Here's Why Your Broadband Prices Have Increased by as Much as 8.8% in 2024, Even If You're Currently in the Middle of Your Contract

Based on the inflation figures announced in 2024, monthly prices for millions of broadband customers increased by up to 8.8%.

Many broadband and mobile providers hike their prices each year to combat the inflation rate and rising business costs. They can even do this if you’ve agreed to a fixed monthly rate for your contract period.

Broadband Price Hikes in 2024

Unfortunately, even if you're in the middle of your contract, your broadband bill likely went up in April 2024. This is because most broadband providers have annual price hikes linked to the inflation rate, set in their terms and conditions.

Some customers won't be affected by these price rises because they're with a provider that fixes their cost for the whole contract. But these are often smaller providers who aren't as widely available as the big brands.

People on a broadband social tariff will also be exempt from these price rises. So if you're on government financial support like Universal Credit or PIP, you will likely be eligible for a discounted, no-price-rise deal.

What Are Mid-Contract Price Rises?

Mid-contract price rises are when a provider hikes the cost of your monthly broadband bill during your contract term.

They usually occur once per year, and they're roughly tied to the Consumer Price Index (CPI) or Retail Price Index (RPI) inflation rate published at the beginning of each year.

To combat rising business costs, many providers add their own set amount of about 3% to their price rises, which they claim is to ensure they can afford those rising costs each year.

This usually means a price increase of about 4-5% each year, regardless of the price you initially purchased your deal at. But since the inflation rate is still recovering from a 30-year high in 2023, price hikes are still higher than normal.

As a result, many providers raised prices by up to 7.9% in April 2024. But Virgin Media, in particular, increased prices by 8.8%.

How much did my broadband bill go up by in 2024?

The inflation rate in January 2024 was 4%, meaning most broadband prices went up by up to 7.9% this year, after you take into account the 3-4% yearly increase that many providers have in their T&Cs. Taking the 7.9% increase rate would increase your costs by the following amounts:

Which Broadband Providers Increase Your Prices Mid-Contract?

Most major broadband providers in the UK have clauses in their contracts that allow for annual price increases. The extent of these increases varies, but they are generally linked to the CPI or RPI inflation rate plus an additional percentage set by the provider.

When Do My Broadband Prices Go Up?

These annual broadband price increases happen around April each year. Broadband providers tend to make their price rises effective around the Spring, but they usually announce them a few weeks beforehand. So you should have heard from your provider about any potential price increase in February or March 2024.

These price rises also take effect if you're out of contract. But if your initial contract term has ended, you're able to switch to a cheaper deal right away.

There are lots of offers out there for a very reasonable price - just make sure to avoid packages that are too slow for your household's needs.

Can I Leave My Contract if My Prices Go Up?

This depends on the terms and conditions you agreed to when you signed up with your current provider.

Usually, a fixed contract for a service means you’ve agreed to pay a specific monthly price for a set time. This works both ways — your provider agrees to charge you that same amount each month, and you agree to pay that amount on an agreed date.

However, when you sign up for a broadband contract, you need to accept the terms and conditions (T&Cs) the provider has in place to use its services.

Nowadays, most broadband and mobile providers include in their T&Cs that they can increase your monthly bill by a certain amount each year.

You don’t have to accept these terms, but you won’t be able to sign up for a provider that includes these charges if so. In this case, you’ll have to find a provider that doesn’t include a yearly price rise, but they are few and far between.

Essentially, if you continue to sign up with a provider that mentions price increases in its T&Cs, you will have officially agreed to pay that increased amount when charged. If you want to leave your contract early as a result, you will have to pay early exit fees to do so.

This might seem unfair, given that these terms are often hidden away among a lot of text that most people never read. But if you’re concerned about this before joining a new provider, it's important to specifically search for any mention of price rises in the T&Cs.