{"id":40811,"date":"2025-02-04T17:08:50","date_gmt":"2025-02-04T17:08:50","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=40811"},"modified":"2025-02-06T11:20:24","modified_gmt":"2025-02-06T11:20:24","slug":"uk-isp-sky-broadband-and-tv-confirms-uk-price-increases-for-2025","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2025\/02\/uk-isp-sky-broadband-and-tv-confirms-uk-price-increases-for-2025.html","title":{"rendered":"UK ISP Sky Broadband and TV Confirms Price Increases for 2025 UPDATE3"},"content":{"rendered":"

Customers of Sky UK’s (Sky Broadband<\/a>, Comcast etc.) internet, phone and TV products have today been told to brace for an average annual price increase of 6.2% (down from 6.7% last year), which will be introduced from April 2025. But broadband and phone customers who are unhappy about this will be able to exit their contracts penalty free.<\/p>\n

Sky has traditionally shunned the old inflationary (CPI + X%) linked price hike policies of their rivals, which in recent years has resulted in their annual rises being a fair bit milder, although things have since changed a bit.  The provider’s announcement claims that this year’s price increase is “either in line with or lower than other providers<\/em>” (we assume they mean ‘major’ providers) and that, over the last four years, their prices have “broadly increased in line with inflation, reflecting our ongoing commitment to fair and transparent pricing<\/em>“.<\/p>\n

However, it’s worth noting that the current CPI rate of consumer price inflation is only 2.5%, which is obviously a fair bit lower than the 6.2% increase that Sky are pledging to introduce. But the move has raised a question mark over whether Sky’s current approach to mid-contract rises is fully compatible with Ofcom<\/a>’s new pricing policy, which effectively banned mid-contract price hikes that are linked to confusing inflation and percentage-based changes (here<\/a>).<\/p>\n

Just to be clear. Ofcom<\/a>\u2019s change is NOT designed to stop mid-contract hikes completely, and is more about making future pricing clearer and simpler. But it does require providers to tell customers precisely what any future price increases will be when they sign up (\u201cin pounds and pence<\/em>\u201c). This rules out changes to \u2018core subscription\u2019 prices that are linked to unknown future inflation values or percentages.<\/p>\n

Despite this, Sky state that Ofcom<\/a>’s new policy doesn’t apply to them and, when the price notification hits, they’ll allow you to exit your contract penalty free. This is very much in keeping with how they’ve done things in past years (i.e. the more traditional approach to mid-contract hikes).<\/p>\n

Devesh Raj, Sky’s Chief Operating Officer, said:<\/strong><\/p>\n

“I also want to provide our customers with clarity on Sky\u2019s approach to price rises, against wider changes in our industry.<\/p>\n

Last month, new Ofcom regulations came into force that apply to providers who include future, inflation-linked price rises in their broadband, talk or mobile contracts. Going forwards, they\u2019ll have to publish any increases in pounds and pence.<\/p>\n

This ruling does not apply to Sky because we don\u2019t apply increases in this way.<\/strong><\/p>\n

Unlike many other major providers, our prices across broadband and talk are variable, which means customers who are in a minimum term on these products can cancel their package after being notified of a price increase, without paying early termination fees.<\/p>\n

This is why we send out detailed notifications about any changes to our prices and outline your rights to cancel. We\u2019ll confirm if and how these terms apply to you when we contact you.<\/p>\n

I hope this explains some of the decision making and context behind this year\u2019s price changes.<\/p>\n

We understand price changes can be unwelcome, but they are necessary to sustain the quality and reliability of the services you value. Our promise remains steadfast: to deliver the best in entertainment, sports, and broadband while ensuring we offer exceptional value.”<\/p><\/blockquote>\n

We’re currently asking for Ofcom’s viewpoint on this (expect an update tomorrow), although it’s worth noting that all of the broadband packages on Sky’s website are now being promoted as having their “Price locked for 24 months<\/em>“. So presumably new customers who take out one of those packages today won’t have to worry about mid-contract hikes next year, which would indeed negate the regulator’s policy.<\/p>\n

