BT confirmed plans to scrap annual price rises linked to inflation back in January. However, since that initial announcement — and a 7.9% increase for millions across the UK — the telecom giant has been pretty quiet about what customers can expect to happen to their monthly bills.
But that's all changed, with the UK's largest broadband provider sharing plans to increase broadband bills by a flat amount each month starting from March 31, 2025. The changes will apply to new and existing customers.
Here's how much extra you'll need to pay:
Openreach, which is owned and operated by BT, maintains nationwide broadband and phone line infrastructure used by brands including EE, Sky, TalkTalk, Plusnet, and BT
OPENREACH PRESS OFFICEUntil now, BT has relied on the Consumer Price Index, or CPI, published by the Office for National Statistics (ONS) in January to calculate its annual price rises. BT would add 3.9% to the CPI figure to come up with its final price rise for the year, which would be applied on the next billing date from April.
But skyrocketing inflation rates have seen this method result in vast increases to broadband bills. Last year, BT broadband users were hit with a 14.4% rise — resulting in the average monthly bill of £26.90 increasing by a whopping £46.48 a year. Ouch.
Plusnet, which is also owned and operated by BT — and this week confirmed plans to scrap landlines for all customers in the coming months, has not revealed the exact price increase coming next year.
With the latest shake-up, inflation will have no bearing on your broadband bills. Unfortunately, that doesn't mean you can necessarily expect to see smaller price rises on your broadband. In fact, with inflation rates tipped to fall dramatically in the coming months, subscribers could experience higher increases than they would've seen under the CPI-linked system by the time March 31, 2025 rolls around.
Marc Allera, CEO of BT Consumer Division confirmed the exact pounds and pence increase that customers could expect in the coming months in a company blog post, writing: "The cost of living and a digitally inclusive society are now more relevant and important than ever. I’ve written before about how our annual price change is never an easy conversation to have with customers.
"But it is a necessary conversation to have to help us manage our own rising costs and investments we’re making into networks and customer service, while also protecting those customers in vulnerable circumstances, experiencing financial hardship or digital exclusion.
"It is also important to point out that our price rises have not risen in line with usage. Customers' consumption of data, across the industry, has trebled across mobile and fixed networks in the past five years alone. All this while telco services continue to make up only a small and declining share of household outgoings, representing just 3.5% of average monthly basket spend."
The BT chief confirmed that customers in financially vulnerable circumstances who rely on EE Basics or BT Home Essentials packages would not be impacted by the price rises next year.
Reacting to the announcement, Which? Director of Policy and Advocacy, Rocio Concha told GB News: "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."
Ofcom has proposed an outright ban on inflation-linked pricing. The watchdog shared research with the Government at the end of last year that revealed 4 in 10 broadband customers in the UK were on contracts subject to inflation-linked price rises.
If you’re in the minimum contract term of your broadband package, unfortunately, there’s no way to swerve these price increases – you'll just have to pay the higher bills and try to renegotiate a better deal at the end of your contract. Most minimum contract terms last between 12- or 24-months after you signed-up.
After that, you’ll be able to renegotiate a new deal with the same provider or switch to another brand.
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Switching between different broadband suppliers remains the best way to lower your monthly bills. Moving between brands that rely on BT-owned Openreach infrastructure is simple, with the new provider handling all paperwork to end your existing contract.
But if you’re looking to move from an Openreach-powered supplier to a separate network, like Virgin Media, you've still got a few months to wait before new rules should ensure that process is equally easy.
