Mobile and broadband customers may see mid-contract hikes following the release of the latest inflation figures.
This is because providers often link their annual price rises to January's consumer price index or the retail price index with an added 3.9 per cent on top. These indexes are currently at 10.5 per cent and RPI at 13.4 per cent respectively.
This means that those on contracts that employ price hikes linked to inflation plus an extra 3.9 per cent could see price rises as large as 14 per cent in April.
Previously, four in five consumers say mid-contract mobile and broadband price rises are unfair, as 25 million mobile users and 10 million households on broadband deals face hikes this spring.
For example, a household receiving their broadband from BT currently on a £30-a-month contract will see their bills rise by more than £50 a year from the spring.
Meanwhile, someone on a £75-per-month mobile handset deal with EE would face an annual rise of about £130, according to Uswitch.
BT, EE and Three link their rates to the consumer price index for mobile contracts while 02 and Virgin Mobile typically link rates to the retail price index.
However, just because your provider has typically linked rates to either of these inflation indexes doesn't mean for certain that you will receive a price hike in April. Not all companies are planning mid-term price increases, Sky has frozen its pricing for new broadband customers signing up, while full fibre provider Hyperoptic has never enforced mid-contract bill rises.
Ernest Doku, telecoms expert at Uswitch.com, comments: "Providers are taking different approaches to price rises this year so consumers should pay close attention to their contract terms.
"For example, Sky Broadband customers that signed up in autumn last year were able to lock into a contract with a price freeze throughout 2023. However Three, which last year did not impose inflation-linked rises, is now applying an annual rise to new mobile customers of the CPI rate plus 3.9%
"If you are worried about how these price rises affect you, review the terms and conditions of your contract or double-check with your provider to see what might be in store.
"Consumers cannot predict the scale of these rises when they sign up for a deal, which places all of the risk onto them. We firmly believe providers who impose inflationary increases should allow customers to leave their contract early without penalty, or offer contracts where the price remains fixed for the duration."
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