Phone and broadband to send bills soaring for millions next week
Mobile phone and broadband bills will jump by well above the rate of inflation for millions in the next week, even if they are in the middle of a contract.
The industry regulator, Ofcom, allows these mega-profitable firms to raise prices once a year – not just in line with inflation, but with a 3.9 per cent lump added on top.
In most cases, you can’t just quit your contract without paying a penalty – it’s in the small print.
However, standing alone among the big providers, Virgin Media – with a rise 13.8 per cent – is giving customers a 30-day option to quit and move elsewhere.
On average, households will see a rise of £11.25 per month after the 14.4 per cent price hike that the likes of BT are applying in April. Customers will add around £1.4 billion to the coffers of the UK’s major broadband providers as a result of the increased prices, too.
Our Wealth & Personal Finance team have been campaigning against the ‘bill hike charade’.
Now household-finance app Nous.co is calling for these unreasonable mid-contract price rises to be outlawed. The whole system is now under review.
Its CEO and founder, Greg Marsh, said: ‘It’s outrageous that Ofcom sanctions these massive rises, especially in a cost-of-living crisis. It was morally wrong when inflation was low but, now the consumer prices index is above ten per cent, it’s nothing short of legalised superhighway robbery.’
Source of data and images: dailymail