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If you have an existing broadband deal with BT or EE, there's been a major shake-up to the way that your annual price rise is calculated. BT, which owns and operates all three brands, has announced it's following government guidance to shift legacy customers onto the new pricing system for mid-contract price increases.
Last January, Ofcom banned broadband providers from including inflation-linked price increases for new contracts. That means when you sign up for a new broadband contract with any UK supplier, you'll see a fixed annual price increase stated in pounds and pence when you sign up. This is designed to make it easier to calculate how much you'll need to spend on broadband by the time the minimum term ends.
If you've signed up for a new broadband contract, or renegotiated your old one, since the ban on inflation-based price rises, your annual increase will always be stated in "pounds and pence". But if you've stuck with the same broadband plan for a few years, your increase might still be calculated based on measures of inflation in the UK.
Before introducing the new rules for telecom brands, Ofcom published the above example to demonstrate how broadband companies should display mid-contract price rises following the shake-up | OFCOM PRESS OFFICE That's about to change with the latest shake-up from BT and EE.
A statement from BT said: "We have listened and will begin moving those customers who contracted with us before we introduced our pounds and pence approach onto these terms as part of our price change this year. This change means all our customers will benefit from a transparent approach to pricing, aligned with Ofcom and Government priorities."
The change will take place from March 1, 2026 for any customer who is outside their minimum contract, which is typically around 24-months after you first signed up to your broadband deal. After the minimum term has expired, you'll be able to switch to a new supplier or deal without incurring any penalty fees.
The new system means everyone gets hit with the same flat-rate increase – whether you're on a budget plan or splashing out on a premium package
| GETTY IMAGESThe statement from BT, which owns and operates EE and Plusnet, continues: "The date when this price change will apply will be confirmed in each customer’s price change notification. To be clear, these customers moving to pounds and pence terms are outside of the minimum term of their contract with us and will not be entered into a new minimum term contract. We are also not adjusting the annual price change for customers within the minimum term of their contract, something that has been heavily scrutinised recently.
"We will be contacting customers in the coming weeks with specific information relating to their pricing."
Here's where things get a bit tricky, though.
The new system means everyone gets hit with the same flat-rate increase – whether you're on a budget plan or splashing out on a premium package.
For example, if you're paying around £22 a month for your broadband, you'll face the same £4 annual rise as someone forking out £40 to £60 monthly. That's a much bigger chunk of your bill if you're on the cheaper deal.
Despite the effort to making prices clearer, this has caused criticism from those who seeking a more budget-friendly contract.
In some cases when inflation is at a high, this "pounds and pence" method may prove to be beneficial. As an example, the UK's CPI hit a 40-year high of 11.1% — peaking as a result from post pandemic. It also surged again to 7.1% in May 2023.
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Broadband expert Alex Tofts commented, “While the ‘pounds and pence’ flat fee may sound more straightforward, it has a disproportionate impact on customers with lower monthly bills, meaning many will actually pay more under this structure than before.
“BT and EE customers won’t be entering into a new contract, so we advise out-of-contract customers to review their options and look for a cheaper alternative. While price rises may be unavoidable for many, switching can will reduce your overall monthly bill.
“We need Ofcom to revisit these regulations. Providers are taking advantage of consumers and failing to recognise the financial pressure many households are already under.
“The only real way to protect customers is to ban these absurd mid-contract price hikes altogether. Some providers already offer fixed-price contracts, so why can’t those with the biggest customer bases do the same?”
Media regulator Ofcom banned broadband providers from including inflation-linked price increases in their new contracts
| PRESS ASSOCIATIONAre you on a fixed price increase?
Under the Ofcom rules, if you signed up for a new broadband deal after January 17, 2025, you are under a fixed annual price increase, which is not part of any inflation figures.
Although several big providers began placing their new customers on this fixed increase in 2024. This means if you've started a new contract at that time, then you may also be included in the price hike. Here's when several providers began introducing this:
- Vodafone: Contract started on or after July 2, 2024
- TalkTalk: Contract started on or after August 12, 2024
- Three Broadband: Contract started on or after September 1, 2024
- Virgin Media: Contract started on or after January 9, 2025
Most of these providers have implemented fixed rate increases of £3 per month.
The following exceptions include:
- Virgin Media O2: £4 per month
- Plusnet: £4 per month
- BT: £4 per month
- EE: £4 per month
So what can you do if you're not happy about these price rises?
One option is to try negotiating with your current provider. However, this could prove to be trickier once the increases are baked into the terms and conditions.
You can also always switch providers, which has become much simpler these days. In fact, between September 2024 and September 2025, around 1.62 million fixed broadband and phone customers voted with their feet and switched.
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For broadband and landline, Ofcom has enforced One Touch Switching, which simplifies switching landline and broadband providers, allowing customers the ability to contact their new provider only.
The new provider then manages the entire process, including cancelling with the old provider and coordinating the switch, eliminating the need for customers to speak to both companies and preventing gaps in service or paying for overlapping services.
On the other hand, mobile customers can use Text-to-Switch to move to a new provider quickly.
This is a free UK process, which is also regulated by Ofcom, to change mobile providers while keeping your number, by texting PAC to 65075 to get a Porting Authorisation Code (PAC) from your old network, which you give to your new provider to handle the switch, or text STAC to 75075 to get a code to switch to a new number.
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