Millions of BT and EE customers are set to see their monthly broadband and mobile bills increase by a fixed amount in the coming weeks, as the telecoms giant shifts its pricing model.
The New 'Pounds and Pence' Price Rise
From March 1, 2026, out-of-contract customers with BT and EE will see their monthly payments rise by exactly £4. This marks a significant change from the previous system of inflation-linked percentage increases. The company announced the move on Friday, January 16, stating it aims to provide more predictable and transparent pricing for consumers.
While this flat-fee structure may seem simpler, industry experts have warned it could hit some households harder than others. Alex Tofts, a broadband specialist at comparison site Broadband Genie, highlighted a potential pitfall. "While the 'pounds and pence' flat fee may sound more straightforward, it has a disproportionate impact on customers with lower monthly bills," he explained. "This means many will actually pay more under this structure than before."
How Consumers Can Fight Back and Cut Costs
The key piece of advice for those affected is to review their options. Since these customers are out of contract, they are free to switch providers without facing any exit fees. This presents a prime opportunity to shop around for a better deal that could not only offset the £4 increase but potentially lower their overall monthly expenditure.
One alternative currently offering competitive rates is Sky, which is running a winter sale. For instance, Sky's 24-month broadband contracts start at £25 per month for a 75Mbps service. This compares to a similar price point from BT for a slower 36Mbps plan. Furthermore, Sky still uses a percentage-based annual price increase. Based on last year's 6.2% rise, a customer on a £26 Sky package would see an increase of roughly £1.60 – substantially less than BT's £4 flat hike.
An important consumer right offered by Sky, and mandated by regulations, is the ability to cancel your contract within 30 days of being notified of a price increase without incurring early termination charges. Sky confirms it will notify customers clearly of any changes and outline these cancellation rights.
Wider Market Impact and the Search for Value
The shift in pricing is not isolated to BT Group. Other major providers, including Plusnet, Virgin Media, and TalkTalk, are also implementing similar £4 monthly increases for relevant customers from March. This makes comparing deals across the market more crucial than ever.
For those seeking price stability, some providers promise no mid-contract price hikes. London-based Community Fibre offers this guarantee, though its services are currently limited to the capital. The broader message from consumer advocates is clear: loyalty often doesn't pay. Regularly checking the market, especially when out of contract or facing a price rise, is the most effective way to ensure you are getting the best speed and value for money in your area.
BT has defended its decision, linking the price changes to necessary investment. "Price changes enable us to make the ongoing investments necessary to provide our customers with the best networks, leading innovations, new services and better support," a spokesperson said. "This is vital at a time when consumer demand for data and service quality has never been higher."
