Broadband ISP TalkTalk Confirms Huge Annual UK Price Hikes
Customers of UK ISP TalkTalk have in the last week or so started to receive notification emails that confirm the provider’s intention to hike their broadband and phone prices by 9.1% (average) from 1st April 2022, which is something that we first predicted back in January (here) due to the surging levels of inflation.
Often there are legitimate reasons for prices to go up, not least because ISPs are frequently adding all sorts of new services (e.g. FTTP), developing new systems, facing higher charges from suppliers, implementing costly new Ofcom rules and consumers are gobbling significantly more data every year. But 2022/21 was more unusual than most in that various pressures have also triggered surging levels of inflation.
The above is a problem because many of the market’s largest broadband ISPs have, over the past few years, adopted a model that directly links their annual price increases to inflation, specifically the Consumer Price Index (CPI) rate as published in January (5.4%). Often these ISPs will also add a flat % increase on top of that, which in TalkTalk’s case is an extra 3.7% (i.e. a total of 9.1%) – a tiny bit less than some rival providers use.
The latest in a long line of ISPs to officially confirm the impact is TalkTalk, which has recently been sending out the following notification email to customers (the package mentioned below is just from one example – credits to Richard).
Copy of TalkTalk’s Customer Notification
Hi XXXXXXX,
Over the last two years, we’ve seen our daily lives change, relying more and more on the connectivity in our homes. Broadband usage has soared with more working from home, online learning and gaming than ever. We have continued to invest in our network to ensure we provide all our customers with a great value connection today and in the future.
Last year we changed our terms and conditions to be in line with the Consumer Prices Index (CPI) rate of inflation +3.7%. CPI is calculated based on the rate of inflation over the 12 months to December 2021, which means that from 23rd April 2022 the price of your Fibre 65 package will go up by £2.01 a month. This increase does not include any Boosts, add-on services you currently have, or any discounts you receive on your account. We remain committed to providing all of our customers with the best value connection compared to our competitors*.
We are continually striving to deliver the benefits of new technologies to our customers. We’ve been investing in our network and full fibre rollout, which delivers speeds of up to 900Mb/s. And the great news is that you already have ultrafast connectivity available at your home. Click here to find out more about upgrading your home to Ultrafast.
As well as committing to bringing you fast, reliable broadband, we also include as standard:
– Totally unlimited data
– Free landline calls between TalkTalk customers
– 24/7 online support
– Online security
Thanks for being a loyal TalkTalk customer and relying on us to provide you a great value service. To see your full terms and conditions, visit here.
Your TalkTalk Team
Customers, once formally notified of the increase by their provider, could try haggling for a lower price (Retentions – Tips for Cutting Your Broadband Bill), although your mileage may vary. Likewise, there are still some ISPs around, often smaller players, that don’t play the annual price hikes game, but you’ll often pay a little more for those. Naturally, if you’re already out of contract, then you’ll have more flexibility to switch.
We should point out that the % price rises predicted above should be seen more as an average, with the increases for particular packages and services tending to vary.
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook and Linkedin.
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Think this is bad now, just wait until next year. Inflation is expected to top 8% and could be as high as 10%. Add 3.7 or 3.9% and you’ll be looking at another 12 to 14% rise – on top of this years!
Yeah they put the pricing up but then have a sale for new customers to join at a reduced price and the cycle continues
It will get worse until they seriously raise interest rates which is unlikely given it will crater the economy due to how indebted it is and no politician wants to take responsibility for it.
New customers always get better deal.
Those who make the effort to get a better deal should be rewarded.
That is normal to be honest, but to be fair to Plusnet I did have a good deal the last time I renewed.
I would not touch Talk Talk with a barge pole to be honest, no matter how cheap they are.
A lot of people only go with Talk Talk because they are cheapish, but if they increase the price they may lose a lot of people
Ofcom really should introduce a rule prohibiting price rises for domestic customers who are within a minimum contract period. (Apart from tax changes etc.)
It would lead to more certainty for customers and rightly place the emphasis on suppliers to forecast their future costs etc.
Completely agree with this. They get around the rules around price hikes by baking in the inflation into the contract, so customers can’t then use that as an excuse to leave. If you enter into a fixed contract, there should be zero price rises for that duration. This practise is appalling.
No ones forcing you to sign such contracts and if OFCOM did prevent them from doing it, they’d just bake it into the initial price.
