Millions of mobile and broadband customers across the UK are bracing for price hikes in the coming weeks and months. Many providers, including major players like BT, EE, Three, Vodafone, and O2, are raising their monthly charges to offset increasing operational costs. While price adjustments are typical around March or April, often linked to inflation, this year’s increases are more complex due to new regulations introduced by Ofcom. These regulations mandate providers to clearly disclose mid-contract price increases in pounds and pence for new deals, offering customers greater transparency before signing up. However, the implementation varies across providers, and customers who signed contracts before the new rules took effect might still see increases based on the Consumer Price Index (CPI) inflation plus an additional percentage set by the provider.
Navigating the landscape of price increases can be confusing due to the interplay of old and new regulations. Some providers adopted the new disclosure method before the January 17th deadline, while others are still transitioning. This means customers need to be aware of the specific terms of their contracts and when they were signed. For instance, BT and EE mobile customers who signed contracts before April 11, 2024, will face a 6.4% increase (CPI of 2.5% plus 3.9%), while those signing up after that date will see fixed increases of £1.50 for SIM-only plans and £4 for handset plans. Similar tiered increases apply to BT and EE broadband customers. Three is following a similar pattern, with pre-September 8, 2024, contracts increasing by 6.4%, and later contracts seeing fixed increases between £1 and £1.50 for mobile and £2 for broadband.
Tesco Mobile presents a slightly different approach. Customers who signed up before December 17, 2024, face a 6.4% increase, while newer contracts will have price adjustments based on their monthly tariff, which translates to an approximate 6% increase. However, Tesco Mobile offers an incentive for Clubcard holders, exempting them from mid-contract price rises. O2’s price changes depend on the contract date. Pre-January 9, 2025 contracts are based on January’s Retail Price Index (RPI) plus 3.9%, while post-January 9 SIM-only contracts have a fixed £1.80 increase. Handset plans are exempt from the April 1st increase. Vodafone mirrors this date-dependent approach, with pre-July 2, 2024 mobile contracts rising based on January’s CPI plus 3.9%, and later deals seeing fixed increases of £1 or £1.50. Vodafone broadband contracts follow a similar pattern with a £3 increase for post-July 2 agreements.
Other providers are implementing different price adjustment mechanisms. iD Mobile (owned by Three) will raise pay-monthly phone deal prices from April 1st based on February’s CPI. Sky Mobile is increasing both pay-monthly and SIM-only contracts from February 14th by a fixed £1.50 for out-of-contract customers only. Plusnet broadband prices increase from March 31st, with a 6.4% rise for pre-July 11, 2024 contracts and a £3 increase for later contracts. TalkTalk broadband will increase prices from April 1st, with a 6.4% increase for pre-August 12, 2024 plans and a £3 increase for newer plans. Community Fibre is also increasing prices from April 1st, with a January CPI plus 2.9% increase for pre-November 5, 2024 contracts and a £2 increase for later contracts.
Amid these widespread increases, several providers offer a respite by freezing their prices. Asda Mobile, Giffgaff, Lebara, Lycamobile, SMARTY, Superdrug Mobile, Talkmobile, VOXI, and Hyperoptic (broadband) are all holding their current pricing steady. This presents a valuable opportunity for consumers to explore alternative options and potentially avoid the impending price hikes.
The complex landscape of price increases underscores the importance of being an informed consumer. Understanding the timing of your contract, the specific terms of your agreement, and the provider’s pricing policies is crucial. Comparing offers from different providers, including those holding prices steady, can help mitigate the impact of rising costs. Consumers should also explore options like haggling with their current provider, switching to a different provider, or checking eligibility for social tariffs which offer discounted rates for those receiving certain benefits. By proactively evaluating these options, consumers can navigate the price increases and ensure they are getting the best value for their money.