The latest inflation figures are in with the UK being hit by a surprise rise to 4 percent – up from 3.9 percent in November. Although that figure is down considerably from a year ago it will still affect future outgoings especially for anyone who has broadband with firms such as BT, Vodafone and EE.
All of these popular suppliers use the Consumer Price Index (CPI) to adjust bills and with that rate rising it means higher costs for homes. For example, BT currently takes the CPI figure and adds 3.9 percent on top to work out how much extra to add to monthly outgoings.
All of these figures and rates can be pretty confusing especially as every bill will go up by a different amount. That’s why the team at Which? has launched an easy-to-use calculator which shows exactly how much your bill will go up by.
All you have to do is confirm your supplier and then pump in how much you pay. The sums are then done for you so you can see how bad things are about to get.
As a quick example, the Which? calculator says that a BT customer currently £40 per month will see things rise by £3.16 or £37.92 per year. Meanwhile, those using TalkTalk will see things go up by £3.08 per month on a £40 bill.
Some firms such as Virgin Media and O2 use the Retail Price Index RPI rate to adjust bills and that won’t be confirmed until February 14.
Speaking about the new rises Rocio Concha, Which? Director of Policy and Advocacy, said: “This announcement could trigger a new wave of price hikes from big broadband and mobile providers – just 12 months after many firms imposed price increases of more than 14% on customers. It would be completely unacceptable for providers to follow BT and inflict another above inflation increase on customers after Ofcom proposed banning this practice, saying it causes substantial consumer harm.
“Telecoms providers must step up and do the right thing by immediately scrapping any plans to hit their customers with above inflation price hikes this April.”
