Millions of out of contract broadband and mobile customers could beat April price hikes
Inflation linked price rises kick in from April - but millions could take action now and skip price rises until 2025
New customers who switch to Vodafone, Virgin Media, Community Fibre and Shell Energy Broadband won’t see a price rise until 2025
Several providers will not be not increasing prices at all, such as Hyperoptic and SMARTY
Sky Broadband, Direct Save Telecom and Giganet customers can leave penalty free if they face a price increase
Customers who have stayed with the same provider will face an aggregate 23.4% bill rise since March 2023 [1]
Experts at Uswitch.com say broadband and mobile customers should check if they can switch now to avoid overpaying
Around 11 million broadband and 36 million mobile customers will experience an inflation linked price increase in April [2], but many can take action now to skip this year's price rises, according to Uswitch.com, the comparison and switching service.
April price rises are expected to add an extra £27.19 and £24.23 annually to broadband and mobile bills respectively for those on current market deals [3], equating to an estimated total of £92.5 million over 12 months for all those affected [3]. But for customers who have stayed with the same provider, this means an aggregate 23.4% bill rise since March 2023 [1].
Who can beat the price rises
Around 4.2 million consumers are out of contract on their broadband [4], and are therefore free to switch providers now if they wish to escape potential upcoming price increases.
The majority still in contract will not be able to avoid the pending price hikes without paying a penalty exit fee - but there are still options for many.
Sky Broadband, Direct Save Telecom and Giganet all allow customers to leave penalty free if they wish within the 30 day window of the price rise announcement - although this does not apply to Sky TV customers.
How to beat the price rises For those searching for a new broadband service, both Vodafone and Community Fibre are freezing prices until 2025 for those switching now ahead of the April increases.
Shell Energy Broadband also guarantees no price rises for new customers joining after 22nd January 2024 until subsequent years of their agreement.
Commitment to no price increases
For customers who wish to dodge price increases altogether, several providers have committed to fixed prices for the duration of a contract.
Smaller regional alternative networks, such as Trooli, Zen Internet and Hyperoptic, offer full fibre deals and have committed to not hiking their costs for consumers throughout their current contract agreements.
For those looking to save on their mobile phones, customers with providers such as Giffgaff, Talkmobile, Lebara, SMARTY, iD Mobile and Sky Mobile can rest assured these providers are committed to not increasing their prices mid-contract.
Ernest Doku, telecoms expert at Uswitch.com, comments: “Unfortunately, there are now fewer providers allowing consumers to make a clean exit from their existing contract without penalty fees, should prices go up.
“If you’re out of contract - now is the time to take action before the April rises kick in.
“If you don’t know when your contract ends - this is a good moment to find out. This is especially true if you haven’t moved in the past 18 or 24 months as you’re very likely to be at or nearing the end of your contract and significantly cheaper options will be out there.
“There are also a good number of providers now opting to not increase their prices at all, with full fibre broadband brands such as Hyperoptic, and several mobile SIM providers, such as SMARTY, offering competitive deals.
“If you don’t want to switch, you can always negotiate. Run a comparison and take those competitor prices back to your current provider and ask for a better deal. Providers will be keen to hang on to customers, so there’s usually room for haggling if you’d rather stay where you are.”
Ernest Doku’s tips to beat the broadband price hikes:
Check if you can save before April:
If you are out of contract: You’re in a good position to make a saving right away, as you’re no longer tied to your contract and can avoid your provider's price rises, if it has any. Use a comparison website to see your options.
If you’re part way through your contract: Check if you are with a provider which allows you to exit without penalty. This will be within the listed terms and conditions. Even if there is a charge to switch, this may still offer you a saving in the longer term, but you should weigh-up your decision based on personal circumstances.
If you have no existing contract: If available in your area, it is worth considering whether you can access a provider with no price rises. Several smaller regional full fibre providers, known as ‘alternative networks’ have committed to no increases so you could end up making a saving, if one covers your region.
If you can’t switch, sign up: Uswitch provides up-to-date consumer information on the mobile and broadband market. Sign up for the latest deals so you’re fully clued-up on the market when you are able to switch in future.
Tips for mobile customers:
Switch to a SIM-only contract: If you find your mobile bill is going up, you might find a SIM-only deal could save you up to £321 per year, particularly if your handset is already paid off. There are also several SIM-only providers, such as Lebara, which do not have mid-contract price increases and come with low monthly costs.
Text 85075: Check how much it would cost to leave your current contract by texting INFO to 85075. You will receive a text message confirming if you have to pay exit fees to leave your provider
Consider your mobile data usage: Many Brits are currently paying for more mobile data than they need. If you regularly have data left over at the end of the month, consider reducing the data in your plan to save money
For more information on mid-contract price hikes, visit Uswitch’s guide.
ENDS
Chris Thomas
PR Contractor
v-chris.thomas@rvu.co.uk
[1] 23% aggregate price increase is the combined CPI + 3.9% of 2023 (14.4% increase) and 2024 (7.9% increase), when added onto the previous year's total. Exact Aggregate total is 23.4%.
[2] 11 million broadband and 36 million mobile customers are on contracts subject to mid-contract price rises according to Ofcom.
[3] £27.19 for average broadband bill annual increase and £24.23 for average mobile bill annual increase are based on the average monthly bill (according to Uswitch data), multiplied by 12, after the CPI + 3.9% is added on.The calculation is weighted for those on mid-contract price rises respectively (11 million broadband customers and 26 million mobile customers).
Total UK broadband and mobile bill increase per month = total broadband increase + total mobile increase = £92,538,230
Total broadband increase per month = (average monthly bill from Uswitch data (£27.19) x (CPI figure + 3.9%)) x number of broadband customers on contracts with price rise increase (based on 11 million). Total = £23,628,110
Total mobile increase per month - (average monthly bill from Uswitch data (£24.23) x (CPI figure + 3.9%) x number of mobile customers on contracts with price rise increase (based on 36 million) Total = £68,910,120
[4] Opinium surveyed a sample of 2,000 UK adults from the 9th to 13th February and 20th to 23rd February. Results have been weighted to be nationally representative..4.2 million out of contract broadband customers:Respondents were asked: ‘To your knowledge has your broadband contract expired? Please think if you have gone over the initial term of the contract, e.g. 12 months, but you are still paying for and receiving a broadband package. 15% indicated that they are out of contact. 15% of 28 million fixed broadband lines in the UK equates to 4.2 million out of contract users.
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.