Mail Online

Superhighway robbery

That’s the verdict of one money-saving expert as broadband and phone giants send bills soaring for millions next week

By DANIEL JONES CONSUMER AFFAIRS EDITOR

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.

This will result in a rise of over 14 per cent on bills, and, in some cases, as much as 17.3 per cent.

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 costof-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.’

Don’t get caught out by the mid-contract price hikes

CHECK if this applies to your deals now. You may not be able to do much about it if it does, but at least you will know what to expect: forewarned is forearmed.

But, before you panic, not all providers do it. Full-fibre broadband challenger Hyperoptic never hit its customers with mid-contract hikes and are actively campaigning against the practice.

Some providers, such as Giffgaff and Smarty, sell one-month rolling contracts which aren’t impacted by inflation-based price hikes.

Find out if your mobile provider is bumping up prices in April, how it compares to other providers and how much it’s going to cost you with a tool at nous.co/mobile-hikes.

Ditch the giant providers for lesser-known ones

IT CAN be tempting to opt for household names such as O2, EE and Virgin Mobile. But you can often get comparable speeds and identical coverage from lesserknown networks, such as Voxi, Giffgaff, Smarty and iD Mobile.

The same goes for broadband in some areas, although a few of the smaller firms only operate in certain areas of the UK. Hyperoptic, for instance, covers about a million homes in the UK. It’s always worth checking to see what is available where you live.

Can you get a social tariff to slash broadband costs?

SOCIAL tariffs are cheaper broadband rates available for anyone on Universal Credit or a range of similar benefits.

Big-name providers such as BT, Sky, Virgin Media and Now offer them. Despite this fewer than 3.5 per cent of eligible households take advantage.

A social tariff can cost as little as £15 a month compared to an average cost of about £35.

It is true that the social tariff offers fairly basic broadband, but it should be good enough unless you have a house full of avid gamers.

Make the switch to a SIM-only mobile deal

IF YOU’RE happy with your current phone and don’t need a shiny new version, then consider getting a SIM-only deal. These are cheaper as you’re only paying for the data and minutes you actually use and not the cost of the phone.

If you did want a new phone then buying it outright is still often cheaper than going through a monthly contract deal. Even better, you could consider getting a refurbished phone – from a reputable seller or trader with a guarantee (such as eBay and Amazon). They are often great value.

Prepare to haggle with your current network

SHOP around to find the best deals and, once you’re happy that you’ve done your research, start negotiating with your provider.

There’s no guarantee that they’ll give you a better deal, but it’s always worth a shot. Be prepared – that means seeing what prices are on offer elsewhere. If they’re cheaper than your current tariff, you’ve got some real ammunition to work with.

Most phone and broadband firms have a retentions department whose job it is to stop customers walking away. Staff there will have access to better deals and discounts than anywhere else. Be polite, but insistent and threaten to leave. You don’t actually have to leave – just say you need to consult with the other half and that you’ll ring back. It’s worth trying if you’re with Virgin Media and have its 30-day option to quit.

Don’t pay for more mobile data than you really need

WHEN it comes to mobiles, millions of people are paying for hefty data allowances they never use.

Studies show the average Brit gets through 4.5GB of data per month, but many are paying for much more than this.

Speak to your provider to find out how much you’re really using each month and make a note to switch to a cheaper deal with a lower data allowance as soon as you can.

Use renewal reminders to track contract end dates

MILLIONS of people are out of contract for their mobile and broadband and will likely be overpaying by not switching to a better deal. Your provider must tell you when your contract is ending, but people often miss the notifications (or see them and then forget to follow them up).

Websites such as nous.co remind you for free when your mobile contract is up for renewal, giving you the time to search around for better deals or haggle with your provider.

Utilise providers’ caps on your spending

SOME mobile providers let you choose a cap on your bill, which means you cannot spend anything over the monthly amount agreed in your contract. This can prevent you from racking up an unexpected, expensive bill.

ATIN of Heinz Baked Beans costs £1.80?! How much?! When shopping in my local Co-op last week, I had to do a double take. I love baked beans. (Ideally poured over a couple of potato waffles, with a bit of grated cheese and a lot of black pepper.) But they seem to have turned from a cupboard staple to an expensive luxury in recent months.

Economic forecasters were caught out last week when the latest official figures showed that inflation is still on the rise. Most had predicted it would fall. But, I’m sure many of us shoppers are not surprised in the least. Every week we see new price rises. Budgets are squeezed ever tighter.

Worse, the latest round of price hikes are not on nice-tohave items. They’re on essentials: food, drink, clothes, heating, council tax.

We can’t simply keep our costs down by reining in our spending. Sure, we can buy cheaper groceries, turn the heating down a little and cut back on any remaining luxuries – if we’ve not done so already. But, ultimately we still need to eat, stay warm and pay our taxes.

So how, then, do we deal with inflation?

Governor of the Bank of England Andrew Bailey shared his own controversial suggestion on Friday.

He pleaded with firms who set prices to think twice before putting them up too steeply.

‘I would say to people who are setting prices – please understand, if we get inflation embedded, interest rates will have to go up further and higher inflation really benefits nobody,’ he said on BBC Radio 4’s Today programme.

His comments prompted an outcry. Most firms are loath to pass on extra costs to their customers and take a hit to their margins before doing so. Many that do raise prices do it just to stay afloat.

Perhaps if some individual companies take heed of Bailey’s words, it might have a slight impact on inflation.

But, I know what would really make a difference.

Next month, the broadband and telecom giants are pushing up their prices for millions of people – many by as much as 17 per cent.

This will gouge a huge chunk out of the budgets of most households. Everyone from the richest to the poorest will be affected as broadband and phone access is now an essential of everyday life.

The Mail on Sunday has been calling for these providers to rein in their above-inflation, mid-contract price hikes.

We believe they are unfair on cash-strapped households who don’t know when they sign up to a contract how much they’ll be paying by the end of it.

TODAY we plead again. Not only would a bit of restraint help households. It would also support Bailey’s efforts to keep inflation under control.

Most contracts have aboveinflation price rises baked into them. BT, EE and Plusnet are increasing bills by 14.4 per cent, O2 and Virgin Mobile by 17.3 per cent on airtime, and TalkTalk and Virgin Media by 13.8 per cent on average. Then, this time next year, they’ll increase all over again.

It’s time to stop this spiral. Meanwhile, I’m switching to own-brand baked beans. Any recommendations?

Built To Move Day Two

en-gb

2023-03-26T07:00:00.0000000Z

2023-03-26T07:00:00.0000000Z

https://mailonline.pressreader.com/article/282531547654064

dmg media (UK)