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Households could see their broadband fees increase by £50 next year due to punishing mid-contract price rises

11 months ago 51
  • The increases are set to make the companies involved as much as £500million  

By Sean Pulter Consumer Affairs Editor

Published: 01:24 GMT, 29 November 2023 | Updated: 01:53 GMT, 29 November 2023

Households could see an increase of as much as £50 in annual broadband fees due to punishing mid-contract price rises.

The increases, which will could also see mobile contracts rising by £20 a year, are set to make companies as much as £500million.

The alarm has been sounded by Which? and will fuel concerns that the cost of living squeeze is set to continue through 2024.

The increases are due to the fact that most broadband and mobile phone services impose contracts that allow them to increase prices by inflation plus a further percentage rise of up to 3.9 per cent.

This regime allowed increases of 13.8 per cent for millions of consumers last year - sometimes higher - while further big increases are expected in April 2024.

Which? estimates that 8.4 million UK households are currently in a broadband contract that will be subject to an inflation-linked mid-contract price rise. It estimates this will add £221million to bills.

The increases are set to make companies as much as £500 million (Stock Image) 

At the same time, an estimated 13.7 million UK adults are currently in a mobile contract that will be subject to an inflation-linked mid-contract price rise, adding up to an extra £267 million on bills (Stock Image)

At the same time, an estimated 13.7 million UK adults are currently in a mobile contract that will be subject to an inflation-linked mid-contract price rise, adding up to an extra £267million on bills.

Which? estimates that broadband customers at Virgin Media, BT and EE could see the biggest annual increases of £50.52, £43.68 and £43.68.

For mobile phone 12-month Sim-only contracts with unlimited data, calls and texts, the customers of O2 and EE customers could see the biggest annual increases of £24.02 and £20.58.

Which? said: 'These eye-watering figures are particularly galling during a cost of living crisis, when many households are struggling to make ends meet and cover the cost of essentials.' The industry regulator Ofcom is currently carrying out a review into mid-contract price hikes and both Which? and Citizens Advice are calling for a ban.

The Which? Director of Policy and Advocacy, Rocio Concha, said: 'It's absolutely unacceptable that during the most severe cost of living crisis in decades, telecoms companies stand to make almost half a billion pounds from next year's mid-contract price hikes.

'From working and school to online banking and access to information, a good broadband and mobile connection is essential to everyday life.

'That's why Which? is calling on Ofcom to ban these unpredictable mid-contract price hikes and give people certainty about exactly how much their contract will cost when they sign up.'

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