Many mobile and broadband customers will see their bills increase by 14% from April this year, even if you’re in the middle of a 12 or 24-month contract paying a fixed price.
BT, TalkTalk, Three and Vodafone are among the big telecoms suppliers that are contractually allowed to increase their bills in line with the previous year’s inflation rate, as measured by the consumer prices index (CPI) in December – plus a further 3%-3.9% on top.
Currently, CPI inflation is at 10.5%, with that figure in mind and the 3.9% on top, prices could rise by up to 14.4%.
EE, Three and BT customers will see their bills go up from 31 March.
Price will hike based on February inflation figure
Although suppliers could surprise customers and withhold part of the increase, consumers can start looking forward to a flurry of announcements before April.
Companies have to give customers 30 days’ notice of price increases but have so far most have been tight-lipped as to whether bills will rise by the maximum.
BT has said BT Home Essentials, EE Mobile Basics, Pay-As-You-Go, BT Basic and Home Phone Saver customers won’t see a rise in prices as they are frozen in 2023.
Three customers will only be affected by the price hike if they took out a contract on or after 1 November 2022.
How much you’re already paying for broadband or mobile, will affect how much you will be paying from April.
For example, if you’re paying £50 per month on your phone contract and you’re with EE, your phone bill will go up by £7.05 per month. That’s an extra £84.60 per year.
The UK’s communications regulator, Ofcom, is already facing calls to reduce the amount that Openreach can charge suppliers for wholesale broadband lines that in turn is passed on to customers.
An Ofcom spokesperson said:
“Our rules are clear: everyone must be told upfront about any future price rises before they sign up, and we’re investigating whether phone and broadband firms are sticking to this.
“We’re also concerned about the transparency of inflation-linked price rises in contracts, and how well they are understood. We’re examining this issue to ensure customers’ interests are protected.”