Many providers will be increasing their charges this April, with many of our broadband and mobile bills set to go up. The changes are likely to be linked to CPI (Consumer Price Index) or RPI (Retail Price Index) measures of inflation, which currently stands at more than 10%. But according to industry analysts, they may include additional percentages with some consumers facing an even higher increase on their bills.
According to USwitch, a UK-based price comparison service, some consumers may face an 18% increase on their bills, and has warned that tariff could increase to around £55 a year on broadband bills. And with prices of energy bills and produce at supermarkets going up as well, perhaps many of us are trying to keep a close eye on our finances and spending amid a cost of living crisis.
With that in mind, we have compiled a list of all the price increases with big telecommunication services and how this will affect your TV, mobile and internet bills by April.
Read more: The important date you need to know for renewing your passport as costs set to increase
What is the difference between CPI and RPI?
Both CPI (Consumer Price Index) and RPI (Retail Price Index) are used to work out how much the cost of goods and services purchased by households in the UK are going up over a set period of time.
According to data published by the ONS this month, the CPI rose by 10.5% in the 12 months to December 2022, which was down from 10.7% in November. The latest rate of RPI was 13.4%, which was slightly down on 14% in November, but still an extremely high rate of inflation. The rise in prices is driven by households paying more on food and energy bills.
How much will my TV services and broadband mid-contract bills increase?
BT
BT is expected to increase its monthly prices by nearly 15% on March 31, 2022. It has combined the latest CPI inflation rate of 10.5% with its built-in price increase of 3.9%. All new BT customers who signed up or re-contracted with BT after September 2020 are subjected to the annual price increase, which is in line with inflation as well as the additional 3.9%.
Say you currently spend £10 on your BT services per month, the increase amount which includes the inflation rate (10.5%) and BT's built-in price increase (3.9%) would be £1.44. This means that you would pay an extra £17.28 a year. If you are paying £35 per month, the increase amount would stand at £5.04 which means your annual extra cost would be £60.48. And if you are paying £75 per month, the increase amount would be £10.80 which would amount to £129.60 in annual extra cost.
But customers who BT has classed as vulnerable will not experience this price increase however, and includes people using BT Home Essentials, BT Home Phone Saver and BT Basic.
EE
EE, which owned by BT group, has adjusted the prices of its products and services in-line with the CPI rate of inflation which is 10.5% as well as 3.9%. This means that the majority of their customers will see a price increase of 14.4% or just over £1 per week on average.
If you are paying £10 a month for EE products and services, your estimated new monthly plan price will be £11.44. If you are paying £35 a month, your estimated new monthly plan price will be £38.90 and if you are paying £75 now, your new monthly plan price come April is estimated to be £85.90.
NOW
NOW Broadband, which is owned by Sky, has yet to confirm whether it will be increasing its prices for customers in the middle of their contract this year. Unlike most other providers, Sky doesn't have a yearly price increase.
But Sky did increase its prices in 2022 when inflation reached its highest increase in 30 years at 5%. With inflation now at 10.5% CPI, costs could rise even further in 2023. According to USwitch, Sky bills could rise by £2.50-£7.50 per month, but depends on how much you currently pay for their service.
Plusnet
An annual price increase in Plusnet's terms and conditions will likely see prices for almost all of its customers go up by 14.4% in 2023. With the current rate of inflation at 10.5%, Plusnet will add an extra 3.9%. Therefore like BT and EE, if you are paying £10 for products and services by Plusnet your increase amount will be £1.44, meaning your new monthly plan price will be £11.44 and therefore the annual extra cost will be around £17.28.
Sky Broadband
Like NOW, Sky Broadband has yet to confirm whether it will be increasing its prices for customers in the middle of their contract this year. Unlike most other providers, Sky doesn't have a yearly price increase but according to USwitch their bills could rise by £2.50- £7.50 per month, but depends on how much you currently pay for their service.
TalkTalk
TalkTalk has announced that it will adjust the monthly amount customers' pay for their broadband and increase by the CPI rate of inflation plus 3.7%, which is said to be lower than Vodafone, BT, EE and Plusnet's current price rice commitments.
If you normally pay £25 for your broadband service per month, your new monthly charge would be £26.08. But TalkTalk has noted that if the CPI figure is negative in the relevant year, they will only increase the charges by 3.7%. But TalkTalk says it will protect vulnerable customers from price rises by freezing the price of their current bill.
Virgin Media
Just this week Virgin Media has announced its price increase. Its broadband, TV and home phone customers can expect their monthly costs go up by a staggering average of 13.8% from April this year. According to USwitch, depending on how much you pay for your current Virgin Media package, your price could go up by at least £2-3 per month.
But they say that if you pay a high monthly price for your service, your monthly cost could increase by as much as £10 or even £120 per year. For example, if you are currently paying £20 per month for Virgin Media services, the increase amount (13.8%) will be £2.76, which will mean your annual extra cost will be £33.12. And if you are paying £75 per month, the increase amount will be £10.35 and will mean that your annual extra cost will be £124.20.
Vodafone
Like BT, EE and Plusnet, Vodafone has also adjusted the prices of its products and services in-line with the CPI rate of inflation which is 10.5% as well as 3.9%. This means that the majority of their customers will see a price increase of 14.4% or just over £1 per week on average.
Which mobile providers are planning mid-contract increases for their customers?
EE - CPI rate and 3.9%
EE has combined the latest CPI inflation rate of 10.5% with 3.9%. But anyone on the EE Mobile Basics or a pay-as-you go deal will see their prices frozen, meaning your bill won’t rise this year.
Talkmobile - CPI rate and 3.9%
Talkmobile has combined the latest CPI inflation rate of 10.5% with 3.9%.
Vodafone - CPI rate and 3.9%
Vodafone has combined the latest CPI inflation rate of 10.5% with 3.9%.
BT Mobile - CPI rate and 3.9%
BT Mobile has combined the latest CPI inflation rate of 10.5% with its built-in price increase of 3.9%. But customers who BT has classed as vulnerable will not experience this price increase however, and includes people using BT Home Essentials, BT Home Phone Saver and BT Basic.
O2 - RPI rate and 3.9%
It's unclear how much O2 will increase bills by just yet as the rise is based on the January Retail Price Index Figure (RPI), which will be released in February, plus 3.9% on top.
However if you're on an O2 Refresh package, the rise will only apply to the airtime part of your plan, in other words what you are paying for calls, texts and data. This will not be included in what you pay for you decide and pay-as-you go customers won't see their bills increase.
Virgin Mobile - RPI rate and 3.9%
While no broadband changes have been announced yet, Virgin has said that mobile customers will see their airtime plan increase by the January RPI rate plus 3.9% from April. It will mean you'll know how much your bill will go up by next month.
iD Mobile - RPI rate
iD Mobile will increase bills based on the January Retail Price Index Figure, which will be released in February.
Three - 4.5%
As a Three customer, how much your bill will increase by largely depends on when you took out a contract with the company. According to USwitch if you joined or upgraded your broadband and mobile service from November 1, 2022, your bill will go up by 14.4%, which is the CPI rate as well as 3.9% from April this year.
Three has said that the "majority" of its contract customers will see bills increasing by 4.5%, which applies to customers who joined between October 29, 2020 and October 21, 2022. Broadband and mobile users who signed up before October 29, 2020 and haven't upgraded will be subject to price rises in line with the January RPI figure.
Tesco Mobile - no set prices yet.
Sky Mobile - no set prices yet.
VOXI - no set prices yet.
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