As of 31 March 2021, the new annual BT price rises will come into effect. Set out back in September 2020, BT will increase prices –– alongside its subsidiaries EE and Plusnet –– by a dramatic 4.5%.
Which BT customers will be affected by the price increase?
The BT price increase will affect the majority of its residential customers as they are now part of the provider's T&Cs. All new BT customers who have signed up or re-contracted with BT after September 2020 with be subject to an annual price increase in line with inflation plus an additional 3.9%
On one hand this can be seen as a positive since there's no more surprises when it comes to the annual broadband price increase. On the other hand, since these significant price increases are written into your contract terms and conditions, you won't be protected by Ofcom's rules against mid-contract price increases that allow you to break your contract early without paying an exit fee.
Plusnet and EE price increase
Since Plusnet and EE are both part of the BT Group, this price increase will also impact Plusnet and EE broadband customers. This will apply across all of their services including broadband, landline, TV and mobile services as well as any add-ons you take out at the start of your contract.
If you're a BT, Plusnet or EE customer who started your contract before September 2020 and you haven't renewed it, you won't be affected until you do. However, if you choose not to renew at the end of your initial contract, your monthly prices will likely increase drastically onto out of contract prices anyway, so it's best to check your T&Cs either way.
How much is the BT price increase?
BT, like many broadband providers, shifted away from an arbitrary annual price increase in favour of aligning its price hikes with the Consumer Price Index (CPI) rate of inflation each year. This meant that customers would have have agreed to allow their prices to be increased in-line with the CPI figure which is announced at the start of the year.
The additional price increase of 3.9% will affect all new or re-contracted BT residential tarrifs.
BT broadband price increases - April 2021
BT broadband prices are set to increase by around £2-£3 a month depending on your subscription package. This could add up to an additional cost of over £70 for the length of your contract.
BT TV price increases - April 2021
Since most BT TV packages are cheaper than its broadband service, the BT TV price increases seem less dramatic, increasing by just 22p - 67p per month. However, this could add up quickly if you subribe to multiple TV packages and are signed up to BTs standard 24 month contract.
BT price increase supports network and service improvements
The message from BT is that the price increase is necessary in order to invest in the BT network and improve the service it can bring to its customers.
A BT spokesperson said,
“Back in September we made some changes to our contract terms as we started to bring all our products and brands in line with a predictable annual increase. We are currently reminding customers that these changes will start from April.
Network usage is doubling as our customers rely on us for connectivity more than ever before, and this small annual increase reflects the investment needed to support growing demand. The average increase for a broadband/ Mobile customer is less than £2 a month, meaning our customers will continue to benefit from the fastest networks, the best customer service and the safest products.”
What can BT customers do?
The BT price increase will only affect customers who sign a new contract with BT. This could be those joining BT for the first time or those signing up for another fixed-term contract. It's worth noting that BT contracts are typically 24 months long, meaning that you will be affected by at least one price increase in that time.
If you are out of contract, it would be a good idea to compare broadband deals to find out what else is available from other providers before committing to a two-year contract with BT.
If you still have concerns about additional charges or anything to do with your BT contract, then you can get in touch with them directly for clarification. At the very least you’ll be able to find out when your BT contract ends and what early termination charges you’d be liable to pay, should you wish to switch to a new provider.
Customers can contact BT in several ways:
- Phone: BT’s customer care line can be reached at 0800 800 150. It’s open Monday to Friday, 8am to 8pm, or weekends from 9am to 6pm.
- Email: You can fill out BT’s contact form and submit your complaint. BT aims to respond to emails within 24 hours.
- Live chat: BT support assistants are available via live chat from 7am to 11pm every day.
- Twitter: The @BTCare Twitter account is very responsive to public complaints on social media.