- Millions[1] of mobile users could face a bill increase four times higher than the current rate of inflation as a result of providers’ new price rise figures[2]
- Many broadband customers on newer plans face a flat £4 monthly price rise, representing a 11.1%[3] jump for the average user - nearly triple the rate of inflation[2]
- The hikes mark one year since Ofcom’s "pounds and pence" rules required providers to state annual increases in clear monetary terms rather than use inflation-linked rises that could not be known in advance
- Uswitch warns that mid-contract increases will compound over time, so it’s vital to switch to the best deal once their contract ends to avoid overpaying
Millions[1] of UK households are facing telecoms price rises up to four times the rate of inflation this April[2], as the industry marks one year since the launch of Ofcom’s "pounds and pence" pricing rules.
New analysis from Uswitch.com, the comparison and switching service, reveals that while inflation currently sits at 3.2%, some mobile and broadband customers could face hikes of up to 13.4% as a result of providers’ new price rise figures[2].
January 17 marks the first major anniversary of a shift in how bills are increased for customers on newer contracts. Previously, providers linked hikes to inflation, which could not be known in advance, with a further percentage added on top, which will still apply for many customers on older contracts. However, under Ofcom rules introduced a year ago, they must now state the exact pounds and pence increase a customer will face annually at the point of signing a contract, so the customer knows exactly what they are agreeing to in advance.
While this change has improved transparency, in many cases the rises are now significantly higher proportionally. The steepest increases proportionally are appearing across mobile phone bills, where consumers currently pay an average of £18.60 per month[4]. From April, these customers could face a double-digit percentage rise of 13.4%[4] as new fixed monthly increases push bills up by £2.50 for many networks.
While many providers have set out these increases in advance, networks such as O2 have even put in place rises above the levels originally outlined in customer contracts.
It’s a similar story for broadband customers, where a number of the UK’s largest providers now apply a fixed £4[2] monthly price increase for new customers. When applied to the current average broadband bill of £35.90, this results in an 11.1%[3] rise - more than three times the current 3.2% rate of inflation[2].
A quarter of broadband customers (24%) say a £4 monthly increase would be unmanageable[5], despite this being the latest figure introduced by the UK’s largest providers for its newest customers.
On average, consumers say they would only tolerate a £2.70 broadband increase before considering switching[6], so many providers may face losing customers who are out of contract come April.
Mobile users face a similar squeeze. One in five (19%) bill payers would struggle with a £2.50 monthly rise in their bill[7], whilst 17% say they would not accept any rise at all[8].
A third of Brits (32%) say they now spend more mental energy worrying about utility bills than they did two years ago.[9] The growing strain is reflected in attitudes towards price rises, with one in five (19%) saying they tolerate increases but are actively looking for a reason to leave[10].
A significant divide is emerging, with a clear split between the biggest brands and smaller challengers. While major broadband and mobile providers - including BT, EE, Virgin Media, and Vodafone - are standardising price hikes that can add up to £48 and £30 respectively a year[11] to a bill, a growing number of 'price-freeze' providers, such as YouFibre in broadband and Lebara in mobiles, are bucking the trend.
Broadband: Latest price increase amounts for new/re-contracting customers
| Provider | Fixed Monthly Increase | For contracts taken out from | Annual Increase | % on average bill |
|---|---|---|---|---|
| BT / EE | £4.00 | 31.07.2025 | £48.00 | 11.14% |
| Plusnet | £4.00 | 05.08.2025 | £48.00 | 11.14% |
| Virgin Media | £4.00 | 2.10.2025 | £48.00 | 11.14% |
| TalkTalk | £4.00 | 16.11.2025 | £48.00 | 11.14% |
| Hyperoptic | £4.00 | 6.01.2026 | £48.00 | 11.14% |
| Three / Vodafone | £3.50 | 09.11.2025 for Three and 12.11.2025 for Vodafone | £42.00 | 9.75% |
| Cuckoo | £3.00 | 28.01.2025 | £36.00 | 8.36% |
| 4th Utility | £3.00 | 01.05.2024 | £36.00 | 8.36% |
| Direct Save Telecom | £3.00 | 08.03.2025 | £36.00 | 8.36% |
| Pop Telecom | £3.00 | 01.05.2025 | £36.00 | 8.36% |
| Onestream | £2.75 | 01.01.2025 | £33.00 | 7.66% |
| Community Fibre | £2.00 | 05.08.2024 | £24.00 | 5.57% |
| Gigaclear | £2.00 - £3.00 | All customers | Variable | 5.57-8.36% |
| KCOM | £1.00 - £3.00 | All customers | Variable | 2.79-8.36% |
| Trooli / Zen / YouFibre / Lit Fibre/Sky/Hull Fibre/Squirrel/Belfibre/Brawband/Brilland/Cuckoo/Direct Save Telecom/ Fibrus/ G Network/ Hey! Broadband/ Infinics/ Pop Telecom/ Fibrus/ Quickline/ Truespeed/Utility Warehouse/Voneus/YouFibre/Zzoomm | £0.00 - fixed price promise | All customers | £0.00 | 0.0% |
Source: Uswitch.com analysis of confirmed broadband provider announcements relating to fixed ‘pounds and pence’ price increases due to take effect from spring 2026, applied to new customers, re-contracting customers, and customers who are out of contract on providers’ latest pricing models[11].
