How to beat the broadband price hikes

Broadband and mobile phone customers are facing above-inflation mid-contract price hikes of up to 8.8% this spring following the latest inflation data.

"Most of the biggest broadband and mobile providers" link annual bill increases to either December's Consumer Prices Index (CPI) or the January Retail Prices Index (RPI) rates of inflation, said MoneySavingExpert. 

The January RPI rate – published in February – was 4.9%, "so we know the hikes that all of the major providers will implement".

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Many companies also add around 3%, said uSwitch, which they claim helps "combat rising business costs". 

Virgin Media links its price hikes to the "more expensive type of inflation", added the comparison website, at RPI plus 3.9%, while others such as BT, EE, Three and Vodafone use CPI plus 3.9%. 

The "inflation-busting" increases will take place from next month until May, said This Is Money. Providers say their "hands are tied" as most of them rely on Openreach's infrastructure and pay a yearly fee, which rises with inflation as well.

To add "insult to injury", said Which?, Virgin Media and O2 raised customer bills by an average of 13.8% and 17.3% respectively last year. Customers of these brands who signed up or renewed contracts since 8 February won't see price increases until April 2025. 

Industry regulator Ofcom has announced that it is planning to ban mid-contract price rises but until this happens, there are ways to avoid the price hikes. 

Check your contract

Check your terms and conditions, said GoCompare, because if the price "has increased unexpectedly and you are out of contract" you have the right to cancel without "hefty fees". 

Also, you don't have to accept a price hike "if it's not part of your contract", added the comparison website.

Shop around

These hikes affect only those people who are in a contract, so if yours has ended then you are "free to leave" without penalties, added MoneySavingExpert.

People can often "save £100s by switching", so it is worth shopping around for the best deal.

Haggle

It may be worth haggling for a better deal if you are out of contract but want to remain with your current provider, said Rest Less. 

"Leverage your right to leave penalty-free if you are out of contract," the website added, and they may offer a "better rate to convince you to stay".

Ask for help

Providers are required to support struggling customers.

Speak to your provider, said Which?, if you "have concerns about being able to pay your bills".

Many of the large providers such as BT, Sky and Vodafone have schemes in place, added MoneySavingExpert, "to help customers who've encountered financial problems".