Earlier this year, you probably received a notification that your monthly broadband bill was increasing - even if you recently purchased a new broadband deal and were under contract.
Understandably, this is incredibly frustrating. However, it has also become increasingly common in the last few years. Sadly the majority of broadband providers now raise their prices 'mid-contract', usually in March or April.
Frustrated by these increases and wondering whether there's anything you can do to reduce your bills? Well, you'll be pleased to know that there are some circumstances where you can avoid these price rises entirely.
In this guide, we've explained everything that you need to know about broadband price rises, including why they happen, when they can be avoided and what steps you can take if your provider increases your bills mid-contract.
Broadband price rises explained
Broadband price rises: at a glance
Broadband prices rises typically occur in April (although some take place at the end of March). Prior to this date (usually after January), you'll generally receive notification via letter or email from your provider stating that your bills will be increasing in line with annual inflation, which is informed by the Consumer Price Index (CPI) or the Retail Price Index (RPI).
Added to this, many broadband suppliers also bolt on their own discretionary percentage price increase, which is used to cover their own rising operational costs against inflation. This is why we can see variations in the size of the percentages in which suppliers say they will be increasing their prices.
Broadband provider are allowed to do this even when you're under contract. This is because the terms are included within your contract documents. Here you'll be able to find out details about when price rises take place, what metric they're informed by and how many additional percentage points your supplier is allowed to add.
However, we should add that Ofcom has changed the way in which suppliers can increase their prices from 2025 (more on that later).
‘Mid-contract price rises’ explained
You may also hear or see the phrase ‘mid-contract price rises’ being used in relation to this subject. In fact, we've used it a couple of times already. This basically refers to the same price increases we’ve mentioned above, but it specifically applies to those who are still under contract with their broadband provider - and ultimately, can’t do a great deal about them.
Broadband cost increase examples
So, how does this actually work, and how much do broadband prices generally increase by annually? Well, here's how much prices went up by this year:
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 questions
Have broadband prices always increased?
As we’ve alluded to earlier, these price rises are nothing new - although things are getting a bit better for customers than they used to be.
If we go back to 2019, the UK regulator Ofcom had to introduce new regulations to stop providers putting up prices whenever they wanted - something that unfortunately happened quite a lot.
However, what suppliers instead started doing (which is what we’re seeing now) is that they just wrote into our contracts that their broadband packages would be subject to these annual increases. Moreover it also removes any obligation for them to let their customers know that these rises will be happening - something that continues to catch people out.
Will broadband prices continue to rise?
As we mentioned above, Ofcom has recently revealed that it is changing how and when broadband providers can increase their prices.
As of January 2025, the regulator is banning ‘inflation-linked price rises’ in all new contracts. This means consumers will be able to enter into contracts featuring £/p information ahead of annual price rises in 2025. This should make the whole process clearer for customers.
So, although prices will still rise again next year, you should have a much better understand of how and why your bill is changing.
Can’t I just move to a cheaper provider?
When most customers receive notification that their price is rising, they immediately think of moving to a new provider. However, this isn't a step that you should really consider taking, unless you're out of contract. This is because you'll likely need to pay an early exit fee. These can be substantial and can leave you much worse off financially, even if you find a cheaper deal elsewhere.
That said, if your broadband contract is due to come to an end before April 2025, then you should make a note of exactly when it is due to finish and ensure you switch provider beforehand. Ideally, you should then also look to move to a provider that doesn't have in-contract price rises in place.
How to avoid broadband price rises
How to avoid broadband price rises now
In addition to switching provider if your current contract has expired, there are a number of other ways that you can look to avoid these broadband price rises now, including:
Haggling with your provider
If you think the prices are unfair, it's worth calling your provider and explaining your position. This move isn't guaranteed to succeed if you're under contract, but you may be able to haggle and receive a discount if you can articulate your position well.
Checking to see if you can switch for free
If the price rises go beyond what is detailed in your contract, then you may be able to switch provider without paying a penalty. It's quite rare that you'll be allowed to do this, but it is worth checking. If you believe you're able to leave penalty-free, then call your provider and ask them for confirmation.
Prove you’re not getting the right service
If you feel you’re not getting the service you’re paying for - e.g. your internet is slower than it should be on a regular basis - then you can build a case to say your supplier has broken the terms of your contract, allowing you to leave for free. However, you do need lots of evidence and additional proof to make such a scenario happen.
How to avoid broadband price rises in the future
If you’re thinking further ahead - and assuming Ofcom’s rulings don’t come into force this year - you can also try the following to circumnavigate these price rises:
Choose a provider with no price rises
It might sound obvious, but there are a few providers who haven’t raised their prices, such as Zen Internet and Hyperoptic. Plus, more suppliers are starting to offer ‘price lock’ deals that promise you won’t see increases if you sign up for things like long term contracts.
Go for shorter contracts
Another option is to pick a broadband package that has a short-term, or rolling monthly contract. These typically cost a bit more, but it gives you the flexibility to leave in a quicker timeframe if you know the prices are going up.
Save with a bundle deal
If you have things like your mobile phone or your TV services through different suppliers, it might actually work out cheaper to bundle these together with your broadband. Essentially you can negate the price rises with savings on these extras.
Find a new broadband deal
Finding the best broadband deals
Whatever approach you take here, our guide to the best broadband deals can help you find a new - and potentially cheaper - package, especially if you are looking to switch.
Alternatively, you can get an idea of what deals are on offer in your location by using our widget below. All you need to do is enter your postcode and we’ll show you all the top tariffs available to you and your property.
