Beware stealth price rises on broadband contracts in the sales
Many of the major broadband providers look to attract new customers with enticing offers. However, you can't take an increasing number of these at face value - their price could increase substantially in April.
A number of broadband firms now raise the price of the majority of the deals every spring. These price increases are applied to affected customers' bills even if they're within their minimum contract period, leaving them with little choice but to accept them.
This is because inflation-linked price rises are included in the T&Cs – providers have to let you know that the cost of your deal will increase when you take out a new contract. But broadband contracts typically last either 18 or 24 months, so it's difficult to guess what the actual price rises will be when you sign up.
However, current predictions suggest that next year's increases could be substantial - so it's worth keeping them in mind before taking up a new deal. We've rounded up which providers will be raising the price of their deals in less than six months - and which ones commit to keep you on the same price for the full length of your contract.
Read our round-up of the best broadband deals to see our picks for standard and fibre broadband.
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Which broadband providers will raise prices in 2023?
Several major broadband firms raise their prices every April - they do this in line with the consumer price index (CPI) as published in January. However, they don't stop there - each chucks on an additional percentage, too.
They do have to clearly state that the amount you'll pay will be increased each year, but it's tricky to predict by how much even just months in advance, given recent economic uncertainty. However, inflation is expected to remain relatively high for the first few months of 2023 with the Bank of England predicting that it'll remain above 10% in the first quarter of the year.
If CPI sits at around 10% in January, some broadband customers will see their price increase by around 14% in April. We've outlined which big providers raise prices in this way - and by how much - below:
- BT: CPI + 3.9%
- EE Broadband: CPI + 3.9%
- Plusnet: CPI + 3.9%
- Shell Energy Broadband: CPI + 3%
- TalkTalk: CPI + 3.7%
- Vodafone: CPI + 3.9%
Research we conducted earlier this year found that next year's price rises could add an extra £113 to annual bills when compared to the amount customers were paying in early 2022.
How other providers determine prices: Sky, Now and Virgin Media
Other providers also regularly increase the price of some of their deals, but because these price rises aren't included in contracts, customers don't have to accept them - they have the power to haggle or switch once they've been notified of price increases.
Sky and its subsidiary Now Broadband both have clauses in their contract allowing for price rises. Sky announced it was increasing some prices on some of its broadband pay TV deals in February this year. However neither it nor Now Broadband apply annual increases across all of their deals.
Similarly, Virgin Media does increase prices on occasion - last January it announced it'd increase the prices of most of its deals in March of this year.
Discover which broadband providers we recommend - read our round-up of the best and worst broadband providers for 2022.
A promise not to increase prices: Hyperoptic, Utility Warehouse and Zen
How to save money on a new broadband contract
Regularly switching broadband providers is a good way to ensure you don't end up paying over the odds by being out-of-contract. While the idea of switching broadband providers can feel like a hassle - particularly if you've been with the same one for some time - in the majority of cases it's straightforward.
We've broken down switching into four simple steps. Get started using our guide on how to switch broadband provider.
When you're taking up a new deal, there are a few things to keep in mind:
- Check the T&Cs of any new contract carefully so you're aware of the provider's policy on future price rises, and check our broadband deals to see which packages we recommend.
- Some providers offer extra discounts on other services that might be worth weighing up. It's also common for them to offer switching incentives or referral bonuses. Find out more using our top tips on how to save money on your broadband and TV bills.
- Several broadband providers, including BT, Hyperoptic, Sky and Virgin Media, offer special discounted 'social' tariffs for customers who receive certain benefits. Check whether you might be eligible using our round-up of social tariffs.
Which? calls for more flexibility on broadband
Which? wants to see more done by telecoms providers to help their customers through the cost of living crisis and support those who may be struggling to afford their bills. We're calling on them to:
- Carefully consider what level of mid-contract price rise is justified in the coming year, given current inflationary pressures, and allow consumers to leave their contract without penalty when prices are increased mid-contract.
- Work to increase awareness of social or discounted tariffs, including clarifying how these differ from commercial tariffs.
- Ensure that customers moving to these social or discounted tariffs don't incur additional charges when they are signing up, such as exit fees if they're currently in contract.
- Consider providing a range of social tariff options to ensure eligible consumers can choose the right connection for their household's need.