BT and EE's key change for price increases affecting millions of customers announced

BT and EE have announced significant changes to their approach to mid-contract price hikes, affecting both mobile and broadband customers.

The BT Group, which also owns Plusnet, has declared it will be "moving away" from inflation-linked mid-contract price rises for its monthly plans. In a shift from the current practice, the company will now present annual price increases in "pounds and pence".

Presently, broadband and mobile firms can raise prices mid-contract based on inflation, with an additional increase of up to 3.9%. These adjustments are typically informed by the Consumer Prices Index (CPI) inflation figures from December or the Retail Prices Index (RPI) from January.

Previously, BT Group adjusted its mid-contract price rises according to the rate of inflation, with a 7.9% increase implemented this year on March 31. Moving forward, however, the group will introduce a set fee hike for new and upgrading customer contracts.

From March 31, 2025, new and re-contracting mobile customers will see a monthly bill increase of £1.50, and this fixed rise will also apply to connected devices such as laptops, tablets, and smartwatches, reports the Mirror.

Customers of both broadband and TV services should brace themselves for price hikes this summer, with increases of £2 a month for the former, and £3 a month for the latter. Moreover, EE has also made clear that any out-of-bundle services will undergo an annual uptick of 5%.

Plusnet customers will bear the brunt later in the summer. Yet, those on social tariffs, including EE Basics and BT Home Essentials, can breathe easy as novelties in pricing retain no leverage over these plans.

In response to these developments, Marc Allera, CEO of BT Group's Consumer division, commented: "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."

BT Group has become the first to amend its mid-contract price rise policy, adopting a "pounds and pence" method previously suggested by telecoms watchdog Ofcom. If Ofcom's upcoming consultation leads to approval, new regulations will mandate all providers to specify price increases in pounds and pence.

Consumer champion Which? has been actively campaigning against inflation-linked price rises, calling for a ban. Which? welcomed BT's shift as a "positive" development, yet noted the impact of this year's significant hikes on customers.

Rocio Concha, Which? Director of Policy and Advocacy, commented: "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."

Concha added: "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."

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