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BT Price Increase Announced for 1.3m Customers

Woman opening bills after BT price increase

BT customers could be in for an unwelcome surprise when they open their bills in September, as the telecoms giant is set to move over one million of its users onto a new call plan - the fifth major BT price increase in the last four years.

The new Unlimited Minutes plan will offer BT customers free landline and mobile calls, though will come at an extra £54 a year on top of what they are already paying.

The price hike will affect 1.3 million landline-only and broadband customers, many of whom are currently on older plans that don’t include mobile calls. These customers currently pay at least £10.50 a month and will be moved on to a package costing £15 a month, with the maximum increase coming in at £4.50 a month (£54 a year).

The new BT price increase does not affect line rental, which is currently usually around £20.20 a month and looks to stay the same for now.

What can I do to avoid the BT price increase?

BT has said it will contact those affected by post in advance of the price hike, which comes into effect on 1st September 2020. Customers are free to leave their contract without a penalty fee in the 30 days after receiving their letter informing them of the price increase. If you miss this window, early termination charges could cost £8.25 for each month remaining of the contract, depending on the package you’re signed up to.

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However, if you’re already out of contract with BT or on a rolling contract, you’re free to switch to an alternative provider, with no early termination fee. As many don’t use their landline anymore, you may even find it cheaper to switch to a broadband-only deal.

Although once dominant in the telecoms market, BT is among the most expensive providers in the UK today and has found itself losing customers to smaller, cheaper rivals in recent years, such as Origin Broadband and POP Telecom. These providers are often able to offer the same services at a much lower cost, as they don’t have the same huge overheads to cover as BT, Virgin Media or Sky.

Illustration of a call centre headset

Here at Selectra, we can help you make an informed choice about your provider, as we specialise in comparing telecoms, broadband and mobile packages from across the market. Speak to one of our friendly expert advisors to find out about the best cheap deals in your area by calling us on 020 3966 4709 or get a free callback to switch today.

If you’re a loyal BT customer who sees no reason to move away, you may be able to haggle and get a better deal by contacting BT directly. If not, you’ll at least be able to find out when your contract ends and any termination charge you may be required to pay.

Further BT price hikes

In addition to moving customers over to the Unlimited Minutes package, the following 2020 BT price increases have also been announced in its latest consumer price guide:

  • Standard broadband prices to increase by £2.50 per month.
  • Landline call costs to increase by 2p to 15p per minute.
  • Mobile call costs to increase 0.5p to 9p per minute.
  • International call costs to increase by 5p per minute across bands A, B and C.
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