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Inflation-linked BT Broadband and mobile price rises scrapped

BT broadband and mobile customers will no longer face yearly price hikes based on UK inflation rates, but will this actually save you money?

A photo of Dom Limberg, the author

By Dom Limberg

Published on: 1 February 2024

5 min read

Inflation-linked BT Broadband and mobile price rises scrapped

BT are the first major broadband and mobile provider in the UK to commit to scrapping inflation-based price hikes, following backlash from UK consumers over large in-contract price rises. However, this change won’t come into effect until 2025 so BT mobile and broadband customers need to be prepared to still pay higher prices this year.

Currently, customers of BT (and other providers like Plusnet, EE and Virgin Media) will experience price increases every spring. This latest announcement from BT may be welcomed by customers who are worried about the service becoming unaffordable in the future

Removing inflation-linked rises can be great news for some customers but set price rises could actually lead to higher costs for others. Only time will tell whether these changes from BT will have a positive or negative impact on their millions of customers overall.

Note: You are within your rights to cancel your broadband or mobile contract if price increases make it too expensive for you. However, you may face charges to do this so you should weigh up if cancelling will really save you money before making any decisions.

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60-Second Summary – Inflation-linked BT Broadband and mobile price rises scrapped

BT mobile and broadband customers will no longer have to deal with large annual inflation based price rises as of 2025. This could be considered a good first step towards more affordable long term contracts for consumers who may be experiencing financial difficulty due to price rises in other areas.

  • BT plans to stop inflation-based price increases from 2025, implementing a fixed increase of at least £1.50 per month for mobile customers and £3 per month for broadband customers.
  • Removing inflation-based increases doesn’t mean that BT customers won’t still experience price increases each year. BT now plan to increase prices based on a set figure, rather than a percentage of your current payments.
  • These changes will also affect EE and Plusnet customers, who operate on the same network as BT and are part of the ‘BT Group‘.

Customers won’t benefit from these changes announced by BT until next year (2025). It’s also important to note that removing inflation based rises doesn’t mean that prices will remain fixed.

BT are replacing the current system with a price increase that is a set figure rather than a percentage. This means an increase of at least £1.50 per month for BT mobile customers and £3 per month for BT broadband customers.

At the moment, BT customers will pay 3.9% more (plus an inflation figure) each spring and BT base this rate on the UK Consumer Price Index (CPI). As of December 2023, this rate was 4%, so BT customers will receive a price increase of 7.9% in either March or April

While this does seem like an innovative move from BT, it has been noted by many financial experts that Ofcom had already been considering banning inflation-based rises. This could mean BT was simply trying to get out ahead of this decision, rather than being forced into making these changes at a later date.

EE, Plusnet and BT all operate within the same network, so the new system will also apply to EE and Plusnet customers from 2025.

It’s possible that other networks will make similar changes over the next couple of years, especially if Ofcom move to ban inflation-linked price increases.

While switching from inflation based increases might seem like brilliant news at first glance, it won’t always mean that you pay less. With BT implementing a set price increase rather than a percentage increase, this could mean people on lower cost plans will actually pay more than with an inflation-linked increase. Something similar happened last year with NOW Broadband where some customers ended up with a 15% price rise based on a £3.50 per month increase.

It can certainly be frustrating to have to deal with higher prices throughout your contract and especially for services like broadband or mobile that can be essential for many households.

Something else that is very important to be aware of is that you won’t be able to cancel your contract early without facing fees based on price increases. This is agreeing to price increases will be written into your initial contract and you will be viewed as having already agreed to this.

If you are struggling with costs and want to speak to BT about changing or cancelling your contract, you can contact them in the following ways.

BT contact details (mobile and broadband customers)

Tel. 0330 1234 150 (or dial 150 from your BT mobile)

Tel. +44 150 174 7714 (overseas customers)

Opening hours – Monday to Friday 8am – 9pm (8am – 8pm on weekends and Bank Holidays)

Note: UK calls to these numbers will be free if you call from a BT network phone number but calls from other networks may incur charges.

BT – Your Contact Options

How much is BT WiFi per month?

The cost of BT WiFi (broadband) each month will vary between customers based on the contract and plan chosen. There are various options available, so if you were considering switching over to BT you should look at all the available plans and choose the one that works best for how much you want to pay.

Prices will increase each year, so be prepared that you will usually have to pay slightly more each year.

Is Plusnet owned by BT?

BT owns several other brands which are EE, Plusnet and Openreach and all of these operate within the BT Group.

While the companies do operate separately and have separate customers, they use the same network and often collaborate with each other to create new contracts and deals for customers.

Is Virgin Broadband better than BT?

Some consumers view Virgin Broadband as a better option compared to BT based on factors like speed and value for money. Ultimately, the ‘right’ choice for broadband will vary based on your own situation and how much you can afford to pay.

If price is your main concern, it can be helpful to check available prices across all UK providers by using a price comparison site like Compare the Market or MoneySupermarket. This can help give you a quick indication of what prices are available before you look at the deals in more detail.

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