Customers could be hit by price rises of around 14pc at the end of March
Around 25 million mobile users and 10 million households on broadband deals face a rise in prices next Spring according to research from Uswitch.com.
Many providers hike their annual price rises in line with inflation measured by the Consumer Price Index (CPI) or Retail Price Index (RPI), with some adding an extra 3-4 per cent on top of inflation.
Three is the latest provider to introduce inflation-related mid-contract rises, with the network introducing an annual increase based on December’s CPI rate plus an additional 3.9pc- the same rate as EE and Vodafone.
This will apply to all new and upgrading customers from November 1 and will come into force from April 2023 and will most likely face a double-digit percentage increase.
The research highlighted that 27pc of consumers say that an increase of £5 to their monthly phone bill would cause them stress, while 41pc believe mid-contract price rises should be stopped.
Furthermore, 80pc of Brits want providers to offer fixed-price deals for their broadband and mobile- with no mid-contract rises.
Sky is one of the few providers to freeze its pricing for new broadband customers signing up, while full fibre provider Hyperoptic has never introduced mid-contract rises.
Table: Which broadband providers are planning mid-contract increases
| Provider |
Increase? |
| BT |
CPI + 3.9% |
| Community Fibre |
It may (at its discretion)CPI + up to a maximum of 2.9% |
| EE |
CPI + 3.9% |
| John Lewis Broadband |
No |
| Hyperoptic |
No |
| NOW |
No set price risebut “services are variable and our prices and services can change.” [1] |
| Plusnet |
CPI + 3.9% |
| Shell Energy Broadband |
CPI + 3% |
| Sky Broadband |
No set price risebut “services are variable and our prices and services can change.” [2] |
| Talktalk |
CPI + 3.7% |
| Virgin Media |
No |
| Vodafone |
CPI + 3.9% |
Source: Uswitch.com. Correct as of 4th November 2022
Table: Which mobile providers are planning mid-contract increases
| Provider |
Increase? |
| BT Mobile |
CPI + 3.9% |
| EE |
CPI + 3.9% |
| giffgaff |
No |
| iD Mobile |
RPI rate [1] |
| Lebara |
No |
| O2 |
RPI + 3.9% [2] |
| SMARTY |
No |
| Sky Mobile |
No set price risebut “we may change the price of your Sky Mobile services” [3] |
| Talkmobile |
CPI + 3.9% |
| Tesco Mobile |
No |
| Three |
CPI + 3.9% for new and upgrading customers.[4]4.5% fixed increase for existing customers |
| Virgin Mobile |
RPI + 3.9% [5] |
| Vodafone |
CPI + 3.9% |
| VOXI |
No |
Source: Uswitch.com. Correct as of 4th November 2022
Uswitch is calling for telecoms providers to cancel these mid-contract price rises next Spring, or let customers leave at no cost if their price increases.
The company is also calling on Ofcom to do more to stop providers from enforcing these mid-contract rises.
Richard Neudegg, director of regulation at Uswitch.com, comments: “There seems to be no other industry that sees companies increasing their prices halfway through a fixed-term contract with no right to leave. It’s time Ofcom took action to help protect customers from these rises, so they know what they’re dealing with when signing a new contract.
“If providers cannot commit to a price for the duration of the contract – they should offer shorter contracts or the chance for consumers to leave penalty-free when prices jump.
“If you are taking out a new broadband or mobile package, check for wording around annual mid-contract rises, which should be prominently shown at the point of signing up. If the annual rise is linked to inflation it is impossible to predict exactly how much this will make bills rise by.
“If you’re out of contract – not only could you be paying over the odds – but, depending on your provider, you could still be faced with an annual price rise. If you’re nearing the time to switch, it’s important to compare what deals are available.”
