Martin Lewis issues warning over 'very worrying' 15% broadband bill hikes
The consumer champion is worried customers may face a massive increase in bills due to mid-contract clauses.
Martin Lewis has issued a warning to households over a potential 15% hike to their broadband bills.
The consumer champion has said he’s worried customers may face a massive increase in bills from March due to clauses allowing companies to raise prices 4% above inflation.
The rate of consumer prices index (CPI) inflation hit 10.7% in the year to November 2022, down from 11.1% in October.
Lewis’s MoneySavingExpert.com has now urged people to use its online broadband comparison tool to find the best deal before the changes kick in.
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Lewis tweeted: “Working on tonights @itvmlshow updating the energy bill situation, broadband and water bills.
“Broadband is very worrying, many have clauses allowing them to increase prices mid-contract by CPI or RPI + 4%. That could mean in March 15%+ rises for many. S***!”
In its latest newsletter, MoneySavingExpert.com said many households were "massively overpaying" for their broadband and those on older deals could be in line for a saving of more than £200 a year.
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It comes as consumer group Which? urged households to get ahead of any price hikes by haggling and switching.
The consumer group asked more than 5,000 people whose broadband, TV and broadband and/or mobile phone contract had ended in the previous 12 months whether they had haggled or switched and how much money they had saved.
It found that, on average, TV and broadband customers saved £162 by switching away.
Customers who did not switch but took the time to haggle with their broadband and TV provider saved an average of £90 a year, according to the survey.
There were also big savings to be had for broadband-only customers who switched, with the average being £92.
Broadband customers who haggled saved £43 typically.
When Which? spoke to mobile customers whose contracts had ended in the past 12 months it found that customers saved an average of £95 by switching and £62 by haggling.
The survey also revealed that 21% of broadband customers and 16% of TV and broadband customers did nothing when their contract ended.
Mobile customers were even less likely to take action, with 24% of those surveyed telling Which? they had not switched or attempted to haggle.