As Broadband Prices Increase Across the Board, Is it Time to Switch Provider?

As broadband prices increase, now is the best time to consider alternative options

As you might be aware, most broadband providers hike their prices every April. It’s likely that will have already received an email about it recently, with details on how much extra you’ll be paying. So you may know that this year’s broadband price increase could be a substantial one.

Why are prices going up?

Annual broadband price rises are nothing new. Every year, providers will raise prices in line with inflation to keep up with rising business costs and maintain profitability. But as the inflation rate recovers from a 30-year high in 2023, broadband price rises continue to be higher than normal, with this year’s hike no exception.

I’m in a contract – will my broadband price rise?

Most broadband providers have these hikes built onto their terms and conditions, so the likelihood is that if you’re with one of the bigger providers, your monthly broadband cost will go up from April.

The increases are usually tied to the Consumer Price Index (CPI) or Retail Price Index (RPI) inflation rates, which are published at the beginning of each year. It’s worth noting that providers usually add their own percentage (around 3%) to cover rising costs, meaning an overall increase of about 4-5% annually. However, the CPI figure in Jan 2024 was at 4%, so with the additional percentage price on top of that, many providers are set to increase prices by up to 7.9%. Virgin Media, which chooses to use the RPI as the base level, will go even further, increasing prices by 8.8% in April.

How much will my broadband price increase by?

Search your inbox. Check your mail. If your price is going up, your provider should have informed you in the last few months. Major providers like BT, Sky and Virgin Media have all confirmed their spring price rises.

Can I cancel my contract or switch providers?

You can switch provider or cancel your contract at any time, but there’s usually a fee involved – and usually quite a big one. However, some providers will allow you to cancel your contract within 30 days of being notified of the price increase. To see if you could cancel your contract for free or, find out what the buy-out clause is, check your contract Ts&Cs or contact your broadband service provider.

Simply cancelling your contract isn’t the only way to avoid paying the price increase. Some smaller providers can buy you out of your contract, meaning you can switch to a better deal mid-contract and it won’t cost you a penny. For instance, at Hey!Broadband, there are certain cases where we will buy customers out of their existing contracts depending on how much of it is left. If you’re interested in switching to Hey!Broadband, give us a call on 020 4525 7905.

Out of contract? You’re free to switch

Of course, if you’re not tied into a contract, you can cancel your broadband services without penalties or fees. If you’re out of contract, there’s every chance you’ve been rolled onto a more expensive tariff, so it’s certainly worth looking for a better deal irrespective of the imminent April price hikes – switching could save you £100s over the course of a broadband contract.

Do all broadband providers hike their prices?

Thankfully, not all providers are set on bumping their prices at the earliest possible opportunity. Smaller broadband providers like Hey!Broadband offer a ‘no mid-contract price rise guarantee’. And as households continue to feel the effects of inflation across their utility bills, this level of certainty can be a welcome reprieve.

Are there any exemptions?

Some customers won’t be affected by the price rises. For example, if you’re with a smaller provider like Hey!Broadband, there will be no price hike. There will also be no price rise for those on social tariffs (eligible for government financial support like Universal Credit). At Hey!Broadband, we make a promise to keep our prices consistent throughout the contract so whether you have one of our home broadband packages or our social tariff, there are no price hikes!

In conclusion

Mid-contract price rises are, unfortunately, par for the course with the major broadband providers. And set against the backdrop of economic uncertainty, they come at a difficult time for many. But there are ways to negate the impact of a broadband price hike.

When you’re out of contract, always shop around for better deals, making sure you don’t roll onto a more expensive tariff. Often, big providers can seduce you with new-customer offers and glitzy advertising campaigns, but the smaller providers are often better value for money in the long term.

Hey!Broadband strives to offer fantastic gigafast full fibre broadband for a fair price so if you’re interested in making the switch, be sure to check our availability in your area or give us a call on 0330 822 28 78.