Mobile: Latest price increase amounts for new/re-contracting customers
| Provider | Plan Type | Fixed Monthly Increase | For contracts taken out from | % on average bill | Annual Increase |
|---|---|---|---|---|---|
| EE | Handset plans | £4.00 | 10.04.2024 | 8% *based on the starting price of £54 per month, as opposed to the average bill | £48.00 |
| O2 | Pay Monthly plans | £2.50 | All customers | 13.44% | £30.00 |
| Vodafone | Pay Monthly plans | £1.50 - £2.50 | 12.11.2025 | 8.06-13.44% | £30.00 |
| EE | SIM-only / Smartwatch/Pay monthly plans | £2.50 | 31.07.2025 | 13.44% | £30.00 |
| Three | High Data (100GB+) | £2.30 | 09.11.2025 | 12.37% | £27.60 |
| Three | Mid Data (5GB-99GB) | £1.90 | 09.11.2025 | 10.22% | £22.80 |
| Three | Low Data (4GB or less) | £1.80 | 09.11.2025 | 9.68% | £21.60 |
| Sky Mobile | Pay Monthly plans | £1.50 | The majority of customers | 8.06% | £18.00 |
| iD Mobile | Handset only | £1.50 | 17.01.2025 | 8.06% | £18.00 |
| Tesco Mobile - for non-Clubcard Price deal customers only | Depends on contract cost | 6% | 7.12.2024 | 6% | £13.40 (based on the average monthly bill) |
| Tesco - Clubcard Price deal customers/VOXI / Lebara / SMARTY / Spusu / giffgaff | Various | £0.00 - fixed price promise | All customers | 0% | £0.00 |
Source: Uswitch.com analysis of confirmed mobile provider announcements relating to fixed ‘pounds and pence’ price increases due to take effect from spring 2026 (February for Sky Mobile customers), applied to new customers, re-contracting customers, and customers who are out of contract on providers’ latest pricing models[11].
Ernest Doku, telecoms expert at Uswitch.com, comments: “Flat-rate ‘pounds and pence’ increases appear to be being used as a smokescreen for price hikes that, in many cases, are much higher as a proportion of the bill than the current rate of inflation.
“For customers on newer contracts, these fixed jumps will have been clear from the start of the contract. But the scale of the increases could catch people off guard as they compound every year.
“The most important thing consumers can do is keep track of their contract end date. Once you are out of contract, you can switch and reset the clock on your bills. By moving to a new deal, you can avoid these increases compounding on top of high out-of-contract rates, which can save broadband customers an average of £203 a year.
“There are still providers, such as Lebara for mobiles and YouFibre for broadband, that choose not to apply mid-contract rises at all. With these hikes hitting in spring, the time to act is now.”
Visit Uswitch.com to check how upcoming price rises could affect you and compare alternative broadband and mobile deals.
ENDS
Notes to editors
Opinium surveyed a nationally representative sample of 2,000 UK adults between 23rd - 29th December 2025. Results are weighted to be nationally representative.
- An estimated 1,057,676 customers on broadband plans that have a £4 price rise this March/April (EE, BT, Plusnet and Virgin Media). There is an estimated 9,067,385 customers on mobile plans that have a £2.50 price rise this March/April (O2 and EE). This is based on survey questions to 20,000 mobile and broadband decision makers weighted to be nationally representative. Questions asked were: When did you last switch to a new mobile phone contract (or renew/re-contract with your current provider)?, and When did you last switch to a new broadband contract (or renew/re-contract with your current provider)?.
- Office for National Statistics: UK inflation, measured by the Consumer Prices Index (CPI), stood at 3.2% in the 12 months to November 2025. Participants who pay for broadband and mobile services were surveyed on the average bills. A £4 monthly broadband increase applied to the average bill of £35.90 equates to an 11.1% rise, while a £2.50 mobile increase applied to the average bill of £18.60 equates to a 13.4% rise. These increases were then compared with the Consumer Prices Index (CPI) inflation rate of 3.2%. An 11.1% increase is around 3.5 times inflation, while a 13.4% increase is just over four times inflation, meaning telecoms price rises are running at around three times the rate of inflation overall, depending on the service.
- Participants were asked: “How much is your monthly bill for your home broadband?” Responses show the average monthly broadband bill is £35.90, representing a 11.1% increase based on the £4 price rise.
- Participants were asked: “How much do you currently pay for your primary monthly mobile plan?” Responses show the average monthly mobile bill is £18.60 (NB: this is an average of all mobile contracts, including SIM only, handset, and split), with a 13.4% price increase based on the £2.50 price rise.
- Participants were asked: “When thinking about your household budget, how manageable do you find a fixed monthly price increase for your broadband or mobile service? 24% said a £4 monthly broadband increase would be unmanageable.
- Participants were asked: “What is the maximum monthly price increase you would accept on your broadband package before you took the time to cancel or switch your provider?” Responses indicate an average tolerated increase of £2.70 per month.
- Participants were asked: “When thinking about your household budget, how manageable do you find a fixed £2.50 per month increase (£30 per year) for your mobile plan?” 19% said they would struggle.
- Participants were asked: “What is the maximum monthly price increase you would accept on your mobile package before you took the time to cancel or switch your provider?” Responses show customers would accept an average increase of £2.30 per month, while 17% said they would not accept any increase at all.
- Participants were asked: “How much ‘mental energy’ do you spend worrying about utility price rises compared to two years ago?” 32% said they now spend more time worrying about utility bills.
- Participants were asked: “Which of the following best describes your attitude toward your broadband provider’s annual price hikes?” 19% said they tolerate increases but are actively looking for a reason to leave, while 17% said they feel exploited.
- Uswitch.com analysis of confirmed broadband and mobile provider announcements relating to fixed ‘pounds and pence’ price increases due to take effect from April 2026, applied to new customers, re-contracting customers, and customers who are out of contract on providers’ latest pricing models. Some broadband providers have announced fixed annual price increases of up to £48, while others have committed to freezing prices for the duration of the contract.
For more information
Harriet Atkinson | Telecoms PR Manager
harriet.atkinson@rvu.co.uk
Twitter: @UswitchPR
