BT is putting its broadband prices up by a record amount. The telecoms provider has confirmed it is increasing bills by 14.4% for the majority of its residential broadband customers.
The increase will come into effect on March 31, 2023. The total percentage figure comprises the Consumer Prices Index inflation rate of 10.5%, plus BT's own rate of an additional 3.9%.
Consumer website Uswitch said it represented "the largest mid-contract price rise the UK has ever seen for broadband", adding: "If you’re a BT customer, you may have agreed to an annual price rise when you signed up, as it's often part of BT's terms and conditions. This means it's unlikely you’ll be able to cancel your contract without having to pay an expensive exit fee.
"However, if your current contract is ending soon (or has already finished), you will likely be able to switch away from this expensive price hike to a much cheaper deal for free."
Nick Lane, managing director for customer services at BT Consumer, previously said the cost of living crisis was "something none of us can ignore right now" and that people were "dealing with higher costs on everything they buy" due to inflation. "It’s never easy to announce price rises, but that is particularly true this year," he said.
"This price rise won’t apply to all of our customers, however. We are freezing the price of line rental, call packages, call charges and call add-ons for our landline-only customers – those who do not have fixed broadband with us or with another provider.
"In addition, our BT Home Essentials, EE Mobile Basics, Pay-As-You-Go, BT Basic and Home Phone Saver customers will see their prices frozen through 2023 as part of our commitment to support those who need it most. This means more than three million customers will not be affected by the change in CPI rates."
In its advice to BT customers, Uswitch said: "If BT’s annual price rise affects you, you likely won’t be able to cancel your contract or switch without paying an early termination fee. The annual price hike is detailed in its terms and conditions, which means you would have agreed to it when you signed up.
"However, if you’ve been on your current BT contract for around two years or more, you might be able to switch or re-contract for free if your initial contract period has run out. If this has happened, you already would have had your bill increased significantly, because BT adds a further price rise once you fall out of contract.
"If you think you’re out of contract with BT, you can compare broadband deals from other providers to see if you’d benefit from a cheaper, faster broadband connection."
