BT and EE announce major change for mobile and broadband customers

EE is moving away from inflation-linked mid-contract price rises

BT and EE have announced major changes to mid-contract price rises which will impact both mobile and broadband customers

BT Group, who also owns Plusnet, says it will be “moving away” from inflation-linked mid-contract price rises on its monthly plans. Instead, it will be showing the annual price rises as “pounds and pence”. Under current rules, broadband and mobile companies are allowed to increase prices mid-contract in line with inflation, plus up to 3.9% extra on top of this. Most use Consumer Prices Index (CPI) inflation data for December, or Retail Prices Index (RPI) for January to decide their increases.

The group previously used the rate of inflation to dictate their mid-contract price rises on March 31 and an increase of 7.9% went ahead this year. However, going forward it will now be introducing a flat fee increase to its plans instead for new and upgrading customer contracts. New and re-contracting mobile customers will have bills increase by £1.50 a month from March 31 2025 and it will be £1.50 a month for connected devices including laptops, tablets and smart watches.

TV Customers will have their deals increase by £2 a month, and broadband customers will see their bill increased by £3. EE confirmed that out-of-bundle services will be subject to an annual percentage based increase of 5%. The changes will be introduced for Plusnet customers later this summer. There will also be no plan increases for customers on the telecom’s social tariffs, the EE Basics and BT Home Essentials.

In a statement, Marc Allera, CEO, BT Group’s Consumer division said: “The cost of living and a digitally inclusive society are now more relevant and important than ever. I’ve written before about how our annual price change is never an easy conversation to have with customers. But it is a necessary conversation to have to help us manage our own rising costs and investments we’re making into networks and customer service, while also protecting those customers in vulnerable circumstances, experiencing financial hardship or digital exclusion.”

The BT Group is the first company to make this change to its mid-contract price rises and the “pounds and pence” approach has been previously recommended by the telecoms regulator Ofcom. A consultation into the practice is set to be published by the regulator soon if the proposals are given the green light, new rules will come into force which will require all suppliers to set out their price rises in pounds and pence. The consumer group Which? has also campaigned to have inflation-linked price rises banned. Which? said the move from BT was a “positive” step but many customers had already been hit hard with this year’s hikes.

Rocio Concha, Which? Director of Policy and Advocacy, said: “It’s positive that new and re-contracting BT and EE customers will no longer have to face unpredictable inflation-linked price hikes. However, a lot of existing customers will still be reeling from the inflation-busting hikes they were hit with at the beginning of this month and will be eager to get out of their contracts as soon as possible – while Plusnet customers will still face these hikes for the time being.

“This move shows there’s nothing stopping other major broadband and mobile firms from following suit to banish unpredictable price hikes as soon as possible. Ofcom must stick to its proposed timeline for implementing a ban, and ensure there are no delays, to prevent more consumers being stung with these unpredictable increases.”