Seven broadband and mobile providers in the UK have announced that they will be increasing prices by as much as 14.4% in the spring. This increase will help them keep up with inflation (which is above 10% in the UK) but it will further hurt consumers who are facing higher prices right across the board. The providers that are planning to up prices include BT, EE, Plusnet, Shell, TalkTalk, Three, and Vodafone.
The rise in prices has been attributed to an increase in the operating costs caused by regulatory requirements, higher energy prices, and higher network costs. Firms can apparently increase costs like this to keep up with inflation but people out of contract are being urged to shop around on comparison websites to secure a better deal. Under some circumstances, your provider may let you know you can cancel mid-contract without penalty within 30 days but it’s not clear if this will be offered as part of this price increase so just be on the lookout for that.
The confirmed price rises are listed below, there are more expected but information is not available yet:
| Provider | How much prices will rise by | When hikes will come in |
|---|---|---|
| BT | ||
| Broadband and landline users who signed up after 31 August 2020, or who will be out of contract before 31 Mar 23 | 14.4% This is December"s consumer prices index (CPI) figure + 3.9 percentage points | 31 Mar 23 |
| Broadband and landline users who signed up before 1 Sept 20 and who will be in contract after 31 Mar 23 | 10.5% December"s CPI figure | 31 Mar 23 |
| All BT mobile and TV users | 14.4% December"s CPI figure + 3.9 percentage points | 31 Mar 23 |
| Landline-only users, and users on Home Essentials, Basic or Home Phone Saver (which are plans for those receiving benefits) | No price rise | N/A |
| EE | ||
| All broadband, landline and mobile users (barring exclusions below) | 14.4% December"s CPI figure + 3.9 percentage points | 31 Mar 23 |
| Pay-as-you-go users and EE Mobile Basics users (Basics is a plan for those receiving benefits) | No price rise | N/A |
| O2 | ||
| Pay-as-you-go users | No change | N/A |
| Plusnet | ||
| Broadband and landline users who signed up after 6 Oct 20 | 14.4% December"s CPI figure + 3.9 percentage points | 31 Mar 23 |
| Broadband and landline users who signed up before 7 Oct 20 | 14.4% December"s CPI figure + 3.9 percentage points Though this rise will only apply to call costs while within your contract"s fixed term. As soon as your contract ends, prices will rise by 14.4% on your entire bill. | 31 Mar 23 |
| All Plusnet mobile users | 14.4% December"s CPI figure + 3.9 percentage points | 31 Mar 23 |
| Shell | ||
| All broadband and landline users | Up to 13.5% (exact rise TBC) | 1 Apr 23 |
| Sky | ||
| Mobile users who are out of contract | 9% (on average) | 14 Feb 23 |
| Mobile users who are in contract | No price change | N/A |
| TalkTalk | ||
| Broadband and landline users (barring exclusions below) | 14.2% December"s CPI figure + 3.7 percentage points | 1 Apr 23 |
| Fixed Price Plus customers out of minimum contract period | 10.5% December"s CPI figure | 1 Apr 23 |
| TalkTalk TV add-on users | TalkTalk does not use the CPI inflation figures for price rises on its TV package. Last year, it upped prices from £4 a month to £5 a month. So far, it hasn"t confirmed any price changes for this year. | |
| TalkTalk"s "most vulnerable customers" | No price change | N/A |
| Three | ||
| Broadband and mobile users who joined between 29 Oct 20 and 31 Oct 22 | 4.5% | 1 Apr 23 |
| Broadband and mobile users who joined on or after 1 Nov 22 | 14.4% | 1 Apr 23 |
A surprising number of people do not bother to check if they can get a cheaper broadband or mobile deal with another provider. In an article from last August, Neowin reported about Citizens Advice calling for an end to digital loyalty penalties. Citizens Advice cited one shocking example where a woman called Tracey was paying a massive £80 per month for her TV, landline, broadband, and international calls package which she took out in 2006 and has never bothered to switch.
Highlighting the importance of switching, the UK consumer group, Which?, said that customers should haggle or switch providers to save as much as £162 per year on broadband, TV, and mobile contracts. With the increasing cost of living, it"s more likely that people will be looking to switch just to make ends meet.
Source: Money Saving Expert