Martin Lewis warns of broadband price hikes from BT, Virgin and more – check for better deals now

Here’s how to find the best deals and save money before the increase comes into effect

The price hike will come into effect this spring (Getty/The Independent)

As consumers continue to brave the cost-of-living crisis, MoneySavingExpert Martin Lewis has warned people that broadband providers are about to start implementing mid-contract price hikes, which will see customers pay up to 14.4 per cent more on their broadband every year.

In a recent episode of his BBC podcast, Lewis warned that BT, EE, Plusnet, Sky, TalkTalk and Three had all announced increases in their prices, set to come into effect this April. Vodafone and Virgin Media announced price hikes soon after the broadcast.

“BT, EE and Plusnet will have a typical rise of 14.4 per cent in April on broadband and mobile,” he said. Sky broadband customers will see a 9 per cent increase and TalkTalk customers on a non-fixed broadband tariff will see a 14.2 per cent increase. “Three broadband is going up by 4.5 per cent and mobile is going up 14.4 per cent,” he added.

Virgin Media has since announced it will be hiking its prices by an average of 13.8 per cent, while Vodafone’s prices will be increasing by an average of 14.4 per cent.

The prices go up every year, in-line with the consumer price index (CPI) rate of inflation. On 18 January, the Office for National Statistics revealed that the CPI had dropped to 10.5 per cent in December, down from 10.7 per cent in November, but broadband providers typically add an extra few percentage points to account for increased business costs, which are usually as high as 4 per cent.

Almost every broadband provider hikes their prices mid-contract in April, with independent companies such as Hyperoptic, Gigaclear, Cuckoo broadband and LitFibre being the exceptions. Recent research from consumer rights group Which?  suggests that if a household’s broadband bills go up by 14 per cent this year, customers will be forced to pay £87 more annually in a best-case scenario and as much as £113 if they are with BT.

Lewis advised viewers that they should think about switching providers or haggling for a better deal now, especially if they’re out of contract. “If you can get a cheaper price on a price comparison website, see if you can use that as a benchmark,” he said.

While you won’t be able to avoid the mid-contract price hikes, finding a better deal now will mean paying less in April. “£20 is less than 14 per cent of £40, so cut what you are paying, the rise in pound terms will be smaller,” Lewis explained.

Read More: Compare cheap broadband deals with Independent compare

A recent 2022 USwitch survey estimated that 7 million people are currently out of contract on their broadband, which means they could be paying less if they shopped around. Lewis recommended customers check online for the best broadband deals in their area and how those deals compare with their current deal, as well as look at what prices new customers could be paying if they sign up.

“As a loyal customer, the first thing I would do is, I’d get on the phone and I’d say: ‘I’ve seen what you’re charging new customers. I’m not willing to pay that amount, can you offer me a better deal?’” Lewis said during his show in January. “If they say no, you say ‘I want to go through to customer disconnections’ – this is where they can do the big deals.”

If your broadband provider still can’t match deals from competitors or offer the same price it’s offering new customers, it’s probably time to start looking elsewhere.

Consider social tariff and essential broadband packages

For those on a low income or certain benefits, it’s worth looking at social tariff broadband packages, which are cheaper deals offered by all the major broadband companies.

Vodafone launched the most competitive social tariff package last year, offering speeds of up to 38Mbps, for £12 per month. If you receive one of the below state benefits, chances are, you’re eligible for social tariff broadband:

• Disability Living Allowance (DLA)
• Employment and Support Allowance (ESA)
• Jobseeker’s Allowance (JSA)
• Personal Independence Payment (PIP)
• Universal Credit

Bundle broadband with your mobile network provider

Like Vodafone, a large number of mobile phone carriers offer broadband as well as cellular contracts, including EE, O2, Three and Virgin Mobile. It’s often cheaper to bundle broadband and a SIM contract together, so it’s worth looking into. Other providers, such as BT and Sky also offer TV, mobile and home broadband bundles at a discounted price.

What are the best broadband deals in the UK?

If you want to switch provider completely, we’ve got a broadband price comparison tool, which will help you find the cheapest prices in your area. But we’ve highlighted a few of the best broadband deals right now. You’ll find cheaper deals than the ones below, but we’ve balanced download speeds with price here. For the cheapest broadband deals, check out our broadband price comparison tool.

Virgin Media M125 fibre broadband: Was £44 per month, now £26.50 per month, Virginmedia.com

(Virgin Media)

With this deal, you get Virgin Media’s M125 fibre broadband for £26.50 per month. It comes with average download speeds of 132Mbps and average upload speeds of 20Mbps, ideal for households that like to stream, game and download content fast. It’s an 18-month contract. Once your contract is up, you’ll have to pay the original price of £44 per month, so make sure to start looking around again in a year and a half.

Virgin Media also has a deal where you only have to pay £15 for the first six months, then £30 for the rest of your contract, but it’s a longer, 24-month contract.

Buy now

Three 5G and 4G home broadband: £20 per month, free for the first three months, Three.co.uk

(Three)

Three has a deal on its 5G and 4G home broadband packages. Right now, the mobile network provider is offering up three months for free, then £20 a month thereafter. It’s a 24-month contract, and there’s a 30-day money-back guarantee if you’re not satisfied with the 4G or 5G speeds. Because it’s a 4G/5G router, you don’t need a landline. 

Buy now

Sky superfast 35: £25 per month, Sky.com

(Sky)

Sky is offering up its superfast 35 package for £25 per month. You get average download speeds of 36Mbps or your money back. It’s an 18-month contract. It’s not the fastest package, but it’s still pretty reasonable, considering it takes just 5 minutes and 26 seconds to download a film in HD at these speeds.

Buy now

Tariff comparison

For the latest offers on mobile phone contracts, try the links below:

• Mobile phone deals
• Best iPhone deals
• Best SIM-only deals

We’ve rounded up the best broadband deals available in the UK now