MILLIONS of broadband customers could see their bills rise next year.
Virgin Media O2 will change the way it charges customers in 2024.
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The service provider has said costs will rise in line with the Retail Price Index (RPI) rate of inflation.
On top of that, prices will also go up an additional 3.9% from next year.
Bills will remain the same up until 2024 so you won’t see your bill change until then.
The new figures will be based on January’s RPI figure.
Virgin has been writing to customers to let them know of the changes since earlier this year.
A Virgin Media spokesperson said: “The introduction of inflation-linked price changes, which comes into effect in 2024 when RPI is projected to be lower than it is today, will give customers clarity and certainty about what to expect from their bills while fuelling the investment required both now and in future.
“We have clearly communicated these changes directly to our customers.”
Inflation is a measure of how the price of goods and services has changed over the past year.
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In August, inflation fell to 6.8% in the year to July, according to the Office of National Statistics (ONS).
The CPI measure of inflation fell from 7.9% in June, the slowest rate drop since February 2022.
It means that prices are still rising but at a slower rate.
How can I save money on my broadband and mobile contracts?
Switching contracts is one of the single best ways to save money on your broadband 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.
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, speed and provider.
This should make it easier to decide whether to renew your contract or move to another provider.
However, if you do not 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.
You could save up to £210 a year on your bills by haggling alone.
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 broadband packages and discounts have been created for people who are receiving certain benefits.
They’re often available to those on income support, universal credit, or disability allowance.
Around 4.2million households are eligible for these cheaper tariffs but only 55,000 are making use of them.
Prices start from £12 a month, so ask your provider what’s on offer.
Can I cancel my contract early?
It’s important to know how cancellations work and the rules surrounding them if you’re not happy with your service.
With most firms, you can usually only cancel penalty-free if you’re outside of your contract minimum term, which is normally the first 12 to 24 months.
After that, you have the option to switch elsewhere.
But because Now Broadband doesn’t include much detail on price rises within its contracts, customers have a right to leave early without facing a penalty.
If you’re unhappy with the price hikes and wish to leave, you’ll need to tell Now within 31 days of receiving notification of the price increase to avoid being charged.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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