Virgin Media, Three and Vodafone customers have recently been notified about incoming price rises for their monthly bills. But before BT customers smugly pat themselves on the back, there’s bad news about your broadband bill on the way. That’s because the Consumer Price Index rose to 0.6 percent this week.
BT relies on the Consumer Price Index, or CPI, to adjust the amount that its customers will pay each month. To calculate what customers will be paying for the following year, BT takes the CPI rate of inflation and then adds an additional 3.9 percent. So, in total, that’s a rise of 4.5 percent compared to what you’re already paying each month. For example, if your BT broadband bill clocks in around £40 a month, you’ll need to cough up an extra £1.80 on each bill. That’s around £22 extra over the course of a year.
On BT’s FAQs, it confirms that price rises will take place annually at the end of March. If you’re currently with BT, you can expect to start paying the bigger bills from April 2021.
Those who pay for multiple services from BT, including Broadband, Landline, and TV, can expect to see prices rises by a significant amount, since all of these monthly services are eligible for a price bump.
On its site, BT states: “Each year we will adjust the amount customers pay per month for their plans according to the Consumer Price Index (CPI) rate of inflation plus an additional 3.9%. The CPI rate is announced in January each year and we will adjust a customer’s bill by this amount plus an additional 3.9% from 31 March of the same year. For example, if the CPI rate announced in January 2021 is 2%, then their monthly plan prices from 31 March 2021 will increase by 5.9%. This reflects the increase in the costs to run and invest in the network and service that we provide.”
Here’s the full list of BT services that will see prices rises in line with the CPI after March 2021:
- Extra charges, like out out-of-allowance calling rates and your optional add-ons
BT confirmed that customers would see price increases once a year in line with the CPI back in September 2020. At the time, the telecom firm said that it believed this predictable annual increase would be better for customers as it would allow them to prepare. The upcoming price rises will be the first under the new simplified system from BT.
Speaking last year at the announcement of its new strategy, a spokesperson for BT said: “While we recognise that no one likes to see their prices go up, with the major growth in data usage seen recently, both at home and on the move, we want to continue to invest heavily in our networks, products and services, simplify our packages and policies, and offer greater support and flexibility to those who need it the most.
“That’s why we’re making some changes to our contract terms, and better reflect the Fairness commitments laid out by Ofcom last year, by bringing all our products and brands in line with a single annual increase, of a known and predictable amount. This is far clearer for our customers and moves away from the unpredictable changes that customers can face today across the industry.”