It has been predicted that millions of broadband customers across the UK will see their bills increasing in spring this year. This is according to a number of reports, such as this from the Express, which suggests that many providers will be raising their monthly costs by as much as 13.9% - a record-breaking amount.
If this does prove to be the case it would see a typical £40 per month bill go up by £5. If you're paying £60 or more, your bill could rise by £8.
During the current cost of living crisis, this of course won't be welcome news for the households that are already struggling with price rises on everything from their food, to gas and electricity and mortgage payments. But to make matters worse, there's every possibility that the alongside hikes to our broadband bills, these costs may go up again in April as well.
However, while there's only so much we can do to make our utilities and groceries more affordable, a positive is that there are still cheap broadband deals to be found if you shop around and lock in a contract now.
What's causing the increases?
The majority of Internet Service Providers - including BT and Plusnet - make use of the Consumer Price Index (CPI) to partly calculate their price rises. The next CPI figures will be published on January 18 and usually the knock-on effects are realised by the following March or April.
In isolation the CPI rise could be 10% or more as inflation still continues to go up, but most providers annually raise their prices by between 3 and 4% anyway. So when added together, these factors would see the record-breaking increases experts are forecasting for 2023.
Unsurprisngly, there have been calls for the government to step in and prevent or mitigate these increases, which could end up costing consumers a collective £2.5bn. One example of this was from Dame Clare Moriarty, Chief Executive of Citizens Advice, who said:
"Every day our advisers hear from people barely making ends meet as they try to cope with inflation and soaring household bills.
"As we all pull together in the midst of a cost-of-living crisis, mobile and broadband providers should be finding every way possible to help people.
"We want to see them cancel mid-contract price rises this year. Ofcom and the government should then look to protect consumers from future ones".
How can households try and avoid the price hikes?
If you are concerned about this rising broadband costs, as we mentioned earlier, one course of action to take is to look to switch to a cheaper contract now. To see what's available near you, take a look at our deals in the widget below or head to our cheap broadband-only deals page.
Alternatively, you may want to speak with your provider now about the likelihood of them raising their prices. You may then also want to negotiate on your monthly payments and see if you can move onto something more affordable.
