If you’re a broadband customer in 2024, you might have received a notification from your provider that your monthly bills will be going up – even if you’ve recently got a new broadband deal.
While this can of course be a frustrating thing to happen, the reality is that it’s not necessarily anything new and it’s a practice we’ve seen happening over the last few years.
That said, there are some circumstances where you can avoid these price rises – and sadly some where you can’t. Here we’ve explained all you need to know about broadband price rises, why they happen and offer some steps you can take to steer clear of them.
Broadband price rises explained
Broadband price rises: at a glance
Each April, broadband prices typically rise. The increases are meant to be in line with annual inflation – which is informed by the Consumer Price Index (CPI) or the Retail Price Index (RPI) – and these days this is something that’s written into our supplier contracts.
Some broadband suppliers also have their own discretionary percentage price increases to cover their own rising operational costs against inflation, which they may bolt on at the same time. This is why we can see variations in the size of the percentages in which suppliers say they will be increasing their prices.
‘Mid-contract price rises’ explained
You may also hear or see the phrase ‘mid-contract price rises’ being used in relation to this subject. This basically refers to the same price increases we’ve mentioned above, but specifically for those who are still under contract with their broadband provider – and ultimately, can’t do a great deal about them.
Broadband cost increase examples
The CPI rose by 4% in the 12 months up to January 2024, according to the ONS, and this is the base rate most broadband providers have used this year. However, some have taken a snapshot from February and then included their additional increases. As such, the majority of the UK’s ISPs have surpassed the standard 4%.
Here’s a selection of some examples for April 2024 of provider price increases, from highest to lowest:
- Virgin Media – 8.8% (February RPI rate + 3.9%)
- BT – 7.9% (CPI rate + 3.9%)
- Plusnet – 7.9% (CPI rate + 3.9%)
- EE – 7.9% (CPI rate + 3.9%)
- Vodafone – 7.9% (CPI rate + 3.9%)
- Three – 7.9% (CPI rate + 3.9%)
- TalkTalk – 7.7% (CPI rate + 3.7%)
- Sky – 6.7% average (not in relation to CPI)
Broadband price rises – frequently asked questions
Have broadband prices always increased?
As we’ve alluded to earlier, these price rises are nothing new – although things are getting a bit better than they used to be.
If we go back to 2019, the UK regulator Ofcom had to introduce new regulations to stop providers putting up prices whenever they wanted – something that unfortunately happened quite a lot.
However, what suppliers instead started doing (which is what we’re seeing now) is that they just wrote into our contracts that their broadband packages would be subject to these annual increases. Moreover it also removes any obligation for them to let their customers know that these rises will be happening – something that continues to catch people out.
Will broadband prices continue to rise?
As we’ve explained above, this practice of using a contractual agreement is going to hit consumers again in April this year, but whether or not this happens next year remains to be seen – as there’s a glimmer of hope on the horizon.
It shouldn’t really come as a surprise that Ofcom has recognised how these price rises aren’t particularly well received by broadband customers and in December 2023 it announced plans for a ban on these ‘inflation-linked price rises’.
Its own study into this showed that ‘as of April 2023 four in ten (11 million) broadband customers and over half of mobile customers (36 million) were on contracts subject to inflation-linked price rises’ and that this could rise to six in ten in 2024. Worryingly though, Ofcom deemed that providers weren’t doing enough to help customers understand these price rises and ultimately were making ‘customers unfairly assume the risk and burden of financial uncertainty from inflation’.
As such, it plans on introducing new rules for broadband providers requiring:
“that any price written into a customer’s contract would need to be set out in pounds and pence, prominently and transparently, at the point of sale. That includes being clear about when any changes to prices will occur. This would prevent providers from including inflation-linked, or percentage-based, price rise terms in all new contracts”.
Ofcom intends to finish its consultation on this matter and publish its final decision in Spring 2024.
Can’t I just move to a cheaper provider?
This is the question a lot of customers tend to ask when faced with these price rises and the simple answer is that you can, but you’ll likely face having to pay an exit fee.
However, if your existing broadband contract is set to come to an end before April’s price increases, you will be free to switch to a cheaper tariff without incurring any penalties.
How to avoid broadband price rises
How to avoid broadband price rises now
So in addition to simply switching if you’re out of contract, there are a couple of other ways you can look to avoid these broadband price rises now. These include:
Haggling with your provider
One tried and tested method is to pick up the phone (or head to a LiveChat service) and try to haggle with your existing supplier for a cheaper rate.
Checking to see if you can switch for free
In some cases you can find that you are able to switch for free. This is quite rare, but it’s worth double checking your contract to see if your supplier in fact doesn’t charge a penalty fee for an early exit.
Prove you’re not getting the right service
If you feel you’re not getting the service you’re paying for – e.g. your internet is slower than it should be on a regular basis – then you can build a case to say your supplier has broken the terms of your contract, allowing you to leave for free. However, you do need lots of evidence and additional proof to make such a scenario happen.
How to avoid broadband price rises in the future
If you’re thinking further ahead – and assuming Ofcom’s rulings don’t come into force this year – you can also try the following to circumnavigate these price rises:
Choose a provider with no price rises
It might sound obvious, but there are a few providers who haven’t raised their prices, such as Zen Internet and Hyperoptic. Plus, more suppliers are starting to offer ‘price lock’ deals that promise you won’t see increases if you sign up for things like long term contracts.
Go for shorter contracts
Another option is to pick a broadband package that has a short-term, or rolling monthly contract. These typically cost a bit more, but it gives you the flexibility to leave in a quicker timeframe if you know the prices are going up.
Save with a bundle deal
If you have things like your mobile phone or your TV services through different suppliers, it might actually work out cheaper to bundle these together with your broadband. Essentially you can negate the price rises with savings on these extras.
Find a new broadband deal
Finding the best broadband deals
Whatever approach you take here, our guide to the best broadband deals can help you find a new – and potentially cheaper – package, especially if you are looking to switch.
Alternatively, you can get an idea of what deals are on offer in your location by using our widget below. All you need to do is enter your postcode and we’ll show you all the top tariffs available to you and your property.
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