Table of Contents
- TalkTalk is the latest company to announce a new broadband pricing structure
- Like EE and Plusnet, TalkTalk will increase all its broadband deals by £3 a month
- Customers who are in a financially vulnerable situation do not have to pay anything extra.
TalkTalk is the latest broadband firm to reveal plans to increase fixed-rate prices by up to 11 per cent, hitting those on cheaper deals hardest.
New and renewing TalkTalk broadband customers will pay an extra £3 per month from April 2025, in line with similar price increases set by BT, EE, Plusnet and Vodafone.
However, the flat rate means that those on lower-priced broadband contracts will see their bills rise more in percentage terms.
For example, someone on a TalkTalk Fibre 35 plan, paying £26 a month (one of the firm’s cheapest deals), will see their bills rise by 11 per cent.
On the rise: All broadband companies that have announced new pricing plans have moved to a flat rate of £3 a month, with the increase applying to all internet deals offered by the companies.
Someone on one of TalkTalk’s most expensive broadband plans, paying £45 a month, would see prices rise by 7 per cent.
TalkTalk customers who signed up for broadband before 12 August will see their bills rise under the current inflation-linked system in April 2025.
The company currently has around 2 million broadband customers.
The broadband provider currently increases its bills based on inflation plus 3.7 percent. With a current CPI of 2 percent, the old rules would likely have meant smaller increases next year.
Last month, regulator Ofcom banned inflation-linked price rises from January 17, 2025, arguing that they took many customers by surprise.
Instead, phone and broadband companies were asked to display medium-term price increases in pounds and pence prominently.
But Ofcom did not say the price rises had to be low, just clear, and This is Money has revealed just how big these increases are in percentage terms.
Broadband companies are already starting to switch to the new system ahead of schedule, with many announcing big price increases as well.
USwitch’s Ernest Doku said: ‘While it’s important that any price increases are known at the time of signing up to a contract, and that we move away from unpredictable increases linked to inflation, a flat-rate model across all packages will be more severe as a proportion for many customers on cheaper or average-priced contracts.
‘It is disappointing that providers who announced their changes in anticipation of or in line with Ofcom’s new guidance have chosen to apply across-the-board increases, as this is not the only way to adopt the pounds and pence model.
‘As other providers think about how to respond to rule changes from January 2025, we encourage them to consider other models.
‘This could include offering a fixed price for the entire duration of the contract, shorter contracts or smaller price increases relative to the initial cost of the contract.’
Susie Buckridge, TalkTalk CEO, said: ‘We remain fully committed to delivering great value broadband and ensuring our customers have a clear understanding of the price they will pay throughout their contract.
‘We will move from an annual inflation-linked broadband price increase to a fixed increase following new Ofcom guidance.
We believe this will help improve transparency and consumer understanding of the change.”
Some TalkTalk customers are exempt from price increases
TalkTalk is unique among broadband companies in that it does not offer social tariffs (cheaper, no-frills contracts where prices do not rise over the medium term).
Instead, TalkTalk is excluding its most financially vulnerable customers from its annual mid-contract broadband price rise.
Almost a quarter of TalkTalk customers were excluded from these price increases last year, many of whom were financially vulnerable.
To qualify, customers must call TalkTalk, who will then make a decision based on their circumstances.
Find the fastest and cheapest broadband, and see if you can save
Broadband, TV and phone contracts are notoriously strict and customers often let deals drag on for many years while providers jack up prices.
But you may be able to get faster broadband, a better TV package and a better phone deal, while saving money every month.
It’s always worth shopping around to see if you can save, especially now that the cost of living crisis is raging.
This is Money has partnered with Broadband Choices to give readers the ability to easily search for the best and cheapest deals on their broadband, mobile and TV.
Can you save? Compare broadband, TV and phone deals