Urgent bill warning to anyone buying a new phone in January sales – do you face an extra surprise cost?

MILLIONS of mobile customers are being warned to brace for a huge bill hike later this year.

So, if you’re looking to buy a new phone in the January sales, it might be best to hold off in the meantime.

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This is because telecom providers are expected to announce their plans for this year’s price hikes after the next CPI inflation announcement on January 17.

Providers usually increase their prices annually based on the rate of inflation plus an extra 3.9%.

The latest inflation rate for November 2023 sits at 3.9%, according to the Office for National Statistics (ONS).

But providers are already expected to generate more than £400 million through price increases in April.

Most customers will see their bills increase from April 1, though some will have already seen a rise.

In response to this, consumer group Which? has called on telecom companies to stop “unconscionable” plans to raise broadband and mobile prices in April.

Which? has written an open letter to major broadband and mobile providers, including BT, EE, O2, and PlusNet, urging them to stop any “unfair and unpredictable” price increases.

Ofcom, the Government’s regulatory body, has proposed a ban on this practice, citing “substantial consumer harm” that it could cause.

Which? has said that customers face a “lose-lose choice” between increases that could leave them struggling or facing exit fees, putting them at the “mercy” of providers.

Chancellor Jeremy Hunt recently promised to write to the Competition and Markets Authority (CMA) after financial journalist Martin Lewis challenged him to prevent mid-April contract increases.

Mr Lewis argued that “baking in above-inflation rises is terrible for consumers”.

Mr Hunt said: “If you write to me with the evidence that you’ve got of that, evidence from your viewers, let me write to the Competition and Markets Authority who are the body that look into these things independently of politicians, let’s get to the bottom of it.”

Which? And Mr Lewis are now expected to submit a letter to Mr Hunt in the next seven days.

While this April’s price hike remains inevitable, there are still ways to reduce your mobile costs.

How can I cut my mobile costs?

The simplest way to save more of your hard-earned cash is by switching your supplier when your contract expires.

If you’re outside the minimum term of your contract then you won’t need to pay a cancellation fee – and you might be able to find a cheaper deal elsewhere.

If you’re still in your contract period, you might be charged an exit fee.

But don’t just switch contracts because the price is cheaper than what you’re currently paying.

Take a look at how much speed you need for broadband or how many minutes and texts, as well as how much data you’re using on your mobile, to find out which deal is best for you.

Use comparison websites, such as MoneySupermarket and Uswitch to compare the best tariffs and phone prices.

If you’re happy with your provider then it might be worth using your research to haggle a better deal too.

It’s also worth checking out some providers which don’t charge mid-contract price rises.

These include Voxi, Lebara, Giffgaff, Smarty, Lyca Mobile and Asda Mobile.

This post first appeared on thesun.co.uk