A MAJOR broadband and mobile provider is to hike bills by up to £36 in a matter of weeks.
A number of Vodafone‘s 18.3million customers will see prices increase come April.
Vodafone will increase products[/caption]
The price hike comes as part of the firm’s annual mid-contract price rise, which means bills will go up automatically for many customers.
It follows similar increases from Sky, BT and EE with some providers hiking bills by as much as 13%.
If you signed your Vodafone contract before, July 2 2024 your price rise will be based on December’s Consumer Prices Index (CPI) which hit 2.5%.
There will also be an additional 3.9% increase set by the company.
Now for customers whose contracts started before July 2nd 2024 their average broadband contract will increase by £22.73 to £378.
Meanwhile for customers whose contracts started after July 2 2024 their annual bill will rise by £36 to £391.
Vodafone mobile customers – who started their contract before July 2 2024 – will see their £284.40 yearly bill rise by £15.90 to £264.
While those who started after, excluding Vodafone Basic customers, will see their bill rise by £21.60 to £270.
The new pricing system follows an Ofcom crackdown on mid-contract price rises that catch customers out.
As of January 15, providers have banned from doing this in percentage terms and now have to include an exact pounds and pence figure in your contract – but this will still mean customers have to pay extra.
Vodafone said back in June 2024 that it would no longer apply these price hikes for consumers and some small businesses.
However, the change will only affect new customers of those renewing a contract with the telecom provider after this date.
For instance, customers who sign a contract in August 2024 will have their bills adjusted in April 2025 and and then again in April 2026 by a predetermined amount.
This works out as:
- From £1 more per month for mobile services
- £3 more per month for broadband
Vodafone has previously said that price increases will not be applied to customers identified as financially vulnerable or those on social tariffs.
This includes customers on Vodafone’s social broadband tariff dubbed “Vodafone Essentials”.
Pay-as-you-go users won’t be affected by the change as they aren’t signed up to a fixed contract.
OTHER PROVIDERS ALSO HIKING PRICES
Vodafone is not the only broadband and mobile firm hiking bills for customers.
For example, BT which also owns EE and Plusnet, said that from March 2025, the price of mobile contracts will rise by £1.50 a month (SIM-only) or £4 (handset plans).
Broadband tariffs will go up by £3 a month and £2 for TV.
But, the provider has assured vulnerable customers on BT Home Essentials contracts that they will be exempt from any price rises.
For those who took out a deal before this, a 6.4% rise will apply (3.9% and December’s inflation rate, which was 2.5%).
Plusnet will also increase its broadband price by £3 per month from the end of March for contracts taken out after July 11, 2024.
For contracts started prior to this date, a 6.4% hike will apply.
Sky customers face a 6.2% increase from April 1, adding up to £38 more per year
While the new Ofcom rules require providers to specify future price rises in pounds and pence upfront, it only applies if they are linked to inflation.
Sky’s are not, so it can go ahead with a percentage increase.
For example, if you currently pay £39 per month for Sky TV, Netflix, and Full Fibre 150 broadband, your bill will increase by £2.42, bringing the total to £41.42 a month.
The same rises will apply to NOW Broadband, which is owned by Sky.
If you’re on a broadband and mobile social tariff, you won’t see an increase to your bills because Sky and Now has frozen its tariffs.
Out of contract Sky Mobile customers will see bills rise by £1.50 a month.
You can read more about individual broadband firms hiking prices by clicking the link here.
CUT YOUR TELECOM COSTS
By James Flanders, Chief Consumer Reporter
Switching contracts is one of the single best ways to save money on your mobile, broadband and TV bills.
But if you can’t switch mid-contract without facing a penalty, you’d be best to hold off until it’s up for renewal.
But don’t just switch contracts because the price is cheaper than what you’re currently paying.
Take a look at your minutes and texts, as well as your data usage, to find out which deal is best for you.
For example, if you’re a heavy internet user, it’s worth finding a deal that accommodates this so you don’t have to spend extra on bundles or add-ons each month.
In the weeks before your contract is up, use comparison sites to familiarise yourself with what deals are available.
It’s a known fact that new customers always get the best deals.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, allowances and provider.
This should make it easier to decide whether to renew your contract or move to another provider.
However, if you don’t want to switch and are happy with the service you’re getting under your current provider – haggle for a better deal.
You can still make significant savings by renewing your contract rather than rolling on to the tariff you’re given after your deal.
If you need to speak to a company on the phone, be sure to catch them at the right time.
Make some time to negotiate with your provider in the morning.
This way, you have a better chance of being the first customer through on the phone, and the rep won’t have worked tirelessly through previous calls which may have affected their stress levels.
It pays to be polite when getting through to someone on the phone, as representatives are less inclined to help rude or aggressive customers.
Knowing what other offers are on the market can help you to make a case for yourself to your provider.
If your provider won’t haggle, you can always threaten to leave.
Companies don’t want to lose customers and may come up with a last-minute offer to keep you.
It’s also worth investigating social tariffs. These deals have been created for people who are receiving certain benefits.
