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Broadband price increases usually happen annually but can increase mid-contract, making it difficult to budget. The current price rise is linked to the January 2024 inflation rate of 4 per cent, and providers usually add 3 to 4 per cent on top of this, meaning this year’s prices are set to rise by over 7 per cent on or after 31 March.
It’s not uncommon for broadband prices to increase, even if you’re mid-contract. Broadband providers typically increase prices annually.
Unfortunately, price rises have hit wallets a little harder in recent years. Price increases are based on January’s Consumer Price Index (CPI) rate, which is 4 per cent.
Annual price increases happen in April. However, you’ll be given plenty of forewarning. You should begin receiving emails in January and February outlining the date of the increase and your new monthly bill cost.
Mid-contract price increases occur when your provider increases your monthly bill before your contract expires. Both new and existing broadband customers are subject to these price rises.
Price hikes have been considerably steep in recent years – the inflation rate reached a 30-year high in 2022 and is still recovering. On average, customers paid 14 per cent more for their broadband contracts in 2023 and an average of 9 per cent more in 2022.
Based on this year’s CPI plus the average additional 3 per cent to combat the rise in costs, consumers can expect broadband bills to rise by up to 7.9 per cent.
Broadband providers increase prices in line with inflation as well as an additional set amount decided by your provider.
Here’s how much some top broadband provider’s prices will rise in 2024.
| Broadband provider | CPI or RPI + providers’ rising costs | Overall price increase |
|---|---|---|
| BT | CPI + 3.9 per cent | 7.9 per cent |
| Sky | Price rise not linked to CPI or RPI | 6.7 per cent |
| TalkTalk | CPI + 3.7 per cent | 7.7 per cent |
| Virgin Media | RPI rate (figure not yet available) + 3.9 per cent | 8.8 per cent |
| Vodafone | CPI + 3.9 per cent | 7.9 per cent |
| EE | CPI + 3.9 per cent | 7.9 per cent |
| NOW Broadband | No set price increase | Not announced |
| Plusnet | CPI + 3.9 per cent | 7.9 per cent |
| Community Fibre | CPI + 2.9 per cent | 6.9 per cent |
| Three | CPI + 3.9 per cent | 7.9 per cent |
Broadband prices will rise by up to 7.9 per cent on or after 31 March, based on a CPI inflation rate of 4 per cent plus an additional 3 to 4 per cent yearly increase set by providers.
The only broadband deals not increasing are social tariffs. These types of deals won’t be affected by price hikes.
Based on the 7.9 per cent increase, your monthly broadband bill could increase similarly to the following amounts:
| Current broadband deal | Potential price increase | Additional cost per year |
|---|---|---|
| £20 | £1.58 | £18.96 |
| £25 | £1.97 | £23.64 |
| £30 | £2.37 | £28.44 |
| £35 | £2.76 | £33.12 |
| £40 | £3.16 | £37.92 |
| £45 | £3.55 | £42.60 |
| £50 | £3.95 | £47.40 |
Whether you can cancel your broadband contract due to price hikes will depend on your terms and conditions.
When you enter a broadband contract, your provider should outline any future price rises that are either a set amount or linked to inflation. Some contracts are fixed terms for a set amount of time and then rise to a pre-agreed amount.
If your price rises and the above isn’’t included in your terms and conditions, Ofcom rules state that you are free to exit the contract and switch providers without paying exit fees.
However, most broadband providers will specify price rises in their terms and conditions, which you’re required to accept before signing the contract. With this in mind, it’s important to read the small print to avoid any financial surprises in the future.
Though you’ve entered a contract, you may still cancel if you’re willing to pay exit fees. You can switch broadband providers mid-contract, but it’s likely your current provider will charge you for the remaining months of your contract. This is referred to as an exit fee.
This depends on when your contract ends.
If you do wish to switch providers in the face of price hikes, it’s worth checking how long you have left on your contract. If you don’t have much time left, it’s best to wait it out to avoid exit fees. If you have a long period left and have found a new broadband deal, compare your potential savings with your exit fee to establish if it’s worth switching.
If you’re out of contract and are not happy with the price of your deal, it’s a good idea to compare broadband deals and switch.
Fortunately, some providers don’t hike prices mid-contract, including the following:
When choosing a broadband provider, it’s best to shop around and compare deals. This allows you to compare prices and internet speeds.
If your current deal is too expensive and you’re out of contract, you could try to negotiate a better deal with your provider. If this doesn’t work, switching broadband providers is likely the best option to save on your monthly bill.
With mid-contract rises in mind, you should consider this when choosing your new deal. If you choose a longer contract, mid-contract rises could become a financial burden. A shorter contract gives you more flexibility, and you can switch and save money much sooner.
Ofcom rules state that customers must be told upfront about any future price increases. Ofcom also notes that inflation-based price rises are unfair and unpredictable. As a result, tougher rules are being implemented.
Ofcom states that any price written into a customer’s contract needs to be clearly written out in pounds and pence at the time of signing the contract. This includes information relating to when price changes will take place.
No, social tariff prices are not affected by price increases. This type of deal remains unaffected by inflation rate price increases.
Yes, if you’re out of contract with your provider. If your contract has ended and your broadband price has increased, you have every right to negotiate a new deal with your provider. It’s a good idea to compare deals first so that you have a good idea of what prices other providers are offering. This way, you can negotiate better.
According to Ofcom, broadband prices have decreased over the last five years, even though annual price hikes have taken place. In addition, providers have invested in their networks, and average speeds have increased. Whether broadband prices will come down again depends on the rate of inflation, and compared to 2023, the price rises in 2024 are not as damning.
