Money Saving Expert Martin Lewis has issued a 'worrying' two month warning to anybody who has broadband. The founder of Money Saving Expert (MSE) wants people to take action immediately.
Martin has warned of a huge shift taking place in March that will affect everyone with a broadband account. He's called the changes 'very worrying', but has issued advice on how best to deal with it.
MSE founder Martin Lewis has warned that price rises are coming into place this spring. Even if you're already in a contract, your provider will still be allowed to increase your bill.
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The MoneySavingExpert explained how telecom firms could be set to bring in mid-contract price rises equivalent to an increase of 15%. Many companies hike bills by the rate of Consumer Price Index (CPI) inflation or Retail Price Index (RPI) inflation, plus roughly another 4% on top.
It means families who are already struggling under the cost of living crisis face a huge increase on their internet bill, if price rises are brought in. Martin explained during his ITV Money Show on Tuesday evening: “If they enact them this year, and the likelihood is they will, this could mean 15%ish hikes this spring.
“This usually happens in April for most of the major broadband providers, which is going to be another hit for many people. If you’re paying £40, that’s £6 a month extra. Even switchers’ deals will probably do this but of course, it’s £6 a month extra on £40 or if you pay £20 a month, it’s only £3 a month extra.”
To help lower your costs, Martin urged households to check if they can slash their broadband bills now. Roughly seven million people are out of contract and are likely paying too much for their internet - as the best deals are typically for new customers.
If you're out of contract, Martin first suggested checking prices elsewhere to see what other deals are available. Next, call up your current provider and see if you can haggle them down to match the best price you've seen with another company.
A recent MoneySavingExpert poll revealed an over 75% success rate when haggling with TalkTalk, Virgin and Sky, plus “high success rates at many other broadband providers too”. Switching... don’t worry about it too much - I can’t promise it will be smooth every time - it’s only two hours-ish of downtime,” he urged.
“It’s your new firm who sorts it out for you and they’ll cancel your old provider. Some of you… don’t want to switch, you like where you are, in which case: haggle.” Martin continued: “As a loyal customer, the first thing I would do is, I’d get on the phone and I’d say: I’ve seen what you’re charging new customers.
“I’d make sure you’ve seen what other providers are charging in your area, because it’s postcode dependent… and say I’m not willing to pay that amount, can you offer me a better deal? If they say no… you say I want to go through to customer disconnections… this is where they can do the big deals.
“Always be polite and if they don’t give you that price, I would be pretty annoyed and I’d want to ditch and switch and go elsewhere.” Martin later highlighted some of the cheapest deals right now that are available through comparison websites.
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