BT and EE announces mid-contract bill hikes for customers from tomorrow – how you can shave your bill today
New customers who sign up to a broadband package on or after Thursday, July 31 will be subject to a £4 price rise midway through their contract.
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This is up from the previous £3 mid-contract price increase.
Customers who sign up from July 31 will be subject to the price hike on March 31, 2026, and again on March 31, 2027.
Meanwhile, Plusnet will also hike its mid-contract price rise to £4 from August 5.
Mobile plans will also be subject to mid-contract price rises for BT, EE and Plusnet customers.
Anyone on Sim only and Flex Pay plans will see their contracts rise by £2.50 in April, while bundled handset and airtime plan customers will face a £4 rise.
New mid-contract price rises: BT, EE and Plusnet
It comes after Telecoms firms were ordered by Ofcom to display mid-contract price increases in the form of pounds and pence from January 17.
Prices are usually hiked in April in line with either the Consumer Price Index (CPI) or Retail Price Index (RPI) measures of inflation plus up to 3.9%.
Under the new rules, customers must be shown by their broadband or mobile provider exactly how much their bill is going up by in April.
This is so customers know exactly how much their contract will rise before taking it out rather than it being linked to future inflation, which can go up or down.
A spokesperson for BT, which owns both Plusnet and EE, said: 'We are very supportive of Ofcom's requirement to show upfront pounds and pence charges.
"EE was the first provider to introduce this pricing model, offering EE customers a predictable long-term view of their contract terms. Our pricing approach is designed to be clear for our customers."
They added: "We continue to invest in our business, building on 11 years as the best network to better serve our customers with a reliable and quality connection as we roll out the fastest speed technology to 30million homes by the end of the decade.
"We're focused on providing value and customer satisfaction, making new technologies available to our customers such as 5G standalone and WiFi 7."
It comes just days after it was confirmed that BT had paid out a huge £18million to customers after a ruling by Ofcom.
The telecoms provider was forced to give payouts to more than one million customers.
The watchdog previously found they had made sales to more than a million customers without providing them with contract summary and information documents.
It meant some customers were unaware they would have exit fees if they tried to leave the provider.
Ofcom's consumer protection rules, which came into effect in 2022, state that customers should have a short summary of key terms of the contract.
These include the price and length of the contract, the speed of the service and any early exit fees.
How to get a better deal
Shopping around for a better deal can often be the best way to cut down on mobile and broadband costs.
But switching to a new service isn't necessarily needed, if you'd rather stay with your own provider.
Haggling for a new offer is the best starting point for cutting down your broadband bills.
The first thing to do is to find out what the cheapest deal on the market is, which you can use as a bargaining tool to get a better offer.
Visit comparison sites like Uswitch.com or Moneysavingexpert.com to do this, and find the best deals on the market.
You can then call up your telecom company and tell them you're unhappy with the price, or you could go into a branch in-person to haggle for a better mobile contract.
You can tell them you've found a better price somewhere else or that, as a loyal customer, you want to know if you can get a better deal.
Cut your telecom costs
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.
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