After the cost of energy bills, petrol and groceries soared in 2022, millions of families are just weeks away from price increases of up to 14% as several major broadband providers start to hike their pricing from late March onwards. Broadband providers, such as BT, EE, Plusnet, Shell Energy, TalkTalk and Vodafone, raise their prices every April in line with the consumer price index (10.5% as published in January 2023), plus an additional 3.0% to 3.9%, depending on the provider. This means that most customers will see their price increase by over 14% as a result.
Why do broadband providers have annual price rises?
Broadband firms have annual price rises on their deals every year – usually in March or April – linked to inflation, as well as an additional fee to adjust for rising business costs. Also called mid-contract price increases, they are applied to your bill regardless of if you are a new customer or you’ve already entered into a minimum contract period.
In simple terms, when you sign up for a broadband deal, you’ve agreed to pay a certain amount each month for a fixed-term (usually 12, 18, or 24 months) and to a set of Terms and Conditions that you adhere to in order to use your Provider’s services. Somewhere, within these Terms and Conditions, you may also agree to your provider increasing your monthly charge by a certain amount every year.
Previously, the annual price increase wasn’t too concerning, since inflation was usually around 2-3.5%. But with inflation at exceedingly high levels this year and with no signs of lowering any time soon, it’s worth considering how these charges might affect your monthly living costs and what actions you may want to take to avoid them.
What can you do to avoid a price increase?
Firstly, read your contract. Especially the section that explains how and when you can leave and whether in your current contract, you’ve agreed to your provider’s ability to raise prices without warning and without giving you the opportunity to move to another provider.
Once you’re set up, do the maths. If you know your contract will increase by 14% this year, work out how much you’ll be paying. Next, you can set a reminder for a week or two before your contract ends so you know when you can haggle with your provider, as they rarely let you know when your contract has ended. Most broadband providers don’t want you to switch away, so you can attempt to haggle the price down on your existing contract.
Know your rights. If your provider announces a price increase that is not stipulated in your contract, you are allowed to leave the contract and sign another broadband deal.
If your contract is about to end, this is your moment to get a better deal – even if prices haven’t risen significantly. There are broadband providers that are not increasing prices and you will benefit from knowing that your bill will not go up for the duration of your contract.
Broadband comparison websites can be extremely handy when looking for deals and reviews. Here are some examples:
We’re keeping our pricing below inflation rates
Everyday Communications, despite being a smaller ISP, can deliver fast broadband, offer good customer service and keep our prices below inflation rates. If you’re unsure how to choose an ISP plan, please do not hesitate to contact us.
We’re here to help you pick a broadband deal that suits your needs and will save you money!