Martin Lewis has warned broadband users they could face "worrying" price rises from this spring. He said many will have clauses in their deals meaning prices can be increased in the middle of a contract.
He said this allowed for prices to rise by inflation - either by CPI (Consumer Prices Index) or RPI (retail price index) - plus 4%. The money saving expert said on Twitter on Tuesday (January 10): "That could mean in March 15% rises for many. S**t!"
Returning to the subject in the first 2023 episode of his ITV money show, Martin repeated the warning. He told viewers: "Many broadband firms' clauses allow them mid-contract to do inflation rate plus up to 4% increases. If they enact them this year this could mean 15%-ish hikes this spring, it usually happens in April, for most of the major broadband providers, which is going to be another hike for many people
"Ofcom needs to look at this...above inflation price hikes being able to happen each year in contract doesn't seem right to me."
Martin said even switchers' deals could do this - albeit at a smaller amount. However he said over seven million people are out of contract and could find deals at half their current price and double the speed.
And he urged people who do not want to switch to haggle - by calling their provider and asking about the deals available to new customers. Martin said those on Universal Credit should be enquiring with their provider about cheaper, "social tariffs" to take advantage of the cheaper broadband they are entitled to.
