The latest inflation statistics confirm the worst for BT, EE, Plusnet, TalkTalk Vodafone customers: prices for mobile and broadband services will climb dramatically this spring.
These companies currently incorporate annual price rises each spring based on inflation figures announced in January.
The Office of National Statistics (ONS) has confirmed that the Consumer Price Index (CPI) rate of inflation is now at 5.4%. Inflation hasn’t been this high in the UK since the early 1990s.
In addition, most suppliers add a further 3.9% to that rate, so that the total price increase will be 9.3%. TalkTalk adds 3.7% to the rate, leading to a price rise of 9.1%.
Customers on older Vodafone and EE contracts may be impacted by a different measure of inflation. Those on contracts started 18 months or more months ago may typically be charged an increase based on the Retail Prices Index (RPI). This morning, the ONS confirmed RPI had reached 7.5% in the past month.
O2 and Virgin Mobile contract customers will need to wait until the third Wednesday in February to find out how much their services will increase. Prices will be increased based on February’s RPI figure, plus 3.9%. As a result, subscribers can expect a price rise in excess of 10%. Virgin Media has already announced separate price rises for its broadband and TV customers.
How the price rises compare across companies
| Company | Rate increase formula (current contracts) | Effective |
| BT, EE | CPI announced in January (5.4%) plus 3.9% | 31st March |
| O2, Virgin Mobile | RPI announced in February (to be confirmed), plus 3.9% | 1st April |
| Plusnet | CPI announced in January (5.4%) plus 3.9% | 1st March |
| TalkTalk | CPI announced in January (5.4%), plus 3.7% | 1st April |
| Three | 4.5% increase (not linked to CPI/RPI) | 1st April |
| Vodafone, Talkmobile | CPI announced in January (5.4%) plus 3.9% | 1st April |
Customers on older contracts or social tariffs (where available) with the above companies will be on different terms.
Consumers can avoid the worst increases by shopping around when their contract is over to find a new mobile or broadband deal or haggling with retentions.
For TV services, most of the UK’s most popular TV channels can be accessed without an additional subscription to Sky, Virgin, TalkTalk or BT. Apps such as Now (TV) and Discovery+ allow viewers to access specific channels and on-demand libraries on a standalone basis.