Are you a BT phone or broadband customer? Then you could see your bills rise by more than 9% later this year. But how much is the price increase? Which customers are affected? And what can you do about the price hike? Let’s take a look.
One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.
What is BT’s price increase?
Most BT customers face a price increase of 9.3%, according to BT. Essentially, this works out at around £3.50 per month for the average customer. The increase applies from 31 March 2022, so customers won’t notice a change in their phone or broadband bill until then.
BT reserves the right to raise prices once a year in line with its T&Cs. So, although there’s a price hike from March, you probably won’t face any more increases until next year.
Why is BT raising prices so much?
Well, we can blame inflation, for one thing.
Consumer Price Index (CPI) inflation now sits at 5.4%, which is an almost 30-year high. BT uses the CPI inflation rate to guide its prices, meaning the higher the rate of inflation, the higher the price rise.
However, inflation’s not the only reason we’re seeing price hikes. Here are some other key reasons:
- Customers are using more data than ever before. So, to keep up with consumer demand, BT must invest in building larger networks.
- BT prides itself on answering 100% of customer calls. This level of customer service requires investment in staff and resources.
BT intends to write to all customers setting out this year’s price hike and what’s behind the increase. So, if you’re a customer, look out for correspondence heading your way.
Is BT the only company raising prices?
Inflation affects all businesses. As it stands, you’ll see price hikes if you’re with:
However, this list isn’t exhaustive. You should check with your provider to confirm the size of any price increases on the way.
Which customers will be affected?
The price change affects most BT phone and broadband customers. However, prices won’t change for some financially vulnerable customers on the following plans:
- Home Essentials
- Home Phone Saver
If you’re in any doubt over whether the price change will affect you, just reach out to BT for advice.
Can you cancel your contract with BT?
Yes, you can – but you might pay a penalty.
Since BT’s T&Cs allow it to raise prices once a year, you agreed to any increases when you signed up. This means that although you can cancel your contract, you’ll probably pay an early exit fee if you’re still within your contract period.
However, if you’re outside your minimum contract period, it might be possible to leave BT without paying a penalty. Contact BT to find out more.
With living costs spiralling, higher phone and broadband bills will only increase the pressure on the average UK household. So, if you’re a BT customer and you’re unhappy with the price increase, you should consider switching providers. Just remember to shop around and compare broadband deals – don’t just settle for the first deal you find!
If you’re worried about how the price increase will affect your finances, check out our tips for managing living costs.