How to beat the broadband price hikes
Customers are facing inflation-busting rises – so here is how to find a better deal
Broadband and mobile phone customers are facing above-inflation mid-contract price hikes of up to 8.8% this spring following the latest inflation data.
"Most of the biggest broadband and mobile providers" link annual bill increases to either December's Consumer Prices Index (CPI) or the January Retail Prices Index (RPI) rates of inflation, said MoneySavingExpert.
The January RPI rate – published in February – was 4.9%, "so we know the hikes that all of the major providers will implement".
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Many companies also add around 3%, said uSwitch, which they claim helps "combat rising business costs".
Virgin Media links its price hikes to the "more expensive type of inflation", added the comparison website, at RPI plus 3.9%, while others such as BT, EE, Three and Vodafone use CPI plus 3.9%.
The "inflation-busting" increases will take place from next month until May, said This Is Money. Providers say their "hands are tied" as most of them rely on Openreach's infrastructure and pay a yearly fee, which rises with inflation as well.
To add "insult to injury", said Which?, Virgin Media and O2 raised customer bills by an average of 13.8% and 17.3% respectively last year. Customers of these brands who signed up or renewed contracts since 8 February won't see price increases until April 2025.
Industry regulator Ofcom has announced that it is planning to ban mid-contract price rises but until this happens, there are ways to avoid the price hikes.
Check your contract
Check your terms and conditions, said GoCompare, because if the price "has increased unexpectedly and you are out of contract" you have the right to cancel without "hefty fees".
Also, you don't have to accept a price hike "if it's not part of your contract", added the comparison website.
Shop around
These hikes affect only those people who are in a contract, so if yours has ended then you are "free to leave" without penalties, added MoneySavingExpert.
People can often "save £100s by switching", so it is worth shopping around for the best deal.
Haggle
It may be worth haggling for a better deal if you are out of contract but want to remain with your current provider, said Rest Less.
"Leverage your right to leave penalty-free if you are out of contract," the website added, and they may offer a "better rate to convince you to stay".
Ask for help
Providers are required to support struggling customers.
Speak to your provider, said Which?, if you "have concerns about being able to pay your bills".
Many of the large providers such as BT, Sky and Vodafone have schemes in place, added MoneySavingExpert, "to help customers who've encountered financial problems".
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Marc Shoffman is an NCTJ-qualified award-winning freelance journalist, specialising in business, property and personal finance. He has a BA in multimedia journalism from Bournemouth University and a master’s in financial journalism from City University, London. His career began at FT Business trade publication Financial Adviser, during the 2008 banking crash. In 2013, he moved to MailOnline’s personal finance section This is Money, where he covered topics ranging from mortgages and pensions to investments and even a bit of Bitcoin. Since going freelance in 2016, his work has appeared in MoneyWeek, The Times, The Mail on Sunday and on the i news site.
-
What financial impacts can you expect when the Fed finally cuts rates?
The Explainer The Federal Reserve is poised to slash interest rates in the coming months
By Becca Stanek, The Week US Published
-
When is pet insurance worth it?
The Explainer Decide if it makes more sense to brace for big vet bills or pay a regular premium
By Becca Stanek, The Week US Published
-
Should you fly or drive on your next trip? Here's how to decide.
The Explainer Make the best choice for your wallet
By Becca Stanek, The Week US Published
-
The midyear financial check-in: why it matters and what to review
The Explainer This year is halfway over. Have you checked your finances?
By Becca Stanek, The Week US Published
-
What to do if you're worried about running out of money in retirement
The Explainer Inflation is putting more retirees at risk
By Becca Stanek, The Week US Published
-
4 different budgeting methods — and how to choose one that works
The Explainer Pick something you'll actually stick to
By Becca Stanek, The Week US Published
-
4 tips to have fun this summer without breaking the bank
The Explainer Prices are climbing, so keep your wits about you
By Becca Stanek, The Week US Published
-
How much do you really need to set aside for retirement?
The Explainer Be smart about saving for your golden years
By Becca Stanek, The Week US Published