Broadband price increase for 2023, explained

A number of major broadband providers keen to draw in new customers routinely offer great-sounding deals. But are they all what they seem?

Some of the biggest broadband companies raise the price of their deals every year - usually in March or April. These increases are applied to your bill - whether you're a new customer or halfway through your contract period.

These price rises are linked to inflation and included as part of the terms and conditions of your contract before signing up.

But with inflation at exceedingly high levels and with no indication of lowering any time soon, it's worth considering how these charges might affect your monthly outgoings before taking on a new broadband deal.

We've compiled a list of exactly which providers have raised their prices in 2023, as well as which ones commit to keeping you on the same price for the length of your contract.

What are mid-contract price rises?

Sometimes referred to as an annual price rise, a mid-contract price rise is when your broadband provider raises the cost of what you pay during your contract term.

These price rises occur once a year and are usually based on either the Consumer Price Index (CPI) or Retail Price of Inflation (RPI) released in January of the same year the rise will be implemented, as well as an additional percentage fee to allow adjustments for rising business costs.

Under normal economic conditions, if you're with a provider that has mid-contract price rises, you should see an increase in what you pay by a percentage of around 4-5% each year, regardless of the price you initially purchased your deal at.

However, because the CPI rate released in January was so high (10.5%), price increases for 2023 were significantly higher than usual, with some providers raising their prices by up to 14.4% in April this year.

Why do some providers have annual price rises?

Inflation affects individuals and households across the UK, but it can also impact businesses, too, regardless of their size.

For broadband providers, investing in and upgrading to faster and better infrastructure and technology can be expensive. So, some providers may try to offset a percentage of these costs by implementing annual price rises within the terms and conditions of their contracts.

When did broadband prices increase?

Mid-contract price rises are usually implemented at the end of March or beginning of April each year.

Before they take effect, providers will usually announce them to its customers several weeks in advance.

I am out of contract with my broadband provider. Will I still be affected by mid-contract price rises?

Yes. If you're out of contract but are with a broadband provider that has annual price increases, your bills will increase.

Also remember that, customers who are out of contract with their current provider are already paying significantly more for their connection each month, so it may be a good idea to find a cheaper deal elsewhere as soon as possible.

Use our postcode checker to help find deals that are currently available, and remember that aside from price, other factors such as speed and how many people in your home will be using the connection and for what online activities are important to consider when determining your needs.

Ofcom's new rules on 'short and simple' contract details

On 17 June 2022, Ofcom introduced rules that would require telecom firms to provide customers with clearer and simpler information before they agree to a new deal.

Before this enforcement, providers would often hide information about price rises in their terms and conditions, making it easy to miss. Now, all telecom providers are obligated to display contract details in a short, one-page summary.

Providers must also give clear examples of any price rises, and how they will affect the cost of your contract.

Providers with a broadband price increase 2023

Most of the biggest broadband providers raise their prices annually, with them taking effect at the end of March or beginning of April each year, and based on either the Consumer Price Index (CPI) of December of the previous year, or on the Retail Price Index (RPI) from January the same year.

Also remember that in addition to either CPI or RPI, providers will tack-on an additional percentage increase, usually 3.9%.

Below is a list of which providers have raised their prices for 2023 and for what services.

BT

CommunityFibre

EE

NOW Broadband

Plusnet

Shell Energy Broadband

TalkTalk

TalkTalk's 'Fixed Plus Price Freeze'

TalkTalk provides the option for customers to avoid their annual price rises. For an additional £3 per month, the provider will “freeze” the price of your broadband bill – meaning the cost will stay the same for the life of your contract.

Sky broadband

Virgin Media

Vodafone

What is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) is the measure of the rate of inflation - which is the change in prices for goods and services over time. The Office for National Statistics publishes the CPI rate every month, based on household spending across the UK.

When calculating annual price rises, broadband providers will use the CPI published in January. The CPI printed in January will be based on figures from December the preceding year.

What is the Retail Price Index (RPI)?

The Retail Price Index (RPI) is also a measure of the rate of inflation. It considers the cost of housing like council tax and mortgage interest payments, and is generally always higher than the Consumer Price Index (CPI). It is due to be phased out by 2030.

Providers that do not have mid-contract price rises

The following broadband providers do not have mid-contract price rises baked into the terms and conditions of their contracts.

• Cuckoo Broadband
• Hyperoptic Broadband
• Utility Warehouse
• Zen Internet

Sky broadband and Virgin Media price increase

If you're mid-contract and signed up with a broadband provider that has annual price hikes as part of its contract, you usually won't be able to cancel and switch away penalty-free.

If you are with either Sky broadband or Virgin Media, however, and your contract prices have been raised, you may be able to leave penalty-free, but only within the first 30 days of receiving a price rise notification. Although this timeframe will now have passed for all customers for 2023, it is worth checking for future reference:-

Sky broadband - price increases are not written into the terms and conditions, so you are able to leave within 30 days of being notified about the increase without incurring any early termination charges. Please bear in mind that this only applies to Sky's broadband and home phone services, and not any of its TV packages.

Virgin Media broadband - Virgin did not include price hikes in its terms and conditions for 2023, so you can leave penalty-free within 30 days of receiving a a notification about the price increase. This applies to broadband, TV, and home phone services with Virgin media.

Please bear in mind that the window to do switch from Sky or Virgin Media penalty-free due to 2023 mid-contract price rises has now passed.

Cancelling without penalty

Telecoms regulator Ofcom has set out rules that state you can leave your broadband contract early if a provider increases their prices mid-contract. But only if it's above the RPI.

In this instance, you can cancel your contract and switch to another provider, as long as you do so within 30 days of being notified about the price increase.

However, if you've been forewarned about potential price rises via your provider's terms and conditions, and these price increases are linked to RPI, you won't be able to leave early. If you do decide to leave mid-contract, you will have to pay any applicable ERCs. This can be quite costly. For example, if you’ve signed up for an 18-month contract and want to cancel in the third month, you may be required to pay up to 15 month’s worth of fees.

Can I leave my broadband contract without incurring early termination fees if my monthly bill up?

If you're with a broadband provider that has annual price rises as part of their terms and conditions, and as long as your provider is only increasing charges by an amount that does not exceed an increase in CPI or RPI plus an increase of up to 3.9%, you cannot leave you contract early penalty-free.

This is because information regarding any annual rise would be listed in your contract's terms and conditions (T&Cs), and by signing-up with this provider, you agree to pay this increased amount.

My broadband bill has gone up and I didn't see this in the terms and conditions of my contract. What can I do?

If you believe that the terms and conditions mentioning in-contract price rises were not explicitly stated when signing up, and these price rises have since been enforced, you can complain to your provider.

If a complaint reaches deadlock or remains unresolved after 8 weeks, you can escalate your complaint to the ADR (Alternative `Dispute Resolution) scheme.

I can no longer afford my broadband bill. What can I do?

Ofcom has enforced rules that require telecoms firms to treat financially vulnerable customers fairly. If you're struggling to afford your broadband bills, you can contact your provider for support.

Depending on your circumstances, you may be able to switch to a cheaper broadband deal mid-contract (including to a social tariff), as well as payment holidays or deferrals.