BILL HIKE
Major broadband provider with 46million customers to hike bills by as much as £26 in weeks
See how much more other firms are charging from April
A MAJOR mobile and broadband provider is hiking bills in April.
A number of Virgin Media's 46million customers will see prices increase by as much as £26 a year.
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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, EE, and Vodafone - with some providers hiking bills as much as 13%.
If you signed your Virgin Media contract before January 9, 2025, your price rise will be based on the Retail Price Index (RPI) inflation rate, which hit 3.6% in January.
There will also be an additional 3.9% increase set by the company.
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This means many customers will see their bills rise by 7.5% from April 1.
For those who joined after January 9, 2025, Virgin Media has introduced a fixed annual increase of £3.50 per month, this will be instead of linking hikes to inflation.
The new pricing system follows an Ofcom crackdown on mid-contract price rises that catch customers out.
Customers are being urged to check their contracts now to see if they will be hit by the April price hike.
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Changing broadband providers is now easier than ever with Ofcom's One Touch Switch which launched in September 2024.
The introduction of One Touch Switch simplifies the process of switching broadband providers, with customers only needing to contact their new provider to initiate the switch.
Easy ways to slash your mobile bill
Ernest Doku, telecoms expert at Uswitch.com, said: “If you’re one of the estimated two million Virgin Media customers who are out of contract or coming to the end of your existing deal, you don’t need to put up with price rises.
“The launch of One Touch Switch means it’s never been easier for broadband customers to vote with their feet and switch providers.
“Smaller, regional broadband providers like Hyperoptic and Trooli don’t raise their prices mid-contract and customers can save on average £181 a year by switching providers.
“You don't have to let price hikes slide - it only takes a few minutes to run a comparison and see what other options are out there.”
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.
A Virgin Media spokesperson said: “Instead of percentage-based price changes linked to inflation, contracts will specify an annual price increase in pounds and pence, giving customers greater certainty about how their bills may change over the course of their contract.
“As per the terms and conditions they agreed to when signing up, and in line with Ofcom’s new rules, some existing Virgin Media customers on older contracts will receive an inflation-linked price increase in April equivalent to RPI+3.9%.
“We know that price changes are never welcome, but with broadband usage on our network up by nearly 10% last year, we continue to provide excellent value for connectivity that our customers are relying on more than ever before. We also continue to support customers who need it most – for example through exempting social tariff and Talk Protected landline customers from any price changes.”
OTHER PROVIDERS ALSO HIKING PRICES
Virgin Media is not the only broadband company hitting customers with higher bills.
It is important to note that most providers use the December inflation figure of 2.5%.
BT
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.
Vodafone
Vodafone also uses December's CPI inflation rate, which is published in January to work out its mid-contract price hikes.
The Ofcom changes this year mean that depending on when Vodafone customers took out their contract, they will either see their prices rise by 2.5% plus 3.9%, so a total of 6.4% or a fixed rate of £3 for broadband, and between £1 and £1.80 for mobiles.
According to USwitch data the average monthly broadband price is £29.60 per month and the average mobile is £20.70.
This means that the average mobile customer will see a rise of £22.73 a year, while broadband bill payers will see a £15.90 increase - that's if they took out their contract before July 2, 2024.
For those whose contracts started after that date, their bills will increase by £36 and £21.60 respectively.
Sky
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.
Tesco Mobile
Tesco Mobile said someone on a £14.99 a month a deal would see their monthly contract price increase by 90p in April.
While, customers on a £30 a month deal will see their basic monthly price increase by £1.80.
That's for contracts taken out after December 17, 2024. On those before this date, prices will rise 6.4% (3.9% and December's inflation rate, which was 2.5%).
Three
Three has said broadband increases will be capped at £2 and mobile prices between £1 and £1.50 depending on the data allowance.
The pounds and pence rises will apply for contracts taken out after September 8, 2024.
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For those before rises are set at 6.4% (3.9% and December's inflation rate, which was 2.5%).
O2
Customers of O2 mobile will pay £1.80 more on contracts regardless of when they started their contract.
ALL O2 CUSTOMERS FACE BUMPER INCREASE
UNLIKE other mobile networks that are implementing Ofcom's new mid-contract price rise rules through a phased approach, O2 is not.
This means that all O2 mobile customers will experience an increase in their airtime plan based on the new pounds-and-pence model, regardless of when they initially signed up for their contract.
Towards the end of 2024, the mobile network reached out to customers via email to inform them of this upcoming change The email stated:
"We're writing to tell you about some changes that'll affect elements of the services you receive from us, such as out-of-bundle charges, and the way our price rises will work from 2025 onwards. Please make sure you read this information carefully and take the time to understand what it means for you.
From January 9, 2025, we'll be moving you onto the latest version of our Pay Monthly mobile agreement terms and conditions, including our recent changes to annual price rises from 2025.
With this in mind, we want to let you know that from April 2025, the cost of your airtime plan will increase by £1.80 a month."
Once again, as with other networks, the fixed pounds-and-pence increases will often lead to a significantly higher percentage rise compared to inflation-linked adjustments.
For instance, a customer on a £6.99-a-month contract taken out through a price comparison website will now face a staggering 25% increase in their bill.
By contrast, if the same customer were subject to the older inflation-based system of RPI inflation + 3.9%, their bill would have risen by just 7.4%, amounting to a modest increase of only 52p.
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