Millions of TalkTalk broadband customers face price rises of up to 11% under new fixed rate system
- TalkTalk is the latest company to announce a new broadband pricing structure
- Like EE and Plusnet, TalkTalk is to increase all its broadband plans by £3 per month
- Customers who are financially vulnerable do not have to pay additional costs
TalkTalk is the latest broadband company to unveil plans to increase fixed rates by up to 11 per cent, hitting customers on cheaper plans the hardest.
New and renewing TalkTalk broadband customers will all pay an extra £3 per month from April 2025, in line with similar price rises from BT, EE, Plusnet and Vodafone.
However, the fixed rate means that customers with the cheapest broadband contracts will see their bills increase the most in percentage terms.
For example, someone on a TalkTalk Fibre 35 plan, paying £26 a month (one of the company’s cheaper offerings), will see their bill increase by 11 per cent.
On the rise: Every broadband company that has announced new price plans has moved to a flat rate of £3 a month. The increase applies to all internet deals that the companies offer.
Someone on one of TalkTalk’s more expensive broadband plans, paying £45 a month, would see a price increase of 7 per cent.
TalkTalk customers who took out a broadband subscription before 12 August will see their bills rise from April 2025 under the current inflation-linked system.
The company currently has approximately 4 million broadband customers.
The broadband provider is currently raising its bills by inflation plus 3.7 percent. With CPI currently at 2 percent, the old rules would likely have meant lower rises next year.
Last month, regulator Ofcom banned inflation-linked price rises from January 17, 2025, saying the hikes came as a surprise to many customers.
Instead, phone and broadband companies were asked to clearly display medium-term price increases in pounds and pence.
But Ofcom didn’t say the price rises had to be low, just clear – and This is Money has revealed just how big those increases are in percentage terms.
Broadband companies are already beginning to switch to the new system ahead of schedule, with many also announcing large price increases.
Ernest Doku of USwitch said: ‘It is important that any price increases are known at the time you sign a contract, and that we move away from unpredictable, inflation-linked increases. However, a fixed pricing model across all packages will be proportionally more restrictive for many customers who are on a lower or mid-priced contract.
‘It is disappointing that providers who announced their changes in preparation for or following Ofcom’s new guidance have all opted to implement blanket increases, as this is not the only way to implement the pounds and pence model.
As other providers consider how to respond to the rule changes from January 2025, we encourage them to consider other models.
‘This may involve offering a fixed price for the entire term of the contract, shorter contracts or smaller price increases that are proportionate to the original contract costs.’
Susie Buckridge, CEO of TalkTalk, said: ‘We remain fully committed to delivering excellent value for money broadband and ensuring our customers have clear visibility of the price they are paying throughout their contract.
‘We are moving from an inflation-linked annual broadband price increase to a flat increase, in line with new Ofcom guidance.
“We believe this will improve transparency and consumers will better understand the change.”
Some TalkTalk customers are exempt from price increases
TalkTalk is unique among broadband providers in that it does not offer social tariffs: cheaper, no-frills contracts where prices do not increase part way through the term.
Instead, TalkTalk promises that financially vulnerable customers will not have to pay any price increases for the duration of their contract.
About a quarter of TalkTalk customers are in this situation.
To qualify, customers must call TalkTalk, who will then make a decision on your situation.
Find the fastest, cheapest broadband – and see if you can save
Broadband, TV and phone subscriptions are notoriously sticky. Customers often let their contracts run for years, while providers raise prices.
But you could get faster broadband, a better TV package and a better phone plan, all while saving money every month.
It always pays to compare prices to see if you can save, especially with the cost of living soaring.
This is Money has teamed up with Broadband Choices to give readers the chance to easily search for the best and cheapest deals on their broadband, mobile and TV.
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