Millions of broadband and mobile bills set to rise | Tech News

Broadband and mobile prospects will see an estimated £17.4 million monthly added to their bills when mid-contract price rises come into impact on April 1, in accordance to price comparability firm Uswitch.

Although the telecoms market has moved to a ‘pounds and pence’ model that declares flat fee annual price rises upfront, tens of millions of Brits are nonetheless on older inflation-linked contracts that abide by older guidelines.

Official figures launched immediately show the UK inflation fee rose to 3.4 p.c within the 12 months to December, which helps paint a image of the unpredictable price rises these prospects can count on later this 12 months. Many service suppliers work out rises by including CPI and a additional 3.9 p.c hike to attain a new whole.

“Today’s CPI announcement is another piece of the puzzle in April’s price hikes,” mentioned Ernest Doku, telecoms skilled at Uswitch.com.

“For the estimated 8 million mobile and broadband customers still on older inflation-linked contracts, these increases will add an expected £17.4 million a month to household bills this spring.

“Following Ofcom’s rule changes, price rises are now split. While those who switched recently benefit from the transparency of fixed ‘pounds and pence’ rises, many of these newer hikes are actually proportionally higher than the current rate of inflation.

Ofcom’s new rules came into effect in January 2025, but many broadband and mobile contracts that predate that are still linked to inflation. Many telecom contracts enforce annual price prices that increase monthly bills. Given contracts typically last between 18 to 36 months, consumers can see bills rise substantially over time, even if they are receiving the same service.

On the newer rules, several broadband firms have announced flat rate £4 price rises for April 1, while mobile providers have set price rises at anywhere up to £2.50.

Doku said one way to avoid the price rises is to switch to another service provider. This is easier if you are out of contract, which means you have finished the initial term of your contract and are simply paying a monthly rolling fee – which could be lower if you switch.

“Consumers must be proactive to ‘reset the clock’ by switching to a new deal, as staying out of contract is more dangerous than ever,” he mentioned.

“Even with a £4 monthly rise, switching is almost always cheaper than staying on an expired plan as compounding price increases can snowball year after year.

“If today’s announcement affects you, it’s more likely your contract is nearing its end date or has already expired. This means it’s likely you’re free to switch and save. If you’re still in-contract, set a reminder for your end date now so you can switch immediately and avoid paying costly out-of-contract rates.”

It is tough to discover a broadband service supplier that doesn’t increase bills yearly, though Trooli and YouFibre offer fixed bills.

There are loads of choices for mobile suppliers. Mobile digital community operators (MVNOs) lease community space from EE, O2 and VodafoneThree, usually with cheaper costs and no annual price will increase. These embody VOXI, Lebara, Giffgaff and SMARTY.

Providers at the moment are legally obliged to help you turn to a new firm, so do not be afraid to make the leap – it will probably prevent money.