TalkTalk switch to annual price increases

Many customers will see their broadband costs increase by around £2 per month from April 2021 before a regular annual increase takes effect from April 2022.

New customers will automatically be contracted into the new pricing structure, but existing customers can exit their contracts within 30 days penalty-free.

In a separate move, Tesco Mobile have unveiled a campaign calling for an end to mid-contract price hikes by mobile operators and broadband providers.

Credit: chrisdorney/Shutterstock.com

TalkTalk changes

TalkTalk have removed their commitment to ensure no mid-contract price rises for new customers and those taking out a fresh broadband contract from 1 March 2021.

In addition, existing customers who took out a broadband contract before 10 November 2020 will see their bills increase by just over £2 per month from April.

From April 2022, annual increases for TalkTalk customers will be calculated at a rate of inflation plus 3.7%, similar to the increases baked into contracts from the likes of BT and EE.

Customers who took out contracts before 10 November 2020 can exit their contract within 30 days if they're unhappy with the changes to their contract.

This is because the increase is classed as an out-of-contract price rise given that customers signed a contract expecting fixed prices for the length of their term.

Anyone who took out a contract from 10 November up to 28 February 2021 isn't entitled to leave penalty free as those customers will not see price rises on their bills this April.

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Increased traffic

TalkTalk say they have seen unprecedented demand on their broadband network over the last year, with a 40% increase in usage during 2020 due to coronavirus lockdown measures.

As a result, they have had to invest in their network to improve reliability, and they say this has left them with no choice but to raise prices.

A spokesperson for TalkTalk told Choose: "Over this extraordinary last year, we've seen broadband usage soar by 40% and we've had to invest heavily in our network as a result. Unfortunately, this has meant that, alongside other ISPs such as BT, Virgin and Sky, we have had to raise our prices. We are as committed as ever to being the country's only scale value broadband provider."

As we explore in our guide to the cheapest UK broadband deals, TalkTalk are among the companies consistently challenging for the crown of the cheapest UK ISP.

They have also recently launched fibre to the premises (FTTP) services in four cities with speeds of up to 506 Mbps.

Tesco Mobile campaign

In light of recent price hikes from providers mobile and broadband providers including EE, Sky and Virgin Media, Tesco Mobile have launched a campaign calling on operators to reverse their recent price hikes and keep prices frozen for customers for the duration of their contracts.

They commissioned research from YouGov which found:

• 50% of customers with a mobile contract weren't aware network providers could put up their prices mid-contract
• 38% of Brits are worried small increases to household bills could be financially difficult for them
• 14% worry they could face disconnection because of arrears

The research also found 69% of customers were unaware what Consumer Price Index (CPI) means. This is the metric used by many operators (now including TalkTalk) to calculate their annual price increases.

In a statement, Tesco Mobile CEO, Tom Denyard, said, "Beyond being misleading, our research has shown that mid-contract price rises in our industry will have a financial impact on those who have already been hit hard."

Customers looking to switch mobile provider can compare mobile deals with Choose.