Broadband price rises: Customers face paying 14% more from March

Millions of Britons face broadband bill increases of up to £95 a year as internet companies prepare to increase bills from the end of March.

Typical broadband deals range in price from £22.99 to £55 per month, meaning many homes will pay an extra £3.31 to £7.92 per month for their internet. That works out to between £39.72 and £95.04 a year.

These increases are due to a quirk of broadband bills, many of which can be increased in price midway through the contract.

The big annual increase takes place in March or April, and most providers base their price increases on December’s inflation numbers.

Those figures are known today. According to the Office for National Statistics, the consumer price index (CPI) inflation rate was 10.5 percent in December, up from 10.7 percent in November.

The publication of the inflation figures means that broadband companies have given the go-ahead for price increases for their customers.

This is how the big broadband companies will set their prices this year.

BT – up to 14.4 percent more

There are two possible price increases for BT broadband customers.

If your contract ends before 31 March this year or you sign up after 31 August 2020, BT will increase prices by 14.4 per cent – that’s 10.5 per cent inflation plus 3.9 per cent on top of that. Most BT customers will see this increase on their annual bills from 31 March.

If you get a contract after March 31 of this year, the increase is 10.5 percent, also from March 31.

A spokesperson for BT Consumer said: ‘With the December 2022 CPI rate now announced, we can confirm that our price change will take place on 31 March. We expect the average customer to see their price increase by around £1 per week. This price increase does not apply to all our customers.’

EE – up to 14.4 percent increase

EE has been part of BT since 2016 and broadband customers of both companies are seeing the same inflation price increase plus 3.9 per cent.

The increase of 14.4 percent will take effect from March 31.

Plusnet – up to 14.4 percent increase

Plusnet customers will see 14.4 percent higher bills from March 31 this year.

TalkTalk – up to 14.2 percent increase

TalkTalk broadband customers will see price increases of 10.5 percent plus 3.7 percent from April 1.

TalkTalk called on the communications regulator, Ofcom, to take action to cap bills.

A spokesperson: ‘This regulated CPI-linked price increase can be prevented. There is still time for Ofcom to take action and mitigate the wholesale price increases that lead to these price increases. These are exceptional circumstances, and families and businesses across the UK need the regulator to act.”

Heaven – undecided

A Sky spokesperson said: “We have not announced anything yet this year, but we are giving customers 30 days notice before a possible increase.”

Sky’s price increases are up to the company and are not based on inflation levels.

Virgin Media – undecided

Virgin Media has not yet announced any 2023 price increases for its customers. However, last year the broadband company increased rates by £56 a year for the average customer. Unlike many of its rivals, Virgin does not base price increases on inflation.

Vodafone – undecided

Vodafone has also made no plans for price increases this year. But in 2022, the company increased its rates by CPI plus 3.9 percent.

How to get a good broadband deal

But what a “good deal” looks like to you depends on what you need when it comes to your internet.

If you’re on a tight budget, the price will rise above broadband speed, but for many, including regular home workers, paying a little more for faster internet might be more of a priority.

Not all broadband deals will increase in value, however, as many little-known ‘social tariff deals’ will be frozen in price. These deals are not open to everyone and are usually limited to people on benefits, lower incomes or the elderly.

>> Concerned about broadband costs? Millions of cash-strapped retirees can lower their bills this winter by asking for a “social rate.”

A social tariff is a cheap broadband deal only available to struggling households. These cheap deals exist because since 2020 industry regulator Ofcom has required providers to offer cheap options to the most difficult customers.

Most of these deals require you to be on benefits to be eligible.

It’s worth checking your eligibility, as Ofcom says only 3 per cent of eligible households have a cheaper social rate. Last September, Ofcom said: ‘As a result, 97 per cent miss out on average annual savings of around £144 a year.’

Another advantage of social rates is that there are no exit fees if you leave them before your term ends.