By Emma Lewis,
Some long-await good news for UK broadband customers…Ofcom has intervened to stop providers from raising prices mid-contract due to inflation, meaning those frustrating “nasty surprises” should now be a thing of the past.
What Does This Mean?
Currently a BT or XLN customer but concerned about price hikes? Perhaps you鈥檙e asking yourself 鈥渨hy is my broadband bill so expensive?鈥� or 鈥渉ow can I get money off my broadband bill?鈥�. Maybe it鈥檚 time to switch broadband providers altogether?聽
The decision is yours, but in any case it鈥檚 always worth understanding what your rights as a broadband customer are.
Previously, broadband and mobile companies were allowed to increase customer prices mid-contract based on inflation from March and April, plus an additional 3.9%. They normally used inflation data from December (CPI) or January (RPI) to determine the price hikes. Last year, this meant that price increases ranged from 7.9% to 8.8%. On top of that, customers faced a significant 17.3% rise in 2023, when inflation had reached a 40-year peak. The new rules are designed to stop this from happening.
There is still a downside though. Providers like BT, Sky, Vodafone, EE and TalkTalk can still raise their prices, but now, they will be required to clearly specify any future price increases in pounds and pence from the outset. This, in theory at least, should reduce confusion.
So Why The Changes?
Put simply, many broadband providers used to add extra percentage increases based on inflation. This made it difficult for customers to predict their total costs over the duration of their contracts.
With the new regulations, everything is expected to be more transparent, so you’ll know exactly what you’re committing to from the beginning and no more uncertainty about yearly price increases. These new rules won鈥檛 only impact broadband; mobile networks and pay-TV services like Sky and Virgin Media will also see changes.
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What鈥檚 Happening From April 2025?
In summary:
- On the 17th January 2025, major changes were introduced to the annual price hikes for broadband, mobile phone and paid TV services
- April 2025 will see these new Ofcom regulations come into force
- Price increases can no longer be tied to inflation
- At the point a customer signs a contract, any price rises will be clearly outlined in pounds and pence
- Existing customers will experience monthly bill increases under the previous pricing structure. For millions of BT customers, this means a 6.4% rise in their bills
- New BT broadband customers will face an extra 拢3 charge per month
Out of Contract Already? Remember To Shop Around
If you’re no longer tied to a contract with your broadband provider, make sure you’re not overpaying. Many broadband and mobile companies continue charging their customers after contracts end, often rolling them onto more expensive plans without their consent.
If this is the case for you, you’re free to switch without paying any fees or penalties. This really makes it worth checking if you could save hundreds of pounds by changing providers (comparison sites like MoneySupermarket and Uswitch are particularly popular).
