BT and EE to end CPI-linked rises for out-of-contract customers

BT and EE have confirmed they will move out-of-contract customers on older pricing terms onto their newer pounds-and-pence price rise model.

From March 2026, broadband and mobile customers who are still on CPI-linked price rises will instead see fixed cash increases, matching the terms already used on newer contracts.

The change brings older contracts into line with BT and EE's current pricing approach, as scrutiny around mid-contract price rises continues across the telecoms sector.

Out of contract price rise update

BT Group has confirmed it will move out-of-contract BT and EE broadband and mobile customers who are still on CPI-linked terms onto its pounds-and-pence pricing model as part of its 2026 price changes.

From 31 March 2026, affected customers will see prices rise by £4 a month for broadband, £2 a month for TV, and £2.50 a month for EE mobile, replacing inflation-linked (CPI-based) increases.

BT says the change will be initiated from 1 March 2026, with the date the new price applies confirmed individually in each customer's price-change notification.

Customers moved onto pounds-and-pence pricing will not be placed into a new minimum contract, and BT says it is not changing the annual price rise for customers who remain within the minimum term.

While BT has not set out detailed cut-off rules for customers whose minimum term ends during March 2026, the timing indicates the change is intended to apply across the remaining base of customers who took out contracts before BT and EE moved to pounds-and-pence pricing in April 2024, once those contracts come to an end.

BT has not yet confirmed whether the same approach will apply to Plusnet, although BT Group has historically maintained closely aligned pricing policies across BT, EE and Plusnet. For example, when BT and EE moved to a £4 a month annual price rise in 2025, Plusnet introduced the same increase shortly afterwards.

What this means for customers

For customers affected by the change, the key point is that it applies only once a contract is out of its minimum term.

BT has said it is not changing the annual price rise for customers who are still within a minimum contract, following criticism faced by O2 when it applied higher annual price rises to customers mid-contract. Customers who remain in contract will continue under the pricing rules set out when they signed up.

For affected out-of-contract customers, BT says CPI-linked increases will be replaced with the same fixed pounds-and-pence rises now used on its newer pricing model. From 31 March 2026, this means annual increases of £4 a month for broadband, £2 for TV, and £2.50 for EE mobile.

For customers who are still within a minimum term, pricing can vary depending on when the contract was taken out. For example:

• Contracts taken out from April 2024 are already on fixed annual increases of £3 a month for broadband, £2 for TV, and £1.50 for EE mobile.
• Contracts taken out from 31 July 2025 moved onto higher fixed increases of £4 a month for broadband, £2 for TV, and £2.50 for EE mobile.

While the move to pounds-and-pence pricing is intended to improve clarity and transparency, for many out-of-contract customers it is likely to result in higher increases than the old CPI-linked model, particularly now inflation has eased.

For example, on a £30 broadband service, an annual rise under the older CPI + 3.9% formula (assuming CPI at around 3%) would increase the price by just over £2 a month, compared with a £4 fixed increase under the new pricing.

That said, out-of-contract prices are typically already higher than in-contract deals, which can make comparisons less straightforward. Because the change does not place customers into a new minimum term, affected customers may want to check whether switching or recontracting could reduce their overall monthly cost, rather than assuming the new pricing will work out cheaper.

Why providers are moving this way

BT's latest announcement follows changes to the rules governing how price rises are set on new broadband and mobile contracts, which now require providers to state increases in pounds and pence rather than linking them to inflation.

From a regulatory and reputational perspective, BT has taken a lower-risk approach by applying the change only once customers are out of contract, rather than altering pricing mid-term.

That distinction matters following the reaction to O2, which applied higher annual price rises across its customer base while remaining within the rules, but still faced significant criticism for doing so.

O2's experience highlighted a gap between what providers are allowed to do under current rules and what customers consider fair or acceptable. That gap is now part of why Ofcom is reviewing how mid-contract price rises are handled, even where exit rights are offered.

However, while more restrained, BT's approach does not remove the commercial effect. Fixed cash increases set at today's levels are higher than CPI-linked rises would be in the current inflation environment, meaning they deliver more predictable - and often higher - revenue year on year.

For customers, the trade-off is mixed. Pounds-and-pence pricing is simpler and easier to understand, but it also removes the possibility of smaller increases during periods of lower inflation. And as broadband and mobile services increasingly function as household essentials, the practical ability to avoid or absorb higher rises becomes more limited.

Seen in that light, the shift away from CPI-linked pricing looks less like a technical adjustment and more like a structural reset shaped by regulation - one that prioritises certainty for providers, even when it results in higher costs for customers.