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Home phone costs soar by 29% in three years

  • The cost of renting a landline has risen by more than a quarter (29%) over the past three years

  • Big four broadband providers to hike landline prices by an inflation-busting 6%

  • Line rental prices to exceed £16 for the first time, with BT and Virgin Media charging £16.99 per month for customers paying by monthly direct debit, closely followed by TalkTalk charging £16.70

  • Brits are currently paying £35 per year more for landlines than in 2011 and this will rise to £42 when new price hikes kick in

  • Customers can save over £80 a year by switching provider and paying for line rental upfront .

As Virgin Media confirmed yesterday that it’s increasing the price of monthly home phone rental by 6.25%, Uswitch.com, the price comparison and switching service, has discovered the cost of a landline has increased by more than a quarter (29%) since 2011.

The figure takes into account the latest inflation-busting price hikes announced by the big four providers, BT, Sky, TalkTalk and yesterday’s from Virgin Media. All will increase their prices from December 1st 2014 apart from Virgin Media whose customers will see an increase from February 1st 2015. Monthly line rental will exceed the £16 mark for the first time.

The latest wave of landline price hikes will increase home phone costs by an average of 6% – 4.7% above the current rate of inflation.It means consumers will now pay an extra £42 per year on average for line rental, compared to 2011l.

Of the four main providers, BT and Virgin Media are demanding an increase of 6.25%, which will bring the cost of their line rental to £16.99 a month, 14% higher than the current average monthly cost of a landline, which is £14.93. Last month, TalkTalk announced that it was increasing prices by 4.70%, making it the second most expensive. Sky made the biggest overall increase at 6.49% but is still the cheapest of the big four.

While customers out of contract can leave penalty free at any time, those consumers who are mid-contract generally have 30 days to contact their provider once they are informed of the price rise, should they want to terminate their contract.

The table below shows the existing line rental costs across the four main providers, and how these will change following the price rises.

Landline price rises for customers paying by monthly direct debit
ProviderExisting cost per monthNew cost per monthIncreasePercentage increaseWhen?
BT£15.99£16.99+£1.006.25%1st December 2014
Sky£15.40£16.40+£1.006.49%1st December 2014
TalkTalk£15.95£16.70+£0.754.70%1st December 2014
Virgin Media£15.99£16.99+£1.006.25%1st February 2015

Source: Uswitch.com, data correct on 19/11/14

Ewan Taylor-Gibson, broadband expert at Uswitch.com, says: “Rising landline costs are an industry-wide problem that’s getting worse, year after year. Our landlines are, in most cases, a requirement for home broadband, so many of us have little choice but to pay the increase. And it’s all the more irritating when our hardly-used home phones are sitting there, gathering dust.

“While providers are working hard to keep services such as broadband as competitive as possible, we are seeing additional costs creep into other areas. The price hikes especially affect those who tend to be less regular home internet users, such as the older generation, who are forced to swallow the higher cost without seeing any of the benefits.

“If you only use a landline, and aren’t interested in a combined broadband and home phone package, there are some good discounts to be had. Paying annually can help to reduce the cost of your home phone by more than £80 a year if you are willing to switch provider.

“It’s good housekeeping to regularly review your home phone costs, to check when your contract is up and make sure you are getting the best deal. If you also have broadband and TV with your home phone provider, it’s worth doing your research and taking advantage of low introductory offers, as this could make you some significant savings.”

For more information visit www.uS**w**itch.com or call 0800 093 0607

-Ends-

FOR MORE INFORMATION

Lucy Smart

Phone: 020 7148 4663

Email: lucy.smart@uswitch.com

Twitter: @UswitchPR

Notes to editors

1.Calculated using the average monthly line rental price available through www.uswitch.com, taking into account all contract lengths. Figures on the 1st August 2011 (£12.02) and for the price rises announced as of 19th November 2014 (£15.54). This is for the main home phone providers listed (at the time), showing an increase of 29%. All prices are paying by monthly direct debit and the 19th November figure includes the new pricing effective from 1st December 2014 and 1st February 2015 respectively. Price increases are for BT, Sky, TalkTalk and Virgin Media. 2.Percentage increase based on the difference between the average of the big four provider’s current prices (£15.80) and new pricing effective from 1st December and 1st February (£16.77). 3.http://www.productsandservices.bt.com/products/phone/?s_cid=con_FURL_phones and http://www.ispreview.co.uk/index.php/2014/11/virgin-media-uk-set-raise-broadband-phone-prices.html and http://sales.talktalk.co.uk/pricing/info/pricing-notification 4.Brits are currently paying £2.91 a month or £34.92 per year extra compared to 2011, based on the difference in monthly price between figures taken on 1st August 2011 (£12.02) and existing landline prices pre 1st December (£14.93). 5.The increase is based on the difference in average monthly price between figures taken on 1st August 2011 (£12.02) and the new pricing effective from 1st December 2014 and 1st February 2015 (£15.54). Customers will pay £3.52 a month and £42.24 per year more than 2011 following the new price increases from 1st December and 1st February. 6.Inflation in October was 1.3% according to the CPI: http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/october-2014/stb---consumer-price-indices---october-2014.html 7.See table above 8.£14.93 is the average monthly landline rental across the main home phone providers before the new price rises are introduced from December 1st and February 1st. The percentage difference between the current average and BT and Virgin Media’s new price of £16.99 a month is 14%. 9.From the 1st December 2014, BT and Virgin Media offer landline rental at £203.88 a year, paid by monthly direct debit. Post Office offer a landline rental saver at £120 a year if paid upfront, offering consumers savings of over £80 a year. Prices as of 19th November 2014.

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