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Price hikes to cost billpayers up to £250. Top 5 tips to avoid broadband price increases

When most people think of springtime, they think of daffodils, warmer weather and Easter chocolate. However, for broadband bill payers it means one thing; mid-contract price rises.

Every year, broadband providers raise prices in line with inflation based on the Consumer Price Index (CPI) or the Retail Price Index (RPI). This year, from the 1st of April, millions of broadband customers are facing price hikes of 7.9% on top of their usual bill.

Broadband price rises aren't new, they came into the spotlight last year when, because of record inflation figures, broadband customers were hit with a 14.4% increase. 

For 2024, to give you an idea of what that looks like in pounds and pence, the table below shows how much customers are paying just in additional price increases.

Table 1: How much extra will I be paying in 2024 for broadband

Initial price Price increase (7.9%) New price Annual extra cost
£25 £1.98 £26.98 £23.70
£30 £2.37 £32.37 £28.44
£40 £3.16 £43.16 £37.92
£50 £3.95 £53.95 £47.40
£60 £4.74 £64.74 £56.88
£70 £5.53 £75.53 £66.36
£80 £6.32 £86.32 £75.84
£90 £7.11 £97.11 £85.32

Table 2: Example of broadband price increases over 2023 and 2024.
 

Initial price 2023 price increase 2023 monthly cost 2024 price increase 2024 monthly cost Total price hikes (2023+2024)
£25 £3.60 £28.60 £2.26 £30.86 £70.31
£30 £4.32 £34.32 £2.71 £37.03 £84.38
£40 £5.76 £45.76 £3.62 £49.38 £112.50
£50 £7.20 £57.20 £4.52 £61.72 £140.63
£60 £8.64 £68.64 £5.42 £74.06 £168.75
£70 £10.08 £80.08 £6.33 £86.41 £196.88
£80 £11.52 £91.52 £7.23 £98.75 £225.00
£85 £12.24 £97.24 £7.68 £104.92 £239.06
£90 12.96 £102.96 £8.13 £111.09 £253.13

The majority of customers are likely to be spending £30 - £40 on a broadband contract. Over the last two years, due to price increases, these customers are now paying an additional £112.50 a year since the start of their contract.

Looking at more premium tariffs, such as the Virgin Media ‘Ultimate Volt bundle’, which retailed for £85 back in June 2022. Customers would be paying almost £240 extra, just alone in price increases!

Ofcom announced a consultation in December 2023 with proposals to ban providers from linking their price rises to rates of inflation, following successive years of costly bill increases. However, for now, price increases aren’t going anywhere.

Are you looking to avoid these broadband price increases? Here are a few things to check: 

 

1. Are you eligible for a social tariff?

Broadband social tariffs are available for people receiving benefits and Universal Credit. These are discounted broadband contracts that will give you the same level of service as anyone else on the connection, but at a discounted rate.

For more information about social tariffs and how to sign up, head over to our guide to broadband on benefits.

 

2. Can you switch your contract?
 
7.4 million broadband customers are out of contract and are free to switch to a cheaper deal, which will more than compensate for the additional mid-contract price rise hike.

If you switch before the 1st of April, some providers are guaranteeing no price increases in 2024.

 

3. Don’t want to switch? Renew your contract

If you’re happy with your provider, you can renew your contract and have the opportunity to haggle it down further. However, remember, broadband providers save their best deals for new customers. So while you’ll make significant savings, you might not get the deal advertised on the providers homepage.

 

4. Were you given 30 days notice?

While your broadband provider does have the right to raise your monthly price inline with inflation (if it’s in your contract), they must give you at least 30 days notice before the price increases. 

If your provider has failed to give this adequate notice, you have the right to be exempt from the price increase.

If you think your provider has not given you 30 days notice, contact them at the earliest opportunity with evidence of this missed deadline.

 

5. Find a provider that won't increase your price mid-contract.

Some providers are pledging not to hit customers with a mid-contract price rises and keep costs fixed during the contract. . If this is important to you, look for deals with Cuckoo, Hyperoptic or YouFibre or Brsk.

Meet the author:

Broadband Expert

Alex came on board in October 2016 and in that time has risen to Broadband Genie’s resident broadband expert. For the last 7 years, he has appeared all over the UK press, giving expert advice about anything and everything related to broadband.


Specialist subject: Fighting the consumer's corner on all things broadband.

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