Major mobile and broadband firm reveals exact amount your bills will rise by next April – will you be worse off?
A MAJOR mobile and broadband network has revealed the exact amount your bills will rise by next April.
Millions of Vodafone customers will no longer have inflation-linked price rises applied to their pay monthly and sim-only contracts.
The mobile network, which caters to 18.5million customers, used to increase prices by the consumer price index (CPI) of inflation in December + 3.9%.
That meant all broadband, sim-only and pay monthly mobile phone customers saw their prices rise by 7.9% in April 2024.
However, customers who have taken out a new broadband or mobile phone contract since July 2 will see their prices rise next April by a set number of pounds and pence.
If you haven’t renewed after this date, you’ll still see your prices rise to inflation.
This change comes in response to an Ofcom consultation that emphasised the need for transparency in mid-contract price increases.
From January 17, 2025, phone, broadband, and pay-TV providers will be prohibited from applying inflation-linked price rises.
However, several telecom firms, including Vodafone, BT, EE, and Plusnet, have already announced these changes ahead of time.
Vodafone customers who sign a contract or upgrade this month will have their bills adjusted by a predetermined amount in April 2025 and again in April 2026.
However, this predetermined amount will depend on the type of service you have as well as the specific name of your mobile phone contract.
All affected broadband customers will see their bills rise by £3 a month next April.
However, depending on their contract, mobile phone customers could see their prices rise by either £1 a month or £1.80 a month.
A Vodafone spokesperson said: “Ofcom’s new rules on mid-contract price rises is about giving customers the certainty and clarity they need to make the right choices for them in a market which is competitive and includes a variety of different operators with different price points.
“Since July 2, 2024, and in line with Ofcom’s new rules, we have moved away from inflation-linked price rises for our consumer customers and some small business customers.
“Before a customer takes out a new contract or re-contracts with us – from July 2, 2024, they will be told exactly what their contract will cost in pounds and pence, and when that price rise will occur.”
These price increases will not be applied to customers identified as financially vulnerable or those on social tariffs.
This includes customers on Vodafone’s social broadband tariff dubbed “Vodafone Essentials”.
Pay-as-you-go users won’t be affected by the change as they aren’t signed up to a fixed contract.
INFLATION-LINKED PRICE HIKES
TELECOM firms have come under fire for above-inflation mid-contract price rises on fixed contracts for the past four years.
Due to clauses in contracts, providers can impose annual rises, usually in April.
The hikes are tied to either the Consumer Price Index or Retail Price Index inflation rate, which has soared during the cost-of-living crisis.
It means millions of customers faced hikes of up to 8.8% this year — adding as much as £50 to bills.
Firms argue that they need to be able to increase prices to keep up with rising costs.
But consumer experts argue that a fixed contract should live up to its name — and stay fixed.
VODAFONE’S PRICE RISES DIFFER
From next April, customers with a Vodafone Basics sim-only tariff will see their prices rise by £1 a month.
The mobile network offers only a small number of Basic plans priced between £7 and £10 a month.
For example, if you sign up for £7 a month Basics plan, the price of your contract will rise to £8 a month from next spring.
Unlike Vodafone’s pay monthly and other sim-only plans, these contracts come with the bare minimum in terms of service.
Customers can get unlimited UK texts and calls and choose from a 6GB, 30GB or 50GB data package.
These customers do not get access to the superfast 5G network, and they are charged £2.42 to use their allowance in Europe.
If you wish to use your phone further abroad, you’ll have to pay up to £7.39 a day.
Customers with any other pay monthly or sim-only plan will instead see their prices rise by £1.80 a month from April 2025.
Vodafone’s standard pay monthly sim-only contracts start at just £15 a month.
So, if you sign up for the cheapest one available, your price will rise to £16.80 next spring.
Pay monthly tariffs differ depending on the type of handset you buy and the minutes, texts and data you need.
However, most standard mobile plans come with access to Vodafone’s 5G network and a host of other freebies including free roaming in Europe.
Some packages also offer customers the choice between 24 months of free YouTube Premium or Amazon Prime membership.
While the exact amount that your contract price will rise by under the new rules means these will be fixed across all customers, if you’re out of contract you’ll likely save cash by looking for a better deal.
CUT YOUR TELECOM COSTS NOW
SWITCHING contracts is one of the single best ways to save money on your mobile, broadband and TV bills.
But if you can’t switch mid-contract without facing a penalty, you’d be best to hold off until it’s up for renewal.
But don’t just switch contracts because the price is cheaper than what you’re currently paying.
Take a look at your minutes and texts, as well as your data usage, to find out which deal is best for you.
For example, if you’re a heavy internet user, it’s worth finding a deal that accommodates this so you don’t have to spend extra on bundles or add-ons each month.
In the weeks before your contract is up, use comparison sites to familiarise yourself with what deals are available.
It’s a known fact that new customers always get the best deals.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, allowances and provider.
This should make it easier to decide whether to renew your contract or move to another provider.
However, if you don’t want to switch and are happy with the service you’re getting under your current provider – haggle for a better deal.
You can still make significant savings by renewing your contract rather than rolling on to the tariff you’re given after your deal.
If you need to speak to a company on the phone, be sure to catch them at the right time.
Make some time to negotiate with your provider in the morning.
This way, you have a better chance of being the first customer through on the phone, and the rep won’t have worked tirelessly through previous calls which may have affected their stress levels.
It pays to be polite when getting through to someone on the phone, as representatives are less inclined to help rude or aggressive customers.
Knowing what other offers are on the market can help you to make a case for yourself to your provider.
If your provider won’t haggle, you can always threaten to leave.
Companies don’t want to lose customers and may come up with a last-minute offer to keep you.
It’s also worth investigating social tariffs. These deals have been created for people who are receiving certain benefits.
OTHER FIRMS HIKES
BT, which also owns EE and Plusnet, confirmed that it would no longer raise prices mid-contract based on a percentage linked to inflation.
All BT and EE customers who took out a new contract after April 10, 2024, are affected.
The price of mobile contracts will rise by £1.50 a month and broadband tariffs by £3 a month from March 2025.
EE TV customers will have to pay an extra £2 a month.
Out-of-bundle services will still be subject to an annual 5% increase.
The provider has said those vulnerable customers on EE Basics or BT Home Essentials contracts will be exempt from any price rises.
Plusnet will also increase its broadband price by £3 per month from the end of March next year.
From August 12, 2024, customers joining or re-contracting with TalkTalk will see the monthly amount they pay for their broadband increase by £3 annually in April.