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TRUSTED ADVICE TO HELP YOU GET MORE FOR YOUR MONEY
Millions of households could find their broadband bills shoot up by over £100 a year* thanks to mid-contract price rises by suppliers. So what can you do to avoid them?
When you sign up to a new broadband deal, you’d be forgiven for thinking the price that is advertised is the price you’ll be charged for the duration of your contract. However, broadband (and mobile) providers are allowed to impose ‘mid-contract’ price rises as long as it’s made clear to the customer before they sign up that this may happen.
Since December last year, Ofcom has been scrutinising broadband providers’ sales tactics to decide if consumers taking out contracts between 1 March 2021 and 16 June 2022 were in fact properly informed of this. If suppliers are found not to have been complying with the rules, Ofcom has said it will investigate individual companies.
How much more am I likely to pay?
Millions of broadband users are still likely to be hit by mid-contract price rises this month, which will vary between suppliers. The amount added is typically calculated using the rate of inflation, plus a further three to four percentage points of what is currently paid. The rate of inflation used is usually the figure from the previous December – the CPI (Consumer Price Index) was at 10.5% in December 2022. This will mean some households’ broadband bills will rise by over 14%. Based on these figures, if your monthly broadband bill had previously been around £20, you could be paying an extra £35 a year**. Enter your details into the price increase calculator at hyperoptic.com/broadband/broadbandprice-increase-calculator to see how much more you could be paying.
Can I avoid these price rises?
If you’re out of contract, there’s no obligation to stay with your existing provider when the price increases come into play – just switch to a better deal (use a price comparison website such as uswitch.com or comparethemarket.com to find one). If you’re partway through your contract, check the terms and conditions. If details of a price increase are in there, you can’t fight it.
However, if your provider tries to boost the price by more than the rate detailed in your contract, under Ofcom rules you can exit your contract penalty-free by giving 3
