BT has issued the exact date it will raise prices for almost all of its customers this year – with two different price rises depending on what contract you’re on.
The broadband and mobile phone firm, which also runs mobile network EE, has announced that from March 31, 2025, all new and existing mobile customers will face either a percentage increase or a specific pounds and pence rise.
New rules issued by communications regulator Ofcom today outlawed percentage increases based on inflation, and instead all mobile and broadband customers signing up to a new contract must be told in plain pounds and pence figures how much their bills will increase.
BT has now announced that customers on its old pricing contracts face a rise of CPI plus 3.9%, which means given that CPI inflation rates are currently 2.6%, that customers face a 6.5% price rise on March 31.
Mobile customers who sign up to a contract with a pounds and pence figure at the outset will pay an extra £1.50, while TV customers will pay an extra £2, and broadband customers will pay £3.
This could be a larger price rise than the old model, depending how much you pay per month.
For example, a £30 a month contract rising by 6.5% would see bills increase by £1.95 per month. But TV customers will now pay a flat £3 increase.
In a message issued to customers, BT said: “Our annual price change is never an easy conversation to have with customers. It is, however, an important part of how we cover our increasing costs and keep investing in our networks and services to do more for the people we serve.
“We’re doing all we can to be smart with our cost base and we’re incredibly careful about what we pass on to customers. And we want to be clear about how and when any changes to prices will occur.
“From 31 March we’ll roll out our annual price change, with customers on two types of model across our brands: Pounds and Pence and CPI+3.9%.
“Why two models? In December 2023, Ofcom asked communication providers to move away from inflation-linked mid-contract price rises. We were the first operator in the UK to introduce a Pounds and Pence price change, aligned with Ofcom’s approach offering our customers a predictable long-term view of their annual price rise for the duration of their contract term.
“So, from 31 March 2025, for new and re-contracting mobile customers on the Pounds and Pence model, this annual increase will be an extra £1.50 a month. It will be £1.50 a month for connected devices (including laptops, tablets and smart watches), £2 a month for TV customers, and £3 a month for broadband customers.
“There will be customers on our CPI+3.9% model, because they were already in contract before we introduced the Pounds and Pence change. There will also be some customers with a mix of the two models across different products.
“For CPI+3.9%, we use the December rate calculated by the Office of National Statistics to calculate our price change. This was 2.5%, which means a price change of 6.4% (CPI:2.5% + 3.9%). On average, this year’s change is around £2 to £3 per month – a very small part of an average household’s bill.”
BT said that customers on social tariffs, and landline only customers, as well as tose on pay as you go, will be excluded from the price rises.
It continued: “A total of 2.6 million customers will be excluded from price change. This includes our Social Tariff customers, landline only customers who don’t have broadband with us or another provider, and those with PAYG on mobile.
“For everyone else, this small increase means we can keep giving our customers even more with the latest tech across fibre and mobile as we roll out 5G standalone and Wi-Fi 7 – setting a new standard for connectivity in and out of the home – continue to invest in our network and keep our most financially vulnerable customers connected.”
