The higher cost will appear on customer bills in April.

The 8.1% figure is equal to £5.60 a month or £67.20 for 12 months, Sky said, adding that its competitors had raised their fees nearly 10% last year and that it was the only major broadband provider that does not tie its price rises to the consumer price index (CPI) or the retail price index (RPI).  Currently companies are allowed to increase fees mid-contract in an amount equal to inflation plus about 4%.

Providers including BT, Plusnet and EE recently said they are raising fees by 14.4%. Virgin Media has announced an average increase of 13.8% on broadband, TV and phone bills in April or May, citing “significantly increased costs” alongside greater demand. 

Sky was among those saying they would not raise fees for customers on a discounted social tariff.  

‘A decision not taken lightly’

A Sky spokesperson said: “This is not a decision we have taken lightly. 

“We have tried to minimise the impact to customers with an average price increase across all our broadband and TV customers of 8.1%, which is below levels of inflation again this year – competitors’ average increase over the last two years has been nearly double Sky’s average increase over the same period.”

The company said that because its contracts don’t stipulate a specific price, its broadband customers would be able to cancel without paying early termination charges.

Ofcom probe

The announcement comes as the telecoms watchdog Ofcom said it was reviewing inflation-linked mid-contract price rises amid warnings of an “unpredictable” nature that makes it hard for customers to understand how much they’ll pay.

Consumer groups have urged providers to rethink the increases amid the cost-of-living crisis. Consumer advocates have advised people to try to haggle for a smaller increase.