- TalkTalk the latest firm to announce new broadband pricing structure
- Like EE and Plusnet, TalkTalk will put up all its broadband deals by £3 a month
- Customers who are financially vulnerable do not have to pay any extra
TalkTalk is the latest broadband firm to reveal plans for flat fee price rises of up to 11 per cent – hitting those on cheaper deals hardest.
New and renewing TalkTalk broadband customers will all pay an extra £3 a month from April 2025, in line with similar price rises set by BT, EE, Plusnet and Vodafone.
However, the flat fee means those on the lowest-priced broadband contracts will see their bills rise by the most in percentage terms.
For example, someone with a TalkTalk Fibre 35 deal, paying £26 a month – one of the firm’s cheaper offers – will see their bills go up by 11 per cent.
On the up: Every broadband firm that has announced their new pricing plans has moved to a flat fee of £3 a month, with the increase applying across every internet deal firms offer
Someone with one of TalkTalk’s more expensive broadband-only deals, paying £45 a month, would see prices rise by 7 per cent.
TalkTalk customers who took out broadband deals before 12 August will see their bills go up under the existing inflation-linked system in April 2025.
The firm currently has around 2 million broadband customers.
The broadband provider currently increases its bills by inflation plus 3.7 per cent. With CPI currently at 2 per cent, the old rules would have likely meant lower rises next year.
Last month regulator Ofcom banned inflation-linked price rises from 17 January 2025, arguing that these caught many customers unaware.
Instead, phone and broadband firms were told to display mid-term price rises in pounds and pence in a prominent way.
But Ofcom did not say any price rises had to be low, just clear – and This is Money has revealed just how big in percentage terms these hikes are.
Already broadband firms are beginning to shift to the new system ahead of schedule – with many announcing large price jumps to boot.
Ernest Doku, of USwitch, said: ‘While it is important that any price rises are known at the point of taking out a contract, and that we move away from unpredictable inflation-linked increases, a flat-rate model across all packages will be harsher as a proportion for many customers who are on cheaper or average priced contracts.
‘It’s disappointing providers who have announced their changes in anticipation or following Ofcom’s new guidance have all chosen to apply blanket increases, as this is not the only way to adopt the pounds and pence model.
‘As other providers think about how to respond to the changes in rules come January 2025, we encourage them to consider other models.
‘This could include offering a fixed price throughout the whole duration of the contract, shorter contracts or smaller price increases that are relative to the initial contract cost.’
Susie Buckridge, TalkTalk chief executive, said: ‘We remain fully committed to providing great value broadband and ensuring our customers have a clear understanding of the price they will pay throughout their contract.
‘We will be moving away from an inflation-linked annual broadband price rise to a flat increase following Ofcom’s new guidance.
‘We believe this will help improve transparency and consumer understanding of the change.’
Some TalkTalk customers exempt from price rises
TalkTalk is unique among broadband firms in that it does not offer social tariffs – cheaper no-frills contracts where prices do not go up mid-term.
Instead, TalkTalk excludes its most financially vulnerable customers from its annual mid-contract broadband price rise
Almost a quarter of TalkTalk’s customers were excluded from these price rises last year, many of whom were financially vulnerable.
To qualify, customers must call TalkTalk, which will then make a decision on their circumstances.
Find the fastest and cheapest broadband – and see if you can save
Broadband, TV and phone contracts are notoriously sticky, with customers often allowing deals to run on for many years while providers raise prices.
But it may be possible for you to get faster broadband, a better TV package and an improved phone deal, while saving money each month.
It is always worth comparing prices to see if you can save – particularly as the cost of living crisis bites.
This is Money has partnered with Broadband Choices to offer readers the chance to easily search for the best and cheapest deals for their broadband, mobile and TV.
> Can you save? Compare broadband, TV and phone deals
