Millions of mobile and broadband customers face £2.5 billion price hikes in 2023

More than 13 million mobile and broadband customers may see bills rise by £100 next year due to inflation-busting price hikes, Citizens Advice is warning.

The charity has found nine out of 10 broadband customers and seven out of 10 mobile customers are with providers who can hike prices halfway through the contract. While products like insurance or fixed-term mortgages remain the same price throughout a contract, mobile and broadband costs can fluctuate during the contract.

Many providers are currently set to increase prices beyond inflation, in the worst cases up to 3.9% above that.

With the recent Bank of England estimates putting inflation at 12.6% in January 2023, mid-contract price hikes will be much higher this year than in previous years, at a time when people are least able to manage them.

The charity found that one in three mobile and broadband customers facing price hikes have already cut back on everyday essentials such as food, energy and clothing. It is now calling for providers to axe these price rises, which it predicts could cost consumers £2.5 billion extra in 2023.

With mobile and broadband internet being an essential utility, relied upon by many for employment, managing benefits and staying in touch with loved ones, Citizens Advice is warning that access must remain affordable. The charity found that over a third of broadband and mobile customers facing price rises are already worried about being able to afford these services at their current costs.

The tables below show how much prices could increase if inflation hits 12.6% in January as forecast by the Bank of England.

BROADBAND

MOBILE

Worryingly for those trying to budget right now, the charity found that across both markets, one in four customers didn’t know their prices could go up mid-contract, and a further two in five were aware they could rise, but didn’t know by how much.

‘It may only seem like a few pounds but everything is going up – I’ll have to start cutting back’

Richard, 42, lives in Torquay, said of his mobile costs: “Over the years I have had many mid-contract price rises. And it may seem like only a few pounds, but it quickly adds up.

“I’ve just found out my rent is about to go up and all my other bills are going up. I’m going to have to seriously start cutting back on some things.”

Citizens Advice heard from others on rising prices mid-contract, including from:

• One shopper who took out an internet contract for £48 per month, but the provider suddenly started charging £54 and then £59 without telling the customer. They are stuck in this contract for 18 months.
• One customer who has seen their monthly mobile contract go up from £64 to £70 a month, despite being under the impression that price rises would be closer to 50p/£1.
• One person who changed contracts after telling their internet provider they wanted cheaper broadband and agreed to a contract for £34 for two years – but the provider has already put up costs.

Dame Clare Moriarty, Chief Executive of Citizens Advice, said:

“Every day our advisers hear from people barely making ends meet as they try to cope with inflation and soaring household bills.

“As we all pull together in the midst of a cost-of-living crisis, mobile and broadband providers should be finding every way possible to help people.

“We want to see them cancel mid-contract price rises this year. Ofcom and the government should then look to protect consumers from future ones.”