All products, services and brands will be subject to the new pricing policy as BT said it wants to be an “industry leader” by introducing a simple, transparent and predictable model which also reflects regulator Ofcom’s fairness commitments

Any new, renewing or upgrading BT and EE broadband, landline, mobile and TV customers (such as BT Sport) from 1 September 2020 will see annual price hikes by the CPI measure of inflation plus 3.9% from 31 March.

For Plusnet customers, BT said it will write to them at a later date to explain changes to pricing.

Bills were previously hiked by the CPI measure of inflation alone, based on the previous January figure published by the Office for National Statistics.

But for those whose contracts started before 1 September 2020 – there’s no change to the current terms.

Going forward, customers won’t be able to leave contracts penalty-free as they would have been given notice of the price changes before signing the terms.

Those out of contract will be free to leave penalty-free or sign up to the new, steeper pricing strategy.

A BT spokesperson, said: “While we recognise that no one likes to see their prices go up, with the major growth in data usage seen recently, both at home and on the move, we want to continue to invest heavily in our networks, products and services, simplify our packages and policies, and offer greater support and flexibility to those who need it the most.

“That’s why we’re making some changes to our contract terms, and better reflect the Fairness commitments laid out by Ofcom last year, by bringing all our products and brands in line with a single annual increase, of a known and predictable amount. This is far clearer for our customers and moves away from the unpredictable changes that customers can face today across the industry.”