Money Wellness
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category iconbills
calendar icon28 Feb 2024

Broadband and mobile prices set to rise by 8.8% in April

If you pay for broadband, mobile or pay TV, you could get hit with price hikes of up to 8.8% as many major providers have now confirmed price rises.

Research from Which? at the end of last year estimated that around 8.4 million households across the UK would be hit. The increases are happening because of inflation-linked mid-contract rises, with an estimated extra £221 million set to be paid to broadband providers. For those being hit by mobile phone contract rises, it’s estimated an extra £267 million will be paid.

It’s common and legal for providers to hike their prices midway through contracts to combat the inflation rate. They can even do this if you’ve agreed to a fixed monthly rate for your contract period.

How are mid-contract price rises worked out?

The price rises happen once a year in April and are tied to the Consumer Price Index (CPI) inflation figure that’s published every January.

Many providers will also add a further 3% to the inflation figures to help offset their own rising business costs.

Check how much your contracts are increasing by

Can I leave my contract to avoid paying more?

This will depend on your contract’s terms and conditions.

If price increases are stated in your contract and you’ve agreed to those terms, you won’t be able to leave without paying the exit fees to your provider.

What if my contract is about to end?

Check when your contract end date is- some providers will simply roll you onto more expensive tariffs after your end date. If this has happened to you, you can leave without needing to pay any fees or penalties, and you can find a cheaper deal elsewhere.

Help if you're on benefits

For people claiming certain benefits, social tariffs are cheaper broadband and phone packages. They’re cheaper than regular packages ranging from £10-20 and you’ll have broadband speeds of over 30Mbit/s.

Eligible benefits include:

  • Universal credit
  • Pension credit
  • Employment and support allowance
  • Jobseeker’s allowance
  • Income support
  • Some providers may also include additional benefits such as attendance allowance and personal independence payment (PIP).

If your current provider doesn’t have a social tariff, they may allow you to leave your current contract without paying a penalty.

If your current provider does have a social tariff, it won’t cost you anything to switch.

If you’re already on a social tariff, then don’t worry, mid-contract price hikes won’t affect you.

Find your social tariff .

 

Avatar of Lydia Bell-Jones

Lydia Bell-Jones

With a background in banking, Lydia has been writing professionally for over five years. She is passionate about helping people improve their personal finances and has a particular interest in the connection between money and mental health.

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