How Much Your Broadband and Mobile Bill Will Increase in April

A new ban on confusing mid-contract price hikes is set to shake up the mobile bill and broadband industries. While the changes aim to protect customers, some might still see their bills rise. The regulation, effective from January 17, requires providers to clearly inform customers of price increases in “pounds and pence,” ending practices tied to volatile inflation rates. But how will this affect consumers in practice? Let’s break it down.

What the New Regulation Means for Consumers

The telecom industry has long relied on inflation-linked pricing, often leaving customers with unpredictable and steep bills. The latest regulations aim to change this by eliminating such practices.

While this is a step forward, experts warn that not all customers will benefit equally. Some could still face significant increases depending on their provider and contract terms.

Clarity and Fairness in Pricing

The updated rules mandate that broadband and mobile providers must clearly state any mid-contract price hikes in fixed amounts, giving consumers more transparency and predictability in their bills.

• Old system: Providers could adjust prices based on inflation rates plus an additional percentage.
• New system: Mid-contract increases are fixed, regardless of inflation.

An Ofcom spokesperson emphasised the importance of this change, noting that customers will now have a clearer understanding of what they’ll pay when signing up for a contract.

Impact on Inflation-Linked Increases

Previously, inflation-linked increases caused substantial spikes in bills, with some rising as much as 17% in 2023. While the new rules eliminate this practice, some experts argue that flat-rate increases could still be unfavourable for customers on lower-priced plans.

Expected Mobile Bill and Broadband Price Hikes by Provider

Under the new rules, most major providers have announced fixed increases for broadband, mobile, and TV contracts. These hikes vary based on the type of service and contract.

While the increases are now more predictable, they still represent a burden for many households already grappling with rising costs elsewhere.

BT and EE

Both BT and EE have announced similar price hikes:

• Mobile plans: Increase of £1.50 per month.
• TV subscriptions: Additional £2 per month.
• Broadband services: Extra £3 monthly.

Customers on social tariffs or financially vulnerable individuals using BT’s Home Essentials or EE Basics plans are exempt from these increases.

O2 and Plusnet

For O2 and Plusnet, changes are also coming in April, with variations depending on the service offered. These adjustments reflect the providers’ efforts to comply with new regulations while maintaining revenue streams.

• O2:
  • Airtime bills to rise by £1.80 monthly.
  • Device repayment fees remain unchanged.
  • Social tariff and pay-as-you-go users are not affected.
• Plusnet:
  • Monthly broadband costs will increase by £3.

Three and Virgin Media

Three and Virgin Media will implement similar hikes, but customers on certain tariffs may avoid these changes. Here’s what to expect.

• Three:
  • Increases vary by data allowance:
    • £1 per month for allowances of 4GB or less.
    • £1.25 per month for allowances between 5GB and 99GB.
    • £1.50 per month for 100GB or more.
  • Broadband users face a capped £2 monthly hike.
• Virgin Media:
  • Standard monthly bills to rise by £3.50, excluding customers on social tariffs.

Vodafone

Similar to other providers, Vodafone has structured its price increases based on the type of service and customer profile. Social tariffs and vulnerable users remain protected.

• Broadband: Increase of £3 per month.
• Mobile plans: Rises of either £1 or £1.80 per month, depending on the contract.
• Customers on social tariffs, pay-as-you-go plans, or identified as financially vulnerable are exempt.

Will the New Rules Protect All Consumers?

The ban on inflation-linked pricing provides a more predictable framework for customers. However, flat-rate increases might disproportionately impact those with smaller mobile bills and broadband bills.

For customers with lower-priced plans, the percentage increase can feel steep. On the other hand, those with higher-priced contracts may benefit slightly under the fixed hike system.

Benefits and Drawbacks

While the changes bring clarity, they don’t necessarily eliminate “unfair” rises for everyone. Consumer experts warn that certain demographics might still feel the strain of higher bills.

• Customers with smaller bills face larger percentage increases.
• High-paying subscribers may see smaller relative changes, despite flat-rate adjustments.

The new rules aim to make mobile bills more transparent by replacing inflation-linked hikes with fixed increases. While

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