Inflation-linked price rises hit telecoms customers from April – but taking action now could mean skipping the price hikes until 2025.
About 11 million broadband and 36 million mobile customers will experience an inflation-linked price increase in April, according to Uswitch.com.
The price comparison site calculated that the April price rises are expected to add an extra £27.19 and £24.23 annually to broadband and mobile bills respectively for those on current market deals.
But those customers who are out of contract on their broadband or mobile are free to switch providers – doing so means avoiding the upcoming price increases. Those still under contract will not be able to avoid the pending price hikes without paying a penalty exit fee – but some could still benefit from switching.
Sky Broadband, Direct Save Telecom and Giganet all allow customers to leave penalty-free if they wish within the 30-day window of the price rise announcement – although this does not apply to Sky TV customers.
For those searching for a new broadband service, both Vodafone and Community Fibre are freezing prices until 2025 for those switching now ahead of the April increases.
Shell Energy Broadband also guarantees no price rises for new customers joining after 22 January 2024 until subsequent years of their agreement.
For customers who wish to dodge price increases altogether, several providers have committed to fixed prices for the duration of a contract.
Smaller regional alternative networks, such as Trooli, Zen Internet and Hyperoptic, offer full-fibre deals and have committed to not hiking their costs for consumers throughout their current contract agreements.
For those looking to save on their mobile phones, customers with providers such as Giffgaff, Talkmobile, Lebara, SMARTY, iD Mobile and Sky Mobile can rest assured that these providers are committed to not increasing their prices mid-contract.
Ernest Doku, telecoms expert at Uswitch.com, said: “Unfortunately, there are now fewer providers allowing consumers to make a clean exit from their existing contract without penalty fees, should prices go up.
“If you’re out of contract, now is the time to take action before the April rises kick in. If you don’t know when your contract ends – this is a good moment to find out. This is especially true if you haven’t moved in the past 18 or 24 months, as you’re very likely to be at or nearing the end of your contract, and significantly cheaper options will be out there.
“There are also a good number of providers now opting to not increase their prices at all, with full-fibre broadband brands such as Hyperoptic, and several mobile SIM providers, such as SMARTY, offering competitive deals.
“If you don’t want to switch, you can always negotiate. Run a comparison and take those competitor prices back to your current provider and ask for a better deal. Providers will be keen to hang on to customers, so there’s usually room for haggling if you’d rather stay where you are.”
How to beat the broadband price hikes
If you are out of contract, use a price comparison website to see if there is a cheaper deal you can switch to.
If you’re part way through your contract, check if your provider allows you to exit without penalty. This will be within the listed terms and conditions. Even if there is a charge to switch, this may still offer you a saving in the longer term, but you should do the sums first.
How to beat the mobile price hikes
If your handset is already paid off, consider switching to a SIM-only contract. There are also several SIM-only providers, such as Lebara, that do not have mid-contract price increases and come with low monthly costs.
Text 85075: Check how much it would cost to leave your current contract by texting INFO to 85075. You will receive a text message confirming if you have to pay exit fees to leave your provider
Consider your mobile data usage. Many mobile users pay for more mobile data than they need. If you regularly have data left over at the end of the month, consider reducing the data in your plan to save money.
Related: Broadband billpayers braced for up to 10.4% price hikes in 2024
