Martin Lewis issues warning to Virgin Media customers ahead of April

The ITV star has spoken out
-Credit:Reach Publishing Services Limited


Martin Lewis has issued a warning to broadband users ahead of April price hikes - using Virgin Media as an example. The ITV star has spoken out over the danger of being bitten by price hikes despite Ofcom saying that from 17 January any new or recontracting broadband of mobile customer who has a price increase in their T&Cs should have it included in pounds and pence, not in percentage or inflation-linked terms.

“Firms must now say in pounds and pence before you sign up how the price will rise over the contract," Mr Lewis said. "So Virgin Broadband for example is saying new contracts it’ll rise £3.50 per month in April this year and April next year.

“So if you’re paying £25 now, in April you’ll pay £28.50 and then the following April you’ll pay £32, but this is only for new contracts or re-contracting.” Martin added: “These are new rules from Ofcom, they do boost transparency. But they can mean higher price rises for some.

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“Now in the consultation response said you should put a limit on it that it shouldn’t rise above inflation, they haven’t chosen to do that and we’ve seen the result. So look, think about it, a £3.50 increase if you’re paying £20 a month. That’s 17.5%.

“With inflation this year it would only have been 6% so it’s a lot more expensive. If you’re on a £60 a month contract, £3.50 is only 6%. So what it means many people on lower contracts and getting cheaper deals are going to see a rise of more than they would have done under the old system with this, and way above inflation.

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“So yes it boosts transparency but it doesn’t mean that it’s going to be cheaper, and for some it’s going to be more expensive.” If you joined Virgin Media after January 9, 2025 you'll see an extra £3.50 added to your monthly bill. This extra fee will be applied across broadband and paid-TV bundles.

Since this price hike is explicitly laid-out in the terms and conditions, Virgin Media says "you won’t be given a right to cancel your agreement during your minimum period without incurring an early disconnection fee". If you joined Virgin Media before January 9, 2025 the previous rules still apply.

That means your monthly price hike will be calculated based on the Retail Price Index (RPI) — a measure of inflation calculated by the Office of National Statistics (ONS) based on a “shopping basket” of over 700 consumer products and services, with the price tracked year-on-year — plus an additional 3.9%.