Sky to hike bills for millions of customers by up to £38 a year in weeks
MILLIONS of households face huge price increases this spring, as a major provider announces plans to raise broadband and TV bills.
Sky said this morning the average customer will see their bill rise by 6.2% from April 1.
This follows an average increase of 6.7% last year and an 8.1% rise in 2023.
While new Ofcom rules require providers to specify future price rises in pounds and pence upfront, these regulations, effective from January 17, only apply to providers that used to link mid-contract increases to inflation.
As Sky's price adjustments are not based on inflation, the company is not obligated to detail potential increases beforehand.
This means that the exact increase in your bill will depend on the specific Sky products you have, along with any additional services you subscribe to.
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For example, if you currently pay £39 per month for Sky TV, Netflix, and Full Fibre 150 broadband, your bill will increase by £2.42, bringing the total to £41.42 a month.
Customers paying £35 per month for Sky's Essential TV and Full Fibre 150 will see an increase of £2.17, raising their total to £37.17 a month.
Meanwhile, those subscribed to Sky's Essential TV and Full Fibre Gigafast Broadband at £51 per month will experience a rise of £3.16, taking their new total to £54.16 a month.
These price increases could result in some households facing bill rises of up to £38 per year.
A Sky spokesperson said: "Our Sky broadband and TV products will see an average increase of 6.2% from April.
"We have worked hard to minimise the financial impact to customers while ensuring we maintain incredible value across our products and continue to invest in the services and experiences they know and love."
Sky, which also owns Now Broadband, will extend the same mid-contract price increases to its Now Broadband customers as well.
If you're on a broadband and mobile social tariff, you won't see an increase to your bills because Sky and Now has frozen its tariffs.
It comes after Sky announced that all out-of-contract mobile customer will see their monthly bill rise by £1.50 next month.
According to the latest data from Ofcom, 37% of all pay monthly mobile customers are out of contract.
Given that Sky Mobile has approximately three million customers, it is estimated that up to one million customers could see their bills increase.
However, customers who are still within their contract term will not experience any change in their bills.
INFLATION-LINKED PRICE HIKES
TELECOM firms have come under fire for above-inflation mid-contract price rises on fixed contracts for the past four years.
Due to clauses in contracts, providers can impose annual rises, usually in April.
The hikes are tied to either the Consumer Price Index or Retail Price Index inflation rate, which has soared during the cost-of-living crisis.
It means millions of customers faced hikes of up to 8.8% this year — adding as much as £50 to bills.
Firms argue that they need to be able to increase prices to keep up with rising costs.
But consumer experts argue that a fixed contract should live up to its name — and stay fixed.
What about other broadband and TV providers?
BT and EE broadband customers will also see their bills rise from March 31.
Those who took out a deal before April 11 last year will have their contracts hiked by 6.4%.
Meanwhile, those who signed up a deal from April 11 will see prices hiked by a flat fee of £3.
Three broadband customers who agreed a new deal before September 8 will see bills rise by 6.4%.
Those who signed up for one after this date will see theirs hiked by a flat £2.
Vodafone broadband customers will see their bills go up by January's CPI inflation rate plus 3.9% if they took out a deal before July 2.
Anyone who took one out after this date will see theirs go up by £3.
Plusnet is hiking the price of its broadband deals from March 31.
If you took out a contract before July 11 last year you'll see it go up by the December CPI measure of inflation plus 3.9%, so 6.4%.
Anyone who took out a contract after July will see their deals go up by £3 from the end of March.
TalkTalk is hiking prices for internet customers on April 1.
If you took out a deal before August 12, 2024, you'll see it rise by the December CPI measure of inflation plus 3.9% - 6.4% again.
If you signed up for a contract from August 12, your monthly charge will rise by £3.
Community Fibre customers will see their prices hiked on April 1.
Those who took out a deal before November 5 will see it rise by the January CPI measure of inflation plus 2.9%.
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Those who agreed on a contract from November 5 onwards will see prices hiked by £2.
CUT YOUR TELECOM COSTS
SWITCHING contracts is one of the single best ways to save money on your mobile, broadband and TV bills.
But if you can't switch mid-contract without facing a penalty, you'd be best to hold off until it's up for renewal.
But don't just switch contracts because the price is cheaper than what you're currently paying.
Take a look at your minutes and texts, as well as your data usage, to find out which deal is best for you.
For example, if you're a heavy internet user, it's worth finding a deal that accommodates this so you don't have to spend extra on bundles or add-ons each month.
In the weeks before your contract is up, use comparison sites to familiarise yourself with what deals are available.
It's a known fact that new customers always get the best deals.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, allowances and provider.
This should make it easier to decide whether to renew your contract or move to another provider.
However, if you don't want to switch and are happy with the service you're getting under your current provider - haggle for a better deal.
You can still make significant savings by renewing your contract rather than rolling on to the tariff you're given after your deal.
If you need to speak to a company on the phone, be sure to catch them at the right time.
Make some time to negotiate with your provider in the morning.
This way, you have a better chance of being the first customer through on the phone, and the rep won't have worked tirelessly through previous calls which may have affected their stress levels.
It pays to be polite when getting through to someone on the phone, as representatives are less inclined to help rude or aggressive customers.
Knowing what other offers are on the market can help you to make a case for yourself to your provider.
If your provider won't haggle, you can always threaten to leave.
Companies don't want to lose customers and may come up with a last-minute offer to keep you.
It's also worth investigating social tariffs. These deals have been created for people who are receiving certain benefits.
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