THOUSANDS of broadband customers face higher bills from this week in the latest blow to household finances.
Now is increasing the price of its broadband tariffs for the first time since its launch in 2018.
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The move is expected to affect thousands of customers but Sky, which owns the brand, wouldn’t tell us the exact number.
The average customer will see their bill increase by £42 a year – which works out to £3.50 more per month.
The hike in prices will take effect from Wednesday.
A statement on the Now website said: “As you might know, many other providers are raising their prices, and we’ll be making some changes.
“From July 5, 2023, the prices of our broadband membership plans will be going up by £3.50.
“You’ll see the price change reflected in your bill on or after July 5.
“If you’re on an offer, you’ll continue to enjoy a discounted price until your offer end date, but your payments will increase by £3.50 a month.”
It comes after millions of BT, Sky, TalkTalk and Virgin Media customers saw their bills rise by up to 14.4% earlier this year.
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But some customers won’t be affected by the price rises.
If you’re signed up to a Now Broadband Basics tariff because you claim Universal Credit or other benefits, you won’t see your prices change.
The tariff cost will remain fixed at £20 a month to help those on lower incomes.
But if you are affected by the price hike you may be able to cancel your contract early.
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.
How can I save money on my broadband and mobile contracts?
If you think your bills are too high and want to drive them down, the first thing to do is find out what the cheapest deal on the market is.
You can use this rate as a bargaining tool to get a better offer from your provider.
Get in contact with your provider to see if they can match this rate – if not, you might want to switch instead.
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.
If you’re not happy with the new charge and want to switch, make sure you know if you’re in or out of contract.
This is because if you’re in contract, you could be charged an exit fee and it could be costly.
It’s always worth asking your provider if they’ll offer you something cheaper anyway so do give them a call even if you’re in contract.
If not, make a note of the date your contract ends and tally up other deals that you could switch to.
If your household is on a low income 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 £12.50 a month, so ask your provider what’s on offer.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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