Virgin Media has announced that it'll be introducing a price surge based on inflation and prevent people from cancelling their contracts for free.
From April this year, millions of Virgin customers in the UK will see their phone, broadband and TV bills surge by an average of 13.8 percent.
And in 2024, the telecoms giant will start to use the Retail Price Index (RPI) measure of inflation - plus 3.9% on top - when deciding how much prices will need to be raised. The Mirror reports that this new pricing scheme will come into force in April of next year, and will be based on the inflation figures from that February.
Additionally, the price rise will be included in any terms and conditions of anything that comes with a customer contract - meaning you won't be able to leave penalty-free within 30 days of receiving notice of a bill increase.
In an email sent out recently, Virgin Media said its new rules apply to any additional add-ons you might have, excluding subscriptions such as Disney+ and Netflix.
Addressing its customers, the email said: "From April 2024, we are changing our approach so any price rise to your package is always made at the same time every year, and it’ll be linked to the Retail Price Index (RPI) rate of inflation plus an additional 3.9%, so the amount of any increase will be clearer, sooner. To do this, we need to change our terms and conditions."
The email continues: "As this annual price increase is provided for in your terms, there is no right to cancel given for this price increase from April 2024."
Virgin Media told The Mirror that the RPI measure of inflation is expected to be lower in 2024 than it is today, and said other major providers also use this to determine price rises.
A Virgin Media spokesperson said: “The introduction of inflation-linked price changes, which comes into effect in 2024 when RPI is projected to be at around 1.5%, will give customers clarity and certainty about what to expect from their bills while fuelling the investment required both now and in future.
"We are clearly communicating these changes directly to our customers."
It comes after consumer group Which? said customers of telecom firms that don't allow people to leave penalty-free are trapped between choosing huge mid-contract price hikes or exit fees of over £200.
Which? is now urging companies to let customers leave contacts without paying a fee if prices are hiked mid-contract.
How to save money on broadband
If you've been hit by rising mobile phone or broadband bills, there are a few things you can try to bring the cost down.
If you're out of contract, you're free to leave and go elsewhere - or maybe you want to haggle down your current provider.
There is also no harm in trying to haggle if you're still in contract. The first thing you should do is compare prices elsewhere to see what other deals are available - you'll normally find SIM-only plans are the cheapest.
You can also compare prices by using comparison websites such as MoneySupermarket and Uswitch.
Take a look at how many minutes, texts and how much data you currently use, so you can find similar plans that suit your needs. You might find you're actually paying too much right now for allowances that you're not using.
When haggling, explain the better deals you've seen elsewhere then ask if the company can match or beat that price.
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