More than 13 million mobile and broadband customers may see their bills rise by as much as £100 next year due to inflation busting mid-contract price rises.
Citizens Advice has found that 90% of broadband customers and 70% of mobile customers are with providers who can hike prices halfway through the contract. While some products, like insurance, remain the same price throughout a contract, mobile and broadband costs can fluctuate because Telecom providers often use the consumer price index of inflation to determine their price rises.
Mobile and broadband has become an important utility, relied on by many for employment, managing benefits and staying in touch with loved ones, Citizens Advice is warning that access must remain affordable. The charity found that over a third of mobile and broadband customers facing price rises are already worried about whether they will be able to afford these services at their current costs.
With the Bank of England estimates putting inflation at 12.6% in January 2023, it is likely that mid-contract rises will be higher than previous years, possibly costing consumers an extra £2.5 billion in 2021. All at a time when consumers are already struggling with other costs.
Research conducted by Citizens Advice found that one in three mobile and broadband customers have already started to cut back on everyday essentials such as food shopping, energy, and clothing. The charity is now calling on providers to cancel mid-contract price rises this year, and for Ofcom and the Government to look at ways to protect consumers from future rises.
Rosie Waters, CEO of Citizens Advice North Herts said, “Our advisers are supporting people from our community who are struggling to make ends meet coping with rising energy costs and soaring household bills. We are calling on mobile and broadband providers to play their part in supporting people through this cost of living crisis by cancelling mid-contract price rises this year and for Ofcom and the Government to find ways to protect consumers in the future.”
Remember, we are here to help with a range of issues. You can contact Citizens Advice North Herts via northhertscab.org.uk or call the Hertfordshire Adviceline 0800 144 8848
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here