How to beat inflation-busting broadband price rises
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Annual broadband price rises will hit households from next week, with some facing more than £100 per year added to their bills
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Customers who are reaching the end of an 18 or 24-month deal – or who are already out of contract – will have faced up to £240 in price hikes on their broadband alone since they originally signed on the dotted line
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The regulator, Ofcom, has been consulting on a proposal to ban inflation-linked mid-contract price rises altogether and is expected to publish its decision this spring.
Broadband and TV customers are facing price rises from next week, with some customers expected to pay inflation-busting hikes costing up to £105 extra per year.
Some of the UK’s biggest broadband companies, including the likes of BT, EE, Virgin Media, TalkTalk, Sky and Vodafone all have incoming price rises, but customers who are out of contract can still avoid them by switching to a new deal. Some providers have already committed to making sure that customers signing up to a new deal now won’t be affected by these increases.
Ofcom announced a consultation in December 2023 with proposals to ban providers from linking their price rises to rates of inflation, following successive years of costly bill increases.
Customers who are facing the second price rise of their deal, or those who have already fallen out of contract, will feel this the most. Based on the inflation-linked price rises of 2023, and now 2024, a customer who took out a modest deal of £25 per month before April 2023 will have seen £70 added to their bill over the two years. Someone who took out a faster, more premium deal at £50 per month has faced a whopping £140 being added to their deal since they signed on the dotted line.
The broadband experts at price comparison site Broadband Genie are calling on consumers to check their contract to find out if they will be affected by these hikes.
A household currently paying for a cheaper superfast deal, such as the BT Fibre 2 which cost £35.99 per month in November 2023, will see an annual price rise of £34 per year. Meanwhile, more premium broadband packages, such as Virgin Media’s Gig1 Fibre Broadband at £45 per month, will see a price rise of £47.52 per year.
The UK’s biggest broadband providers and their price rises
|
Provider |
% increase |
Increase date |
Estimated price increase |
| BT Broadband |
7.9% |
31st March 2024 |
CPI rate + 3.9% |
| Community Fibre |
6.9% |
1st April 2024 |
CPI rate + 2.9% |
| EE Broadband |
7.9% |
31st March 2024 |
CPI rate + 3.9% |
| Gigaclear |
7.5% |
October 2024 |
CPI rate + 3.5% |
| Plusnet |
7.9% |
31st March 2024 |
CPI rate + 3.9% |
| Shell Broadband |
6% |
1st April 2024 |
CPI rate + 2% * |
| Sky Broadband |
6.7% (average) |
1st April 2024 |
No set annual price rises |
| TalkTalk Broadband |
7.7% |
1st April 2024 |
CPI rate + 3.7% |
| Three Broadband |
7.9% |
1st April 2024 |
CPI rate + 3.9% |
| Virgin Media Broadband ** |
8.8% |
1st April 2024 |
RPI rate + 3.9% |
| Vodafone |
7.9% |
1st April 2024 |
CPI rate + 3.9% |
Source: Broadband Genie
To help broadband customers save ahead of the upcoming price rises, Alex Tofts, broadband expert at Broadband Genie, comments: “There is no getting around the fact that mid-contract price rises are unfair to customers. Providers indeed face additional costs as time goes on, but consumers should expect to know what they are signing up for, and that’s impossible when price rises are linked to inflation.
“First and foremost, double-check that your provider has given you advanced warning about any increase to your bill. If you didn’t receive 30 days notice, you have the right to be exempt from any price rises.
“People looking to cut broadband costs should regularly compare deals from different providers. Check if you’re still in contract and utilise comparison websites to effortlessly sift through the myriad of offers and find the perfect fit for your needs and budget.
“Never be afraid to flex those negotiation muscles. If you’ve sniffed out a better deal elsewhere, let your current provider know and see if they can give you an even better deal. If they can’t, then all the more reason to consider switching.
“Take advantage of introductory offers for new customers. Many providers offer discounted rates for the first few months, or give out gift cards to new customers, allowing you to enjoy significant savings upfront. Just be sure to check what the price will be once the introductory period ends.
“These annual price rises don’t just affect broadband customers, but sweep across all the telecom’s industry, affecting TV, mobile phone and streaming customers.
“Regularly keep track of what broadband speeds your household needs, as if it’s just online shopping and social media you are using it for, you may be able to switch to a slower and cheaper deal. Ultra low-cost social tariffs for financially vulnerable consumers are also a lifeline for people looking to stay connected while on a low income.
“Don’t forget that the best deals on the market might not be coming from the big providers. You may find cheaper and faster deals by choosing an alternative network provider, such as Hyperoptic, Cuckoo and YouFibre. These smaller providers are also much more likely to commit to not tying you into mid-contract price rises while you are with them.”
Adds Natalie Hitchins, Which? Head of Home Products and Services:
“From 1 April, millions of people will face price hikes, including on broadband, mobile, water and council tax bills – and these come just a few weeks after train ticket prices increased for many. However, there are ways to cut costs in the face of these price rises and keep your household bills as low as possible.
“Our research shows that switching providers if you’re out of contract can slash broadband, pay TV and mobile bills by up to £187. It’s also worth checking if you’re eligible for any council tax reductions or exemptions and could save money by installing a water meter.
“To cut costs on rail fares, we’d recommend booking tickets in advance and splitting fares where possible. Railcards – available for those under the age of 30, over the age of 60, and for those with disabilities – can also help you save up to a third on off-peak journeys so it’s worth checking if you’re eligible.
“On a more positive note, the energy price cap will fall to £1,690 a year for a typical household from April – a reduction of more than £230. With prices falling and predicted to remain fairly stable for the rest of 2024, more competitive fixed deals may become available in the coming months. “
