Both telecoms providers have introduced ‘pounds and pence’ price rises following an Ofcom consultation into price hikes.
BT and EE announced in January that they would move away from inflation-linked price rises for their mobile, TV and broadband customers – and have now introduced a new price change model, which began on 10 April.
Up until now, BT and EE used a model that was introduced in response to Ofcom’s Fairness for Customers commitments in 2019 that adjusts customer pricing every year, on 31 March, by the rate of inflation (CPI) +3.9%.
But from now on, in line with Ofcom’s guidance to move from percentage figures and CPI-linked changes, new and upgrading BT and EE customers’ prices will be increased in monetary amounts. Plusnet will follow later this summer.
From 31 March 2025, for new and re-contracting mobile customers, this annual increase will be an extra £1.50 per month. It will be £1.50 per month for connected devices (including laptops, tablets and smart watches), £2 per month for TV customers, and £3 per month for broadband customers. Out-of-bundle services will be subject to an annual 5% increase.
Rocio Concha, Which? director of policy and advocacy, said: “It’s positive that new and re-contracting BT and EE customers will no longer have to face unpredictable inflation-linked price hikes. However, a lot of existing customers will still be reeling from the inflation-busting hikes they were hit with at the beginning of this month, and will be eager to get out of their contracts as soon as possible – while Plusnet customers will still face these hikes for the time being.
“This move shows there’s nothing stopping other major broadband and mobile firms from following suit to banish unpredictable price hikes as soon as possible. Ofcom must stick to its proposed timeline for implementing a ban, and ensure there are no delays, to prevent more consumers being stung with these unpredictable increases.”
