April’s inflation-linked price rises have now hit UK wallets – new research from Uswitch reveals this is costing customers an extra £182.40 for their broadband and £94.80 mobile a year on average[1]
Despite seeing similar percentage-based increases, customers have seen huge variations in pounds-and-pence price rises depending on their original package and how long they've stayed with their provider - with the impact of percentage increases compounding every year
Broadband customers who haven’t switched for 7-8 years are the worst off, paying on average £22.10 extra a month - 45% more than the national average increase of £15.20[2]
Mobile customers who haven’t switched for 8-9 years have been hit by an average £13.20 monthly bill rise - 67% more than the national average of £7.90[3]
More than one in five (23%) are unsure about how much their bills have gone up[4] while 44% don’t know when their contract ends[5]
Uswitch experts urge Brits to check how soon they can switch and reset the baseline of rises, to avoid overpaying
Mobile and broadband price hikes have hit Brits across the UK, increasing broadband bills by £15.20 and raising mobile bills by £7.90 on average in the past month alone[1], according to new research by Uswitch.com, the comparison and switching service.
This means April price rises are on average costing broadband customers an extra £182.40 a year, while mobile customers are seeing average increases of £94.80 a year[1].
Despite seeing similar percentage-based increases, customers have seen huge variations in pounds-and-pence price rises depending on their original package and how long they've stayed with their provider - with the impact of percentage increases compounding every year.
Those who stayed overpaid
The average Brit has stayed with their mobile and broadband provider for five years[6]. But those who have stayed with their provider for between seven and nine years have been hit with much bigger month-on-month price increases than those who switched providers more recently - suggesting staying loyal to a provider actually costs customers more.
Mobile customers across both pay-monthly and SIM only contracts who have stayed with their provider for eight to nine years suffered the most, paying an extra £13.20 on their mobile bill last month - a huge 67% price rise in comparison to the national average price increase of £7.90.
Those who switched their mobile provider less than one year ago were the best off, with their increases averaging out at £6.70, or 15% lower than the national average of £7.90[3].
Broadband customers who stayed with their provider for seven to eight years were the worst off, paying on average £22.10 extra this month - 45% more than the national average price rise of £15.20. Comparatively, those who switched their broadband provider less than one year ago saw their price increase average out at £11.75 – 23% lower than the national average of £15.20[2].
Bill shock around the UK
As a nation, Brits are now paying £9 billion for broadband and £5.4 billion for mobile annually[9] – showing how price increases have delivered a huge hit to Brits’ wallets.
Those in Belfast have seen the biggest increases in mobile bills, now paying £11.60 more than they did last month, or almost double (47%) over the national average £7.90 increase[10].
Londoners have been dealt a double blow - now paying £10.20 more for their mobile (29% higher than the national average increase of £7.90) and £17.70 more for broadband (16% more than the national average increase of £15.20) than they paid in March[10].
Meanwhile, Mancunians are paying £17.30, or 14%, more than the national average increase for broadband per month[10].
Despite the impact on the nation’s outgoings, well over half of Brits (57%) say they weren’t expecting the mid-contract price increases[11]. This is despite regulations from the ASA, which came into effect in December 2023[12], requiring providers to ensure information on price rises is “up front and prominent” for consumers, rather than detailed in small print. A further 46% admit they don’t read the small print on their contracts[12].
Almost half (44%) are at risk of overpaying as they don’t know when their current contract ends[5] – so aren’t aware if they can leave their current provider penalty-free. The most common reason for this is because they rely on reminders from providers to pay bills or renew contracts (28%), although 18% confess they aren’t good at keeping track of dates[14].
Changes in regulation
Ofcom has also announced a consultation that outlines plans to prohibit inflation-linked price rises linked to uncertain future figures, with findings due to be published in spring 2024[15].
While this could offer customers protection from uncertain price increases during their contract, this will only apply to customers taking new contracts once in effect - so customers still within their previous contract will not benefit from these protections.
Sabrina Hoque, telecoms expert at Uswitch.com, comments: “An expected Ofcom ban on inflation-linked price increases will be welcome news to consumers, giving them increased clarity on what they'll pay for their contract upfront. But this still doesn’t undo the impact of year on year rises for millions of Brits.
“There are a few different factors in play that contribute to these big variations, especially for those who have been with their provider a long time. A key factor is the compounding effect of annual year-on-year mid-contract price rises, as each year’s percentage increase will be based on a bigger and bigger total. After multiple years, this will really make a difference.
“Improvements in technology also mean even today’s ‘value’ packages across broadband and mobiles offer better value than they did five or ten years ago - so many customers who haven’t switched in many years could effectively upgrade their package but pay the same or less.
“Customers seeing these price rises can still take action. Most broadband and mobile contracts range from around 18 to 24 months. Your provider will let you know when your contract is about to end, so don’t be tempted to ignore these emails when they come through - it really only takes a few minutes to run a comparison and see what else is out there.