However, it\u2019s worth remembering that broadband providers are NOT immune to cost increases. Providers, much like consumers, are also suffering under the burden of rising supplier (e.g. wholesale) and lease costs, surging inflation, high energy prices, the cost of adding all sorts of new services (e.g. FTTP<\/a>) and catering for new regulations etc.<\/p>\n

Devesh Raj added: “I\u2019m proud to say we\u2019ve invested heavily over the last twelve months, so our customers now have access to more than ever before. This continued investment to deliver the best and most reliable products, along with increased supplier costs, means most of our TV and broadband customers will see a change in their price this year. But we\u2019ve made every effort to minimise the financial impact to you<\/em>.”<\/p>\n

Consumer who are hit by mid-contract hikes like this could alternatively try haggling for a lower price when the notification drops (Retentions \u2013 Tips for Cutting Your Broadband Bill<\/a><\/strong>), although your mileage may vary. Meanwhile, those on benefits (Universal Credit<\/strong> etc.) also have the option of taking a cheaper Social Tariff<\/strong> \u2013 see our Quick Guide to UK Social Tariffs<\/strong><\/a> (Sky have these too).<\/p>\n

Speaking of which, Sky said that the cost of their broadband and mobile social tariff will be frozen once again, “protecting our most vulnerable customers and ensuring they continue to have access to essential services<\/em>“. We should add the Sky’s price hikes may well also end up filtering down to their NOW TV<\/a> (NOW Broadband) sibling too.<\/p>\n

Finally, Sky added that they\u2019ve invested to grow their broadband network capacity by 27% since 2021 and, over the past few years, have also worked hard to reduce broadband faults by 26%.<\/p>\n

UPDATE 5th Feb 2025 @ 7am<\/strong><\/p>\n

Just to clarify. The ability to exit existing contracts penalty free will only apply to Sky’s broadband and phone customers – those in their minimum term on Sky TV won\u2019t be able to exit penalty free. In addition, the Essential TV package is not included in this price increase and will see no change in April.<\/p>\n

However, if a customer purchased a broadband product at the same time as a TV package, they will be able to leave their minimum term contract for both products penalty free, within 30 days of being notified of a price increase.<\/p>\n

A spokesperson for Ofcom told ISPreview:<\/strong><\/p>\n

“We\u2019ve always been clear that our new rules apply to contracts that include specified price rises from the start. The issue we were addressing was customers not having sufficient certainty about what they would pay if they were tied into price rises linked to future inflation, because it can be volatile and difficult to predict.<\/p>\n

We have had strict rules in place for years that mean if providers don\u2019t specify price rises in customers\u2019 contracts from the start, but instead make ad hoc announcements, they must give customers 30 days\u2019 notice and the right to exit penalty-free. So consumers can avoid these price rises if they want.”<\/p><\/blockquote>\n

UPDATE 5th Feb 2025 @ 9:14am<\/strong><\/p>\n

Some readers have noted a few oddities with Sky’s approach. Firstly, Sky’s website is currently promoting their broadband packages as “price locked for 24 months<\/em>“, but if you check availability and go into the order system this changes to “prices may change during 24 months contract<\/em>” – this is very contradictory messaging, and we’re seeking clarification from Sky.<\/p>\n

Secondly, over at NOW Broadband, packages are being listed differently. Both their 75Mbps and 100Mbps full fibre tiers stated that the “Price will increase by \u00a33 a month from 1 April 2025. Price may change during 24-month contract<\/em>“), while their top 300Mbps does the same but only notifies of a 50p price rise. This seems rather unfair for those on NOW’s slower\/cheaper plans.<\/p>\n

UPDATE 6th Feb 2025 @ 11:09am<\/strong><\/p>\n

Sky has confirmed to ISPreview that any customer who signs-up to them under the new price lock wording will not see their broadband price change during the minimum term specified. The reason why this wording changes during the order journey is because their standard terms do still mention that prices may vary. But the provider did agree that this was confusing and has now updated their website.<\/p>\n

The outcome is that their broadband product pages now simply state “Price may change during 24 month contract<\/em>“, rather than “price locked for 24 months<\/em>” \u2013 but there are still offers in place across relevant packages. We don’t think that’s much of an improvement.<\/p>\n","protected":false},"excerpt":{"rendered":"

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