From this week, a clampdown on “confusing” mid-contract price hikes for broadband and mobile services will take effect, however, some users may still experience “unfair” increases in their bills, experts caution.
Ofcom has implemented a prohibition on basing mid-contract price surges on inflation rates; rather, providers are required to explicitly communicate the exact “pounds and pence” by which bills will go up. This new rule commences on January 17 but only pertains to brand new and renewed contracts.
Previously, under archaic rules, telecom companies could boost prices each April to reflect current inflation rates, adding up to an additional 3.9%. In 2023, many households felt the pinch as bills inflated by as much as 17.3% after inflation rates hit a high not seen in 41 years.
If you’re not updating your contract soon, be aware that your bills can still escalate with inflation.
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Consumer experts have voiced concerns that individuals on economical contracts may find themselves worse off after this overhaul with inflation now on a downturn, currently at 2.6% as of November. Andrew Ferguson, the editor of thinkbroadband.com speaking to The Sun, detailed how a customer spending £24.99 monthly on broadband could face a hike of £3 per month, which exceeds an increase that would be tied to the current rate of inflation, reports the Mirror.
If their bill increased by 6.5% – based on the November inflation figure plus an additional 3.9% – customers would find themselves paying an extra £1.62 a month. However, for those on pricier contracts at £59.99 monthly, a flat £3 hike is actually more economical than an inflation-linked increase, which would add £3.89 to their monthly costs.
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.”
Wondering how much your broadband and mobile bills will climb?
For BT Group (encompassing BT, EE, and Plusnet), if you commenced or renewed your contract from April 10, 2024, onwards, expect your mobile bill to go up by £1.50 a month starting March 31. TV subscribers will see a £2 monthly increase, while broadband users will face a £3 rise.
Additionally, out-of-bundle services will incur a yearly 5% price jump. Those who entered or renewed contracts on or before April 9, 2024, will experience a 6.4% rate hike.
Yet, there’s some relief for certain groups: no price surge for financially vulnerable individuals, landline-only clients, pay-as-you-go users, or those subscribed to BT Home Essentials, EE Mobile Basics, or BT Home Phone Saver plans.
As for Now: the company has yet to disclose its upcoming billing adjustments.
O2: From April, O2 customers will see their airtime bill increase by £1.80 a month, however, their monthly device repayments will remain at a fixed price. Mobile broadband and smart watch customers will face a price rise of 75p.
Customers on the O2 Essential social tariff and pay-as-you-go customers won’t be subject to price increases.
Sky: Sky Mobile users who are out of contract will experience a bill rise of £1.50 a month from February 14, 2025. If you’re still in contract, your bill won’t go up.
Sky has not yet disclosed how much its broadband, TV and home phone packages will increase by.
TalkTalk: TalkTalk has not yet announced how much it is increasing bills by.
Three: If you joined Three on or after September 8, 2024, then your bill will increase this April by between £1 and £1.50 a month, depending on your data allowance. Your bill will rise by £1 a month if your data allowance is 4GB or less, or £1.25 a month if your data allowance is between 5GB and 99GB, or £1.50 a month if your data allowance is 100GB or more.
Three broadband customers will see their monthly bill rise capped at £2 a month. If you joined or renewed between November 1, 2022 and September 7, 2024, your bill will rise by 6.4%.
If you joined or renewed between October 29, 2020 and October 31, 2022, your bill will rise by 4.5%. There is no price rise for people who joined on or before May 28, 2015 and who have not upgraded since.
Virgin Media: If you joined or upgraded on or after January 9, 2025, your broadband, landline or TV package will rise by £3.50 a month from each April. This won’t apply to customers on Essential Broadband or Essential Broadband Plus packages, or Talk Protected phone-only plans.
Vodafone: Vodafone customers who joined or upgraded on or after July 2, 2024 will see their broadband bill rise by £3 a month from April, while mobile phone customers will see their prices rise by either £1 a month or £1.80 a month, depending on their contract. If you joined or upgraded on or before July 1, 2024, your bill will rise by 6.4%.
Customers who are identified as financially vulnerable, are on social tariffs, and pay-as-you-go customers, won’t see their prices rise.