{"id":36676,"date":"2024-01-17T07:09:07","date_gmt":"2024-01-17T07:09:07","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=36676"},"modified":"2024-01-17T07:22:20","modified_gmt":"2024-01-17T07:22:20","slug":"jan-2024-inflation-figures-reveal-uk-broadband-isp-price-hikes","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2024\/01\/jan-2024-inflation-figures-reveal-uk-broadband-isp-price-hikes.html","title":{"rendered":"Jan 2024 Inflation Figures Reveal UK Broadband ISP Price Hikes"},"content":{"rendered":"

The Office for National Statistics<\/a> has published their latest UK inflation figures, which saw the Consumer Price Index fall to 4% (down from 10.5% this time last year) and the Retail Price Index reach 5.2% (down from 13.4%). As a result, we now know how big the annual inflation-linked price hikes will be from most of the major UK ISPs.<\/p>\n

At present almost all the biggest broadband, phone and mobile providers tend to base their annual price rises off inflation figures \u2013 CPI or RPI \u2013 as \u201cpublished<\/em>\u201d in January each year (this is actually the rate for December), which is then introduced to consumer bills between March and April of that same year. The exception being Sky Broadband<\/a>, which sets its own hikes (not inflation linked) and this usually comes in a bit lower than the rest.<\/p>\n

NOTE:<\/strong> Inflation is the general measure of how quickly prices for goods and services etc. are rising in an economy, which is often expressed as a percentage.<\/div>\n

For example, BT<\/a> (inc. EE<\/a> and Plusnet<\/a>) and Vodafone<\/a> all adopt a policy that says their average prices will rise by the level of CPI inflation, as published in January, plus an additional 3.9% (note: it’s 3.7% on TalkTalk<\/a> and \u201cup to<\/em>\u201d 3% on Shell Energy<\/a>). By comparison O2<\/a> and Virgin Media<\/a> adopt the steeper RPI rate, as published in February, plus the usual 3.9% (i.e. we\u2019ll have to wait until next month to know the figure for them).<\/p>\n

Suffice to say, the new CPI rate of 4% means that those providers adopting the CPI + 3.9% policy will shortly be increasing their prices, on average, by 7.9%<\/strong> (down from 14.4% last year). This is obviously a significant fall on last year and is thus much closer to the annual rises that ISPs tended to introduce before the CPI + X% model was even adopted (i.e. in the past ISPs tended to increase their prices by an average of around 4-6% each year).<\/p>\n

Take note that such hikes typically apply to the standard monthly rental you pay, although optional paid add-ons and call charges may well increase or even fall by a different measure. The details can vary between providers. Similarly, if you’re still on a legacy contract, then you might be subject to an entirely different policy from this.<\/p>\n

Confirmed UK Telecoms Price Hikes for 2024<\/span>
\n<\/strong><\/p>\n

\u27a4 BT<\/a> CPI + 3.9% = 7.9%<\/p>\n

\u27a4 EE<\/a> CPI + 3.9% = 7.9%<\/p>\n

\u27a4 Plusnet<\/a> CPI + 3.9% = 7.9%<\/p>\n

\u27a4 Vodafone<\/a> CPI + 3.9% = 7.9%<\/p>\n

\u27a4 O2<\/a> \/ Virgin Media<\/a>= RPI Figure expected Feb 2024 (likely hike of c.9%)
\n<\/em><\/p>\n

\u27a4 TalkTalk<\/a> CPI + 3.7% = 7.7%<\/p>\n

\u27a4 Shell Energy<\/a> CPI + 3% = 7% (assuming max of 3%)<\/p>\n

\u27a4 Three UK<\/a> CPI + 3.9% = 7.9%<\/p><\/blockquote>\n

The good news is that Ofcom<\/a> recently moved to ban mid-contract hikes that are linked to either inflation, or percentage-based, price rise terms (here<\/a>). But the regulator’s change won’t arrive in time to impact this year’s hikes (it’s expected to be introduced from late 2024), which BT has already demonstrated with its new pricing policy (here<\/a>).<\/p>\n

Likewise, it’s worth remembering that banning this policy will also increase the risk for providers. Put another way, providers still have to balance that higher risk through their pricing, which could well result in bigger price increases to compensate for greater uncertainty (the longer the contract term, the greater the uncertainty). So Ofcom<\/a>’s ban won’t necessarily make services any cheaper, only clearer, which is still an improvement as confusion was one of the main problems with the old policy.<\/p>\n

In the meantime, the best way to save money is to vote with your feet and switch ISP (where viable alternatives exist and the terms of your plan allow). But those who are happy with the service they receive, or who perhaps have no other viable options, may prefer to try haggling for a lower price when the hike hits (Retentions \u2013 Tips for Cutting Your Broadband Bill<\/a><\/strong>), although your mileage may vary \u2013 big ISPs are more responsive to this.<\/p>\n

Alternatively, there are a lot of smaller ISPs out there that only very rarely increase their prices, if at all, and quite a few of those have kept their prices frozen. In particular, if you\u2019ve recently been covered by a new alternative full fibre (FTTP<\/a>) network, then the aggressive market competition that exists often ensures that their prices stay low to help drive adoption.<\/p>\n

We should add that those who are on state benefits (Universal Credit<\/strong> etc.) may also have the option of taking a cheaper Social Tariff<\/strong>, which is another way to cut your costs \u2013 see our article on this: A Quick Guide to UK Social Tariffs \u2013 Getting Broadband for \u00a315<\/strong><\/a>. But you won\u2019t always be able to access the fastest speeds or most advanced routers \/ features with such a tariff.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Office for National Statistics has published their latest UK inflation figures, which saw the Consumer Price Index fall to 4% (down from 10.5% this time last year) and the Retail Price Index reach 5.2% (down from 13.4%). As a result, we now know how big the annual inflation-linked price hikes will be from most […]<\/p>\n","protected":false},"author":1,"featured_media":33378,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[474,405,76,32,84,38,74,475,96],"class_list":["post-36676","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-bt","tag-ee","tag-kc","tag-o2","tag-plusnet","tag-politics","tag-talktalk","tag-virgin-media","tag-vodafone"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/111770038604503727","error":""},"yoast_head":"\nJan 2024 Inflation Figures Reveal UK Broadband ISP Price Hikes - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The Office for National Statistics has published their latest UK inflation figures, which saw the Consumer Price Index fall to 4% (down from 10.5% this\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2024\/01\/jan-2024-inflation-figures-reveal-uk-broadband-isp-price-hikes.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Jan 2024 Inflation Figures Reveal UK Broadband ISP Price Hikes - 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