Normally I would agree with what Mike said, but in reality there are cases where it IS forced. In my building BT was the only option because it is a new build. When they hold a monopoly they can put whatever they want in the contract and people will have no choice
It IS very slimy to put in the contract “oh btw we may increase the price however we wish because screw you give us more money” and “if you cancel the contract you have to pay the full amount anyway you sucker”
Sorry Mike but I find that position a little disingenuous. More and more providers are using such terms which are explicitly designed to get around the rules. As a trained lawyer, I am well aware of my rights – and choice. I actually prefer it to be baked into the initial contract – it provides certainty. And keeps the risk with the supplier to set the right price at the beginning which the consumer can choose or not to pay. However, there are few mainstream providers who set a fixed price now. And this happens across all contracts, be it mobile or fixed line. It’s an appalling practise in my opinion.
@Mike
Like Jonathan says, it’s increasing difficult to avoid automatic price increases.
I also would prefer any increase to be baked into the initial price.
It’s also particularly unfair on those who have only recently entered a contract and who then face a price rise after only a few months.
‘In my building BT was the only option because it is a new build.’
Openreach might have been the only option but only having BT as a choice for an ISP definitely not unless your building negotiated the deal and bundle it in with the service charges.
There is exactly nowhere in the UK where people can only get FTTC/P from BT’s retail business.
I got 6 months left on my 2 years contract. Still on the old terms and conditions so I should be able to leave penalty free as I’m sure they can’t just change them without notice first. Will have to see what happens when the email comes through.
Maybe be4 u put up the prices you should sort out the WiFi it’s been so rubbish lately I’m a gamer in a middle of a match and I freeze its not funny my contract runs out in October thank god I won’t be renewing with you it’s doing my head in !!!
How many gamers use Wi-fi? i mean proper gamers. Connect the computer or game console directly to the router, that is always your best bet.
Those of us who are on a state pension will find it increasingly difficult to pay for the cost of things that are all going up. There should be no increase for pensioners who are only in receipt of a state pension as a phone is a vital essential service that we need for keeping in contact with the people that we need in our lives like doctors and nurses.
You weren’t born old, those who didn’t prepare adequately for retirement only have themselves to blame.
@Mike, you have no idea what their circumstances were before they retired, they could have been in a naff job or could have retired early due to ill health.
where I work, there are a lot of people even with private pensions who say they can not afford to retire, I am dreading it to be honest.
“Last year we changed our terms and conditions to be in line with the Consumer Prices Index (CPI) rate of inflation +3.7%”
To keep the price paid “Inline” only the CPI rate should be used.
The totally bogus money grabbing additional 3.7% is nothing more than robbery.
Didn’t it start as just a CPI % increase?
Then one of them decided to add another arbitrary % in addition to the CPI %. Not to be outdone by the cunningness, everyone else followed similarly.
Everyone is putting prices up, just my broadband speed is rubbish why should I pay more and not receive a better service I will be searching for a better deal when my contact enda
The talk talk is a provider that every minutes changing the prices, the company is a cheater company, first they sing a contract and saying nothing going up, but in the middle of the contract they put £2 up and they know at that time you cannot find cheaper prices, this is breach of contract but they don’t care, one day they will be out and get nomore customer’s and I hope the people do it so, such companies should not provide and playing with the people like that, I am very happy to come out and get a new provider, if they give the extra money to the worker, it is okay but they give the sher holder more not the worker very sad
They don’t are about the people, they just thing about the own packet, the people at this time have difficulty with the budget and now again some companies don’t care
I have agreed a contract price set for 28 pounds a month if for any reason it goes up then they have breached a contract so I leave so let them try
Why are people surprised by this? Talk Talk are nothing but a shower of crooks. At the start of the covid pandemic they added on extras to my package without my knowledge or consent. And because of the pandemic I couldn’t contact them for months. Their latest trick was to sign me up for another 12 months contract. Again without my knowledge or consent. They lied and insisted I did it myself. I have ripped out their gear and signed up with Virgin Media. Talk Talk? More like Take Take!
I think prices should be fixed, or the increases should be fixed and predictable, during the minimum contract. Surely a contract should protect the consumer as well as the provider?
If the providers don’t want to absorb high inflation during a 24-month contract, then don’t do 24-month contracts any more. 12-month contracts used to be common and it’s not like it costs them a fortune to provide the service and a router. Routers aren’t expensive like mobile phones.
This. The inflation risk should fall on the supplier, not the consumer.
But it isn’t really about inflation risk – certainly the 3.9% on top isn’t.
It’s about keeping the headline cost low to attract new sign-ups, whilst making the actual price you pay (averaged over 24 months) higher.
Well it could be worse, BT are increasing prices by 9.3%.