Plusnet simplifies mid-contract price rises – find out how to cut your broadband bill

Plusnet announced yesterday it will inform customers about expected price rises in pounds and pence from now on.

Previously, the BT-owned company raised prices based on a percentage linked to inflation.

But since the inflation rate can vary each month, customers didn’t know exactly how much more they would be charged until it was confirmed.

Plusnet says it will bring in a fixed increase for all customers, including those who signed a contract before the scheme. Every year your bill would increase by £3 a month.

For example, if you’d entered a contract in July 2024 agreeing to pay £20 per month, from July 2025 your bill would increase to £23 per month and from July 2026 you’d start paying £26 a month.

The move comes ahead of plans by the regulator Ofcom to force all phone, TV and broadband contracts to set out prices in pounds and pence. If plans go ahead, these new rules should come into effect by October.

Ofcom chief executive Dame Melanie Dawes said these changes would give customers the “clarity and certainty” they need to get the best deals to fit their budgets.

“At a time when household finances are under serious strain, customers need prices to be crystal clear. But most people are confused by the unpredictability and complexity of inflation-linked price rise terms written into their contracts, which undermines customers’ ability to shop around,” she added.

How to save money on your broadband bill

In April, broadband and mobile prices went up to match inflation. This means you’re likely to pay £182.40 more a year for broadband.

But there are things you can do to make sure you’re not overpaying for broadband and cut your bills.  

Choose the right package for you

The faster your broadband, the more you pay for it. Consider your household needs and choose a speed to match. Don’t pay for something that exceeds your requirements.

You can use our free budgeting tool to help you figure out how much you can afford to spend on broadband.

The right package for you will depend on what you use the internet for, and how many devices are connected at any one time. Keep in mind, if the speed is too low for your needs, you might experience buffering.

You can check your current internet performance by taking a speed test. If you’re on a higher speed than you need to be on, you could move to a cheaper package to cut your broadband costs. As of 2022, UK broadband providers don’t charge exit fees for customers downgrading their package to a cheaper plan.

Pick the right contract length

The length of your contract is an important factor in how much you pay for broadband. Contracts range from monthly rolling deals to two-year commitments.

While short or rolling contracts can be tempting, they often come with higher monthly fees. So if you know you’ll be staying put for a while, a longer contract might be a better option.

Usually, you can usually bring your router with you when you move home. But if that’s your plan, make sure your next property is covered by your provider’s network - otherwise, you might need to end your contract early and pay a termination fee.

Bundle up

Bundling your broadband with your TV and phone services is often much cheaper than paying separately. Lots of providers, like Virgin Media and Sky, offer packages that include multiple services for one monthly payment.

Watch out for unexpected price rises

By law, providers have to make price rises clear in contracts before you sign up. They also have to tell you about a change to your bill 30 days in advance.

But some providers don’t include annual price rises in their contract terms and still increase them unexpectedly.

According to Ofcom rules, you can leave your contract early for free if your provider raises its prices by an amount higher than inflation without warning.

If you think your provider did this, make a complaint. If you don’t like how they deal with your complaint, you can take it to the ombudsman who will make an independent ruling on your case.

Look into social tariffs

If you get Universal Credit, you’re eligible for a low-income broadband contract. These contracts offer the same internet speed as regular packages but at a much cheaper price.

You could also be eligible for a social tariff if you receive any of the following:

• pension credit
• employment and support allowance
• jobseeker’s allowance
• income support

If you’re not sure whether your provider offers broadband and phone social tariffs, check Ofcom’s full list or ask your provider directly.

You can check you’re getting all the benefits you’re entitled to by using our free benefits calculator