Wondering why your broadband price is going up? Here, we explain what’s going on and how and why providers do this…
If you’re a broadband customer in 2024, you might have received a notification from your provider that your monthly bills will be going up – even if you’ve recently got a new broadband deal.
While this can of course be a frustrating thing to happen, the reality is that it’s not necessarily anything new and it’s a practice we’ve seen happening over the last few years.
That said, there are some circumstances where you can avoid these price rises – and sadly some where you can’t. Here we’ve explained all you need to know about broadband price rises, why they happen and offer some steps you can take to steer clear of them.Broadband price rises explainedBroadband price rises: at a glance
Each April, broadband prices typically rise. The increases are meant to be in line with annual inflation – which is informed by the Consumer Price Index (CPI) or the Retail Price Index and these days this is something that’s written into our supplier contracts.
Some broadband suppliers also have their own discretionary percentage price increases to cover their own rising operational costs against inflation, which they may bolt on at the same time. This is why we can see variations in the size of the percentages in which suppliers say they will be increasing their prices. ‘Mid-contract price rises’ explained
You may also hear or see the phrase ‘mid-contract price rises’ being used in relation to this subject. This basically refers to the same price increases we’ve mentioned above, but specifically for those who are still under contract with their broadband provider – and ultimately, can’t do a great deal about them.Broadband cost increase examples
The CPI rose by 4% in the 12 months up to January 2024, according to the ONS, and this is the base rate most broadband providers have used this year. However, some have taken a snapshot from February and then included their additional increases. As such, the majority of the UK’s ISPs have surpassed the standard 4%.
Here’s a selection of some examples for April 2024 of provider price increases, from highest to lowest:
Virgin Media – 8.8% (February RPI rate + 3.9%)
BT – 7.9% (CPI rate + 3.9%)
Plusnet – 7.9% (CPI rate + 3.9%)
EE – 7.9% (CPI rate + 3.9%)
Vodafone – 7.9% (CPI rate + 3.9%)
Three – 7.9% (CPI rate + 3.9%)
TalkTalk – 7.7% (CPI rate + 3.7%)
Sky – 6.7% average (not in relation to CPI)Broadband price rises – frequently asked questionsHave broadband prices always increased?
As we’ve alluded to earlier, these price rises are nothing new – although things are getting a bit better than they used to be.
