Broadband customers face up to 14% hike in bills, warns Which?

The Bank of England forecasts inflation at just below 10% for January, meaning millions of broadband customers will face a 14% mid-contract increase in their bills.

Customers of Plusnet, also owned by BT, will face the smallest hike of £87.15 among the five telecoms companies that use the mechanism surveyed by Which?

Given the telecoms companies pushed through inflation-busting rises of around 10% in April, next spring their customers will have seen their bills increase by between £120 and £156 in just two years.

Earlier this week, Labour said it would scrap the use of the mechanism and mid-contract price hikes if the party came to power.

Providers including Hyperoptic, Utility Warehouse and Zen Internet keep customers prices fixed for the term of their contract, while KCOM moved to cancel mid-contract rises this year.

Sky and Virgin Media do not employ the inflation-linked mechanism but they do institute price rises, but allow customers to switch providers without penalty if they choose to leave.