BT raises annual broadband price hike to £4 a month

From 31 July 2025, any new or renewed broadband contracts with BT and EE will be subject to an annual price rise of £4 per month, applied each year on 31 March.

This marks a £1 increase on the previous annual rise of £3 per month.

Existing broadband contracts, as well as BT and EE TV plans, remain unchanged and continue to see a smaller annual increase of £2 per month.

Annual price rise hike

BT and EE have announced updates to their annual price rise policy, affecting both broadband and EE mobile plans.

From 31 July 2025, any new broadband customers - or existing customers who renew their contract - will face an annual price rise of £4 per month, applied each year on 31 March.

EE mobile plans will also now see an annual increase of £2.50 per month.

Meanwhile, it has also been reported Plusnet broadband plans are expected to move to the £4 per month annual increase from 5 August 2025.

Existing contracts taken out since 10 April 2024 remain on their current terms, with broadband increasing by £3 per month and EE mobile by £1.50 per month, unless the customer renews.

Older contracts, started before April 2024 (or before July 2024 for Plusnet), will continue to follow the CPI + 3.9% annual rise formula.

Pounds and pence

BT are the first provider to increase the pounds-and-pence-based annual price rise they adopted following Ofcom's ban on inflation-linked rises.

BT moved to this method in April 2024, months before the new rule came into effect in January 2025, with many other providers then following their lead and also setting a £3 per month annual increase.

Now, however, BT, EE, and soon Plusnet, will have the highest annual increases of any broadband provider, at £4 per month.

Virgin Media applies a £3.50 monthly increase, but this covers both broadband-only and broadband + TV bundles. By comparison, BT increases the price of TV plans separately by £2 per month, meaning bundle customers now face £6 per month in combined annual rises, up from £5 previously.

These changes follow Ofcom's new rule requiring mid-contract price rises to be set in pounds and pence to improve transparency. However, the regulator did not introduce a cap on the amount providers can raise prices by, raising concerns among consumer advocates that the new system still leaves customers vulnerable to steep increases.

We've previously highlighted how, even at £3, the new system can already be more expensive than the old CPI + 3.9% model, especially given inflation has now fallen from its recent peaks.

With annual price increases now rising to £4 per month, it's becoming clear that the pounds-and-pence approach, while more transparent, isn't necessarily protecting customers in the way Ofcom intended.