Broadband customers could face hikes of up to £113 in 2023, Which? warns 

Which? is calling on telecoms firms to let customers leave without penalty if prices are hiked mid-contract, as new research from the consumer champion shows people could face eye-watering broadband increases of almost 14 per cent in 2023.  

Many broadband firms – such as BT, EE, Plusnet, TalkTalk and Vodafone – raise prices every April in line with the Consumer Price Index (CPI) plus an additional 3.7 or 3.9 per cent. These price increases are often applied mid-contract – when customers have little choice but to accept them – and mean people end up paying more than they originally signed up for.

Based on figures from Which?’s latest broadband survey, the consumer champion has calculated how much an average BT, EE, Plusnet, TalkTalk and Vodafone customer who signed up for a deal in January 2022 could see their bills increase in the coming months, compared to the amount they originally signed up for.

Customers would face hikes of almost 14 per cent in 2023 alone. In 2023, the average BT customer would see the largest potential increase of £113.07 compared to the amount they were originally paying in January 2022. This is closely followed by EE customers who could pay an extra £105.46.

Vodafone and TalkTalk customers could pay an extra £92.35 and £90.15 a year respectively and Plusnet customers could see the lowest increase of £87.15.

These changes would follow significant increases customers have already faced in 2022. Which? analysis showed that in 2022, the average BT customer saw their prices increase by £42.93, EE by £40.04, Vodafone by £35.06, TalkTalk by £34.11 and Plusnet by £33.09.

These two years of price rises could mean that the average customer on a two-year contract with these firms could end up paying as much as £120 to £156 more on their bills than they originally signed up for by the time the next round of price rises happen in 2024.

BT customers are those who might see the biggest total impact on their bills – they could see as much as £156 added to their bills over those two years when compared to the amount they were paying before the April 2022 price increase. This is closely followed by £145.50 for EE customers. Vodafone, TalkTalk and Plusnet customers could see smaller increases of £127.41, £124.26 and £120.23 respectively.

A good broadband connection is essential to everyday modern life. Which? recently launched a cost of living campaign calling on businesses in essential sectors – supermarkets, telecoms and energy – to do more to help their customers through the cost of living crisis.

Which? is calling on all providers to carefully assess what level of mid-contract price rises can be justified in the current economic climate and allow customers to leave their contract without penalty if prices are hiked mid-contract – regardless of whether or not these increases can be said to be ‘transparent’.

It is especially important that those eligible for social tariffs do not incur any extra charges when signing up and do not have to pay Early Termination Charges to move to a social tariff – even if they are currently mid-contract.

Several providers – Hyperoptic, Utility Warehouse and Zen Internet – already protect people against inflation by committing to keep customers’ prices the same for the duration of their contract. KCOM cancelled mid-contract price rises for 2022 due to the rising cost of living.

Sky and Virgin Media do not currently employ mid-contract price rises. Both regularly make changes on an ad hoc basis – but when this happens, consumers have the right to switch without penalty.

While these are all important steps in the right direction, all providers should ensure they are properly advertising the availability and benefits of social tariffs to customers who are struggling to make ends meet.

Rocio Concha, Which? Director of Policy and Advocacy, said: 

“It is unacceptable that many broadband customers are facing price hikes of up to £113 to their bill during an unrelenting cost of living crisis.

“Customers should be allowed to leave their contract without penalty if prices are hiked mid-contract – regardless of whether or not these increases can be said to be ‘transparent’.

“It is especially important that those eligible for social tariffs do not incur any extra charges when moving to discounted tariffs – even if they are currently mid-contract. Providers also should not charge any set up costs for social tariff customers.”

-ENDS-

Notes to Editors

Which? cost of living campaign

The consumer champion recently launched a campaign calling on businesses in essential sectors – supermarkets, telecoms and energy – to do more to help their customers through the cost of living crisis.

Read more about the campaign here and more about Which?’s calls on businesses here.

Research 

Which?’s calculations are based on the average amounts paid by customers in the consumer champion’s December 2021/January 2022 survey of a nationally representative sample of 3,755  who had a contract for a home broadband service (including broadband and phone).

This forecasting is based on a hypothetical customer paying the average amount when the March 31/April 1 price rises were instituted in 2022.

2023 price rises are based on the latest Bank of England projections predicting CPI will remain above 10% over the next few months. BT, EE, Plusnet and Vodafone all increase prices by CPI+3.9% based on the measure of CPI published in January. TalkTalk increases prices by CPI+3.7%.

John Lewis Broadband’s website says it employs mid-contract price rises of CPI+3.9% – it’s been excluded due to an insufficient sample size in Which?’s survey. This service is no longer offered to new customers.

Shell Energy Broadband reserves the right to increase prices by CPI+3%. In March, it announced it would postpone its 2022 price rises. In July it raised some prices – though by a lower figure (6.1% for affected customers, rather than 8.4%). It has been excluded from this analysis as Which?’s analysis has focused on major providers who consistently increase their prices in line with CPI.

Table 1: The average monthly amounts customers paid each month

Table 2: The average annual amounts customers could pay each year

Table 3: Potential annual increase due to mid-contract hikes 

Right of replies

A BT Consumer Spokesperson said: “We’re dedicated to keeping our customers connected and committed to helping those who need it most. We offer a penalty-free move to Home Essentials for eligible customers who are struggling financially, including EE and Plusnet customers in the coming weeks.”

A TalkTalk spokesperson said: “It is disappointing that Which? would choose to release inaccurate findings that could confuse and worry customers by painting an unrealistic picture. TalkTalk’s Fibre35 packages start at £24.00 per month and we are proud that as the country’s largest value provider, we have been saving customers money for 20 years. We are committed to providing affordable and reliable connectivity for everyone and will continue to do so.”

Vodafone: “We’re aware things are difficult for many of our customers right now and we have made a number of commitments to support them. We offer affordable mobile and home broadband plans, including a Basics range and our VOXI For Now social mobile tariff, and we’ve frozen prices for customers registered as financially vulnerable.  We’re working with the Government on the Help for Households campaign, offering discounts to those struggling with rising costs. And we’re ready to help if people find themselves digitally excluded due to the cost-of-living crisis through our everyone.connected campaign, which has already helped half a million people.

“We know no-one wants to see price rises.  But we also face rising operational costs, including energy, staffing, logistics and transport, as well as the ongoing need to invest in our network and services, particularly with the roll-out of 5G and our customers’ ever-growing data usage.”

About Which?

Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen. As an organisation we’re not for profit and all for making consumers more powerful.

The information in this press release is for editorial use by journalists and media outlets only. Any business seeking to reproduce information in this release should contact the Which? Endorsement Scheme team at endorsementscheme@which.co.uk.

Press Release: broadband, Cost of living, Rocio Concha