The annual price increase will likely affect more than 15 million customers.
This comes during a time when living costs are skyrocketing and inflation is predicted to spike further, despite being at the highest level in 30 years.
Millions of households are already facing doubled energy bills due to the energy crisis which caused almost 30 energy suppliers to close down in the past year. The energy price cap has increased by 54% to £1,971 and experts warn it can jump to £3,000 in October.
- This includes BT, Sky, O2, Virgin, EE, Plusnet, TalkTalk, Vodafone, Three
- Many customers will be paying more than 9% extra for their telecom services
Why the annual price increase?
The majority of the UK’s biggest broadband providers increase their prices every year in line with the Consumer Prices Index (CPI) rate of inflation, which is currently at 5.5% as of January 2022.
Price increases will take effect starting end of March. More than 15 million households will be affected.
Which broadband providers are raising prices?
- BT: 9.3% starting 31 March
- Sky: 5%, starting 1 April
- O2: 7.8% starting 1 April
- Virgin: £56 per year or 11.7% for virgin mobile, starting 1 March
- EE: 9.3%, starting 31 March
- Plusnet: 9.3%, starting 1 March
- TalkTalk: 9.3%, starting 1 April
- Vodafone: 9.3%, starting 1 April
- Three: 4.5%, starting 1 April
BT broadband customers will see a price increase of about £42 per year starting from March.
Customers who joined before September 2020 or will be in contract after March 2022 will see a smaller increase of 5.4%
You won’t be affected if you have Home Essentials, Basic and Home Phone Saver packages, or a BT Sport Monthly Pass and BT Sport via Sky without BT broadband.
Sky customers will see a 5% increase in bills starting in April:
|Service||Price increase (/month)||Old price
|Sky Signature TV package||£1||£26||£27|
|Sky Broadband Essential||£2.50||£25||£27.50|
|Sky Broadband Superfast||£2.50||£28||£30.50|
|Sky Glass with Superfast Broadband||£2.50||£56||£58.50|
How much extra will be added to your bill depends on when you joined the network.
Starting from April, customers who joined O2 before 25 March 2021 will be charged 7.8% extra in bills whereas those who joined after 25 March 2021 will face a 11.7% increase.
Starting in March, Virgin Mobile and SIM-only customers will see an 11.7% increase in their bills, the same as O2 customers as the two companies have merged.
If you are with EE broadband, you can expect a 9.3% increase in bills starting March.
The same applies to all EE mobile users who joined after 31 August 2020 or who will be out of contract before 31 March 2022.
Those who joined before September 2020 or who will be in the contract after 31 March 2022 will face a slightly smaller 7.5% increase in bills.
Customers who joined after 6 October 2020 will face a 9.3% increase starting 31 March.
If you joined before 7 October 2020, this price increase will only apply to your call costs within your fixed term contract.
TalkTalk broadband and home phone customers will be seeing a 9.1% hike in bills starting April.
Fixed Price Plus customers out of minimum contract period will have 5.4% extra added to their bills.
Vulnerable customers, such as the elderly or those with physical/ mental disabilities will not be affected.
Vodafone mobile customers who signed up after 8 December 2020 will face a 9.3% increase in bills, starting April.
The same applies to home broadband customers who joined after 1 Feb 2021, who will see this increase in their bills coming April.
Three customers on monthly/ SIM-only deals who joined or renewed after 29 October 2020 will see a 4.5% increase in bills starting April.
Those who joined before 29 October will face a slightly lower 7.8% on bills.
What can customers do?
If the annual price increase is not stated in your contract, you should be able to leave your contract without an exit penalty fee. Ofcom rules state that you are allowed to break your contract without any consequences if your provider increases subscription higher than what was agreed when the contract was initially signed.