Plusnet issues new rules for 'all' broadband customers as it follows BT

Plusnet has followed BT and announced a major pricing shake-up for customers. It will be changing from inflation-linked mid contract price rises to increases that are set in "pounds and pence” after Ofcom proposals, the provider has announced.

Any planned increase will be applied each March 31 starting next year (2025), Plusnet has said today, and these increases will apply to both new and existing customers who take out contracts from today (July 11).

A Plusnet spokesperson said: “Our focus is to provide Plusnet customers straightforward broadband at straightforward prices. We have introduced a pricing model aligned with Ofcom’s approach, offering our customers a predictable long-term view of their contract terms. These new contracts will make it simpler for our customers and provide more certainty on what annual price changes will be.”

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“We are very supportive of Ofcom’s recommendation to show upfront pounds and pence amounts for price change and remain committed to supporting all our customers, especially those who are financially vulnerable.”

Ernest Doku, telecoms expert at Uswitch.com, said: "For example, deals that cost £20 a month initially will see a yearly increase of 15%, whereas deals that cost £30 will see an increase of 10% meaning some customers may end up paying more than they would have when they were inflation linked.

“Like other providers, Plusnet’s change excludes existing customers and out-of-contract customers, who will still be subject to inflation-linked and percentage-based price hikes come next year. As Ofcom is expected to rule on banning inflation-linked increases in the near future we will likely see more providers make similar announcements to this."

He added: "If you are signing up to a new contract, carefully review the terms related to mid-contract price rises to make sure you’re clear on the total cost. Some providers don’t raise their prices mid-contract so it could be worth exploring what’s on offer elsewhere.”