“And you don’t even have to leave your provider - your current provider could have some brilliant new offers available. Don’t fall in the trap of being out of contract, call them up and negotiate a better deal.”
Check out the latest broadband and mobile deals at Uswitch.com
ENDS
Chris Thomas
PR Contractor
v-chris.thomas@rvu.co.uk
Notes to Editor 1. Opinium surveyed a sample of 2,004 UK adult mobile or broadband bill payers from 16 April 2024 – 22 April 2024.
2. In January 2024 Uswitch calculated prices for broadband customers would rise by £27.19 per year on average, and mobile customers would see an average increase of £24.23 per year.
3. This was based on the majority of broadband and mobile providers calculating their annual price rises on December 2023’s 4% inflation rate plus an additional 3.9%.
4. Respondents were asked “Approximately, how much, if at all, has your monthly broadband bill (including any bundled packages) increased since March?” The average was £15.20. 15.20 X 12 = £182.40 annually. Respondents were asked “Approximately, how much, if at all, has your monthly mobile phone bill increased since March?” The average was £7.90. 7.90 X 12 = £94.80 annually.
5. Respondents were asked “Approximately, how much, if at all, has your monthly broadband bill (including any bundled packages) increased since March?” The average for those who had been with their mobile phone provider for 7-8 years was £22.10. The average for those who had been with their mobile phone provider for less than one year was £11.75.
6. Respondents were asked “Approximately, how much, if at all, has your monthly mobile phone bill increased since March?” The average for those who had been with their mobile phone provider for 8-9 years was £13.20. The average for those who had been with their mobile phone provider for less than one year was £6.70.
7. Respondents were asked “Approximately, how much, if at all, has your monthly broadband bill (including any bundled packages) increased since March?”. 14% of respondents selected “not sure”. Respondents were asked “Approximately, how much, if at all, has your monthly mobile phone bill increased since March?”. 9% of respondents selected “not sure”.
8. Respondents were asked “Do you know when your current contract ends?” 18% of respondents selected “no” for mobile, 26% of respondents selected “no” for broadband.
9. Respondents were asked “How long have you been with the same provider for?” The average for mobile was 5 years. The average for broadband was 5 years.
10. Respondents were asked “Approximately, how much, if at all, has your monthly mobile phone bill increased since March?” Respondents who had been with the same mobile provider for less than six months averaged out at £7.20; for six months to one year was £6.20; for 1-2 years was £7.70; for 2-3 years was £8.50; for 3-4 years was £8.40; for 4-5 years was £7.90; for 5-6 years was £7; for 6-7 years was £11.70; for 7-8 years was £12.80; for 8-9 years was £13.20
11. Respondents were asked “Approximately, how much, if at all, has your monthly broadband bill (including any bundled packages) increased since March?” Respondents who had been with the same broadband provider for less than six months averaged out at £12.40; for six months to one year was £9.20; for 1-2 years was £14.90; for 2-3 years was £15.70; for 3-4 years was £15.80; for 4-5 years was £16.50; for 5-6 years was £16.40; for 6-7 years was £17.10; for 7-8 years was £16.40; for 8-9 years was £19.90
12. Respondents were asked “Approximately, how much, if at all, has your monthly broadband bill (including any bundled packages) increased since March?” The average was £15.20. 15.20 X 12 = £182.40 annually. £182.40 X (82% of broadband bill payers - 82% of UK adult population is 49,364,000) = 9,003,993,600. Respondents were asked “Approximately, how much, if at all, has your monthly mobile phone bill increased since March?” The average was £7.90. 7.90 X 12 = £94.80 annually.£94.80 X (94% of mobile bill payers. 94% of UK adult population is 56,588,000) = 5,364,542,400
13. Respondents were asked “Approximately, how much, if at all, has your monthly broadband bill (including any bundled packages) increased since March?” The average for Belfast respondents was £11.60. The average for London respondents was £10.20.
14. Respondents were asked “Approximately, how much, if at all, has your monthly broadband bill (including any bundled packages) increased since March?” The average for London respondents was £17.70. The average for Manchester respondents was £17.30.
15. Respondents were asked “ To what extent do you agree or disagree with each of the following statements? I wouldn’t expect the price of my mobile or broadband bill to go up mid contract”. 57% of respondents selected “Strongly agree” and “Slightly agree”. Mid-contract price increases in telecoms: link
16. Respondents were asked “To what extent do you agree or disagree with each of the following statements? I never read the small print of my broadband and/or mobile contract”. 46% of respondents selected “Strongly agree” and “Slightly agree”.
17. Respondents were asked “You previously said you don't know when your mobile phone/ broadband contract ends. Which, if any, of the following are reasons for this? Please select all that apply.” 28% of respondents selected “I rely on reminders from providers to pay bills / renew contracts”. 18% of respondents selected “I’m not good at keeping track of dates”.
18. Ofcom proposes ban on inflation-linked mid-contract price rises: l
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.
