Phone bill price hike warning

More than 13 million mobile phone and broadband customers may see bills rise by up to £100 next year due to inflation-busting price hikes, Citizens Advice is warning.

The charity found that 90% of broadband customers and 70% of mobile customers were with providers who could raise prices halfway through contracts.

While products such as insurance or fixed-term mortgages remain the same price throughout a contract, mobile and broadband costs can fluctuate.

Many providers are set to increase prices beyond inflation and, in the worst cases, up to 3.9% higher.

The charity found that one in three mobile and broadband customers facing price hikes had already cut back on essentials such as food, energy and clothing. It is now calling for providers to axe these rises, which it predicts could cost consumers £2.5 billion extra in 2023.

As mobile and broadband services are relied upon by many people for work, managing benefits, and staying in touch with loved ones, Citizens Advice is stressing that access must remain affordable.

The charity also found that over a third of customers facing price rises were already worried about being able to afford these services, even at current price levels.

Dame Clare Moriarty, chief executive of Citizens Advice, said: “As we all pull together in the midst of a cost of living crisis, mobile and broadband providers should be finding every way possible to help people. We want to see them cancel mid-contract price rises this year.

“Ofcom and the government should then look to protect consumers from future ones.”