Technology

Customers to pay ‘£85,500,000 a month more’ for mobile and broadband


Mobile and broadband bills are set to rise (Picture: Getty)

UK customers could be paying an extra £85.5 million a month for their mobile phones and broadband from April following today’s interest rate rise, according to consumer group Uswitch.

Most customers can expect to pay almost £30 more a year in total, a blow to consumers following high inflation last year.

Economists had expected interest rates to fall.

‘As the majority of broadband and mobile providers base their annual price rises on December’s inflation rate plus an additional 3.9%, today’s figures show that UK consumers will likely pay out an estimated total of £85.5 million more on their broadband and mobiles per month from April this year,’ said Richard Neudegg, director of regulation at Uswitch.

‘In real terms, this could cost the individual consumer around £27.19 more a year for broadband and £24.23 for mobile bills on average. 

‘This rise of up to around 7.9% follows the sky-high above-inflation price rises that consumers faced last year, which for many reached 17.3%.’

Mobile bills are expected to rise (Picture: Getty)

However, the figures remain estimates, and may not be as severe as predicted.

‘There is hope on the horizon, with Ofcom currently weighing up a new ban on inflation-linked and percentage-based price hikes,’ said Mr Neudegg. 

‘BT yesterday committed to introducing clearer pricing plans for the summer, but crucially, April’s inflation-linked rises will still go ahead as planned which is a further blow to those already financially stretched.’

Customers concerned about the price rises should check their current supplier to see if they are in or out of contract – and consider switching to a cheaper deal where possible.

‘According to Ofcom, 26% of broadband customers and 34% of mobile customers are out of contract, so now could be a good time to switch to cheaper deals and offset the April price increases,’ said Mr Neudegg. 

‘Even if you still face a price rise elsewhere, you’ll still pay less than if you do nothing.

There’s ways you can cut your mobile costs (Picture: Getty)

‘It’s also worth looking into those who don’t partake in mid-contract price rises – including mobile networks like Giffgaff, Smarty, VOXI, Lycamobile and Lebara, as well as smaller, alternative broadband providers like Hyperoptic and Zen.

“Our own data shows that broadband customers can save an average of £179 a year by switching their provider, while mobile customers at the end of a 24-month handset contract switching to a SIM-only contract (and keeping their existing handset) could save as much as £360 per year.’

The interest rate rise comes a week after Which? branded potential mid-contract price rises as ‘unconscionable’.

The consumer watchdog’s CEO Rocio Concha said: ‘Telecoms firms must do the right thing – scrap their plans for unfair price hikes this April and end unpredictable, in-contract, price increases once and for all, so everyone can understand what they will pay when they sign up to a contract for these essential services.’

Last year Ofcom warned that millions of people could be missing out on cheaper broadband with social tariffs.


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