BT will be increasing its monthly prices for millions of customers by 6.4% at the end of March 2025. This is based on the January 2025 CPI inflation rate of 2.5%, plus its own extra 3.9%
However, if you signed up for a new BT contract after 10 April 2024, you will be on a fixed price increase of £3 per month instead.
If you’re a BT customer, it's unlikely you’ll be able to cancel your contract without having to pay an exit fee because these price rises are included in its terms and conditions.
However, if your current contract is ending soon (or has already finished), you will likely be able to switch away from this expensive price hike to a much cheaper deal for free.
In this guide, we’ll talk you through these price increases, why they’re happening and what you can do about them.
BT 2025 price increase
According to BT’s terms and conditions, it will be increasing its prices for most customers - whether you'e in contract or not - from the 31st March 2025.
If you're still on the same contract as you were in early 2024, this will likely be an inflation-based price increase of 6.4%. But if you signed up after 10 April 2024, you should be on a flat increase of £3 per month every year.
Each year, the provider combines the Consumer Price Index inflation rate announced in January with its own annual price increase of 3.9%. This has resulted in 2025's increase being 6.4%.
But Ofcom has recently ruled that new broadband contracts must have a fixed price increase rate instead, so customers know in pounds and pence how much their price is going up by in advance. This is what all new BT customers will see instead.
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Which BT customers are affected?
BT's annual price increase affect the majority of its broadband customers, as the policy is now part of the provider's T&Cs.
Whether you're a new joiner to BT or a long-time customer, you will very likely be subject to either its inflation-based or fixed-rate price increase.
The only people who are exempt from the annual price hike are customers who BT has classed as vulnerable, or those on BT social tariffs. This includes people signed up to the following broadband and phone services:
- BT Home Essentials
- BT Home Phone Saver
- BT Basic
How much is the BT price increase?
For those still on BT's inflation price hikes, the latest CPI rate announced in January 2025 was 2.5%. This means the total increase for this year amounts to 6.4%, as providers often add an extra 3-4% to this figure.
The extra amount you have to pay will depend on how much you currently spend on your BT services:
| Current monthly cost | Increase amount (6.4%) | Annual extra cost |
|---|---|---|
| £20 | £1.28 | £15.36 |
| £30 | £1.92 | £23.04 |
| £40 | £2.56 | £30.72 |
| £50 | £3.20 | £38.40 |
| £75 | £4.80 | £57.60 |
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When is the BT price increase?
BT prices go up annually from the 31st March. If you're a BT customer, you should first see the new increased bill from roughly this date onwards.
The provider increases its prices for both in-contract and out of contract customers on this date every year, as it states in its terms and conditions. However, BT has at times reserved a separate price increase for when your contract has ended, and these increases can be even higher than its annual inflation price hike.
So if you've been on the same BT plan for a while, make sure to check your contract to see if you're paying more than you need to. You might be able to switch to a better deal straight away.
What can BT customers do?
If BT’s annual price rise affects you, you likely won’t be able to cancel your contract or switch without paying an early termination fee. The price hike is detailed in its terms and conditions, which means you would have agreed to it when you signed up.
However, if you’ve been on your current BT contract for around two years or more, you might be able to switch or re-contract for free if your initial contract period has run out. If this has happened, you already would have had your bill increased significantly, because BT adds a further price rise once you fall out of contract.
If you think you’re out of contract with BT, you can compare broadband deals from other providers to see if you’d benefit from a cheaper, faster broadband connection.
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BT end of contract price increases
BT’s annual price increase isn’t the only hike you should expect while you’re using its services. As we mentioned above, BT will significantly increase your prices - much higher than its annual rate - once you fall out of contract with the provider.
The good news is that once your contract with BT ends, you are free to re-contract onto a new deal or switch your service to a provider that offers a better deal for you.
As your contract comes to an end, you should receive a notification from your provider beforehand telling you that your fixed term is ending. This is your opportunity to avoid an even larger bill increase as you move onto out of contract prices.
So whether your end date is approaching, or your fixed term has already ended, you need to decide whether you want to start a new package or switch to another provider.
Once you receive your notification, you should compare broadband deals to see if you could be getting a broadband service that’s better suited (and better priced) for you.
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How much is the end of contract price increase?
According to our own research in July 2024, monthly prices for BT deals could increase by a further 14% once you fall out of contract, depending on the package you use and the time you bought it.
To give you an idea of how much that is, if you pay about £30 per month for your service, that’s a difference of about £7 per month.
This is why it’s so important to know when your contract is ending and to look for a new deal when that date starts to approach. It will help you avoid another huge jump in your monthly outgoings, and you could benefit from finding an even better service than what you currently pay for.
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Contacting 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.
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