadband deal from 17 January 2025 will instead be on a fixed annual price increase, which isn’t tied to any inflation figures”, .
These new rules are designed to make it clearer to the UK public about any price rises and contracts should offer expected price rises in pounds and pence. Uswitch provided Express.co.uk with a list of the dates some UK internet providers brought in these new pound and pence rules:
- BT/EE/Plusnet – 1 April 2024
- Vodafone – 2 July 2024
- TalkTalk – 12 August 2024
- Three – 1 September 2024
- Tesco Mobile – 17 December 2024
- Virgin Media/O2 – 9 January 2025 (previously RPI linked)
“With so many variables, it’s even more important for customers to run a comparison and consider switching to a cheaper deal to avoid overpaying,” said Richard Neudegg, director of regulation at Uswitch. “A new broadband switching process called ‘One Touch Switch’ means changing broadband providers has never been easier.
“According to Ofcom’s latest data, 34 percent of broadband and 37 percent of mobile customers are currently out of contract. Newly out-of-contract customers often face the biggest price hikes where introductory deals expire, so even if you face a price rise in a new contract, you can save significantly more than staying on out-of-contract rates.
“There are also providers who don’t increase their prices mid-contract – including mobile networks like Giffgaff, SMARTY, VOXI, and Lebara, as well as smaller, alternative broadband providers like Hyperoptic and Trooli.”
If you are unsure if or how these price rises affect you, check the start date for your broadband contract or contact your provider directly. Many contracts command a cancellation fee if you want to exit the agreement early.