Price rises for broadband and mobile customers are set to hit 18 million UK wallets from March 31st, according to new analysis by Uswitch. But by acting now, millions of consumers can beat these price rises by switching suppliers before the hikes take effect.

The spring price increases are expected to add an average of £39.60 to annual broadband bills, and an average of £27.60 to the yearly bills of mobile customers. However, for those on newer contracts, these rises could be as high as £4 a month for broadband and £2.50 a month for mobile services – adding an extra £48 and £30 per year respectively.

Who can beat the price rises?

Eight million broadband and 14 million mobile customers are currently out of contract or will be before April 1st. These customers can beat the price rises as they are free to switch providers penalty-free.

This year, it’s not just those who are out of contract who can save. Customers still locked into their contracts will likely need to pay a penalty for leaving early, but some broadband providers are offering early-switching credit for those still in contract. So, for the 17 per cent of consumers who say hefty exit fees are preventing them from switching, these offers could be a welcome incentive.

How to beat the price rises?

There are simple ways to beat the price rises, advises Uswitch. Firstly, start by checking the contract, as anyone outside their minimum term is free to change provider penalty free.

Switching to a provider who has committed to freezing prices until 2027 means consumers can avoid rises for another year. For broadband, Virgin Media, Community Fibre, EE, Plusnet, BT, Vodafone and Hyperoptic have all recently announced price freezes for new customers. Mobile customers can take advantage of price freezes with Three, Vodafone, iD Mobile and Tesco Mobile.

For those still in contract, Virgin Media, Three and EE are all currently offering early-switching credit for new customers which means they will reimburse any early exit fees from your previous provider as bill credit. The amount can differ per provider, with Virgin Media currently offering up to £250 and EE offering up to £300.

A quarter (26 per cent) of Brits wrongly believe price rises are the same for everyone, which isn’t the case, as they apply differently depending on the provider, when the service was joined, and for some, what kind of package they are on.

Another common misconception, shared by a quarter (25 per cent) of consumers, is that they are automatically free to leave theuir contract if their prices rise. This is only the case if they weren’t mentioned in the contract, then customers will have a 30-day window to leave once notified. Sky Broadband customers are currently the only customers where this applies.

The simplest way to sidestep the confusion and avoid price rises all together is to swap to a provider with a price freeze promise for the length of the contract. Broadband providers who offer this include Trooli and YouFibre, and mobile providers who have pledged to not raise prices include VOXI, Lebara and giffgaff.

Ernest Doku, telecoms expert at Uswitch, commented: “With millions of mobile and broadband customers facing price rises this spring, it’s crucial to check your contract status as you could be able to beat the hikes if you act now. A number of providers, including Hyperoptic, EE and Virgin Media for broadband and Three and Vodafone for mobiles are offering price freezes for 2027. This means if you switch now, you won’t be subject to a price rise this April. Even if you’re in contract and you’re unhappy with your current service, it’s always worth checking whether you can switch early, as some providers offer early-switching credit. Switching can save broadband customers an average of £329, and mobile customers can save an average of £304 switching from a handset contract to a SIM-only mobile contract. In broadband especially, the deals we’re seeing at the moment are the strongest they’ve been in years, as a direct result of fierce competition between providers.”

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Categories: Articles, Broadband, ISP, Markets, MNO, Mobile, Research

Tags: broadband, sky, uswitch, virgin