Home Business News Personal finance expert slams inflation-topping mobile and broadband bill hikes

Personal finance expert slams inflation-topping mobile and broadband bill hikes

by LLB Finance Reporter
1st Apr 23 12:12 pm

Empowered by terms and conditions, all major telecom providers are increasing mobile and broadband bills mid-contract this April, impacting millions of customers across the country.

These record price hikes include an inflation-calculated component as well as an additional and arbitrary 3.9% in most cases. The inflation-adjusted component is calculated by either the Consumer Price Index (CPI) for December 2022 or the Retail Price Index (RPI) for January 2023. Respectively, these stood at 10.5% and 13.4%.

Customers across all major providers, including EE, O2, Vodafone and TalkTalk, face increases varying between 13.8% – 17.3% depending on when they joined. O2 customers face the largest increase of up to 17.3%.

This comes after consumers have faced record hikes in energy bills, food and other essentials during the most challenging economic climate in decades.

Mohsin Rashid, CEO of ZIPZERO, said: “Over the past 30 years, broadband and mobile phones have transitioned from luxury products to practical tools, to now essential components of life in the digital age. Despite such necessity, this month, millions face record bill hikes of up to 17.3% that could see them fall into arrears.

“Adding to the pressure, broadband and mobile phones are but the latest in a long list of essential bills to rise massively over the past twelve months. Consumers are facing pressure from every direction; the OBR predicts this will result in the biggest fall in living standards since the second world war.

“Against such a challenging economic climate, it is only right that we begin to question the validity of private companies subjecting consumers to variable prices that not only increase with inflation but exceed it. In the meantime, consumers must continue to be savvy with the ways they manage their finances, exploring all manner of tools from receipt scanning and cashback through to comparison platforms and loyalty schemes.”

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