My broadband provider has raised its prices, do I have to pay?

Broadband providers are allowed to increase prices, but you may be able to leave your contract without paying a penalty.
Which? Team

Key Information

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Can broadband providers hike prices?

Broadband providers can raise their prices on a yearly basis, but won't be able to introduce inflation-based mid-contract price rises for new contracts from 17 January 2025.

Which? previously called for a ban on inflation-based mid-contract price rises. Following our campaign, Ofcom announced in July 2024 that it will ban these price hikes.

Companies can still introduce price rises each year, but they will need to detail these price hikes clearly in pounds and pence.

This will afford you greater clarity over the price you'll pay throughout your contract, and allow you to compare deals more easily.

For contracts taken out before January 2025, broadband providers can still introduce inflation-based price rises by the rate of the Retail Price Index (RPI) or Consumer Price Index (CPI).

How broadband contracts work

When you sign up to a broadband contract, you’ll be given a monthly price which will need to be paid during the contract.

This usually lasts for 18 or 24 months, and you’re committing to paying the company for that period in return for its services.

However, from time to time broadband providers raise their prices and you may not agree with, or want to pay, the higher bill. 

In some cases you can leave a contract early, without paying a penalty, but this all depends on the provider’s terms and conditions and what kind of contract you have.

I’m out of contract, can I leave?

If you aren’t within the minimum term of your broadband contract, you’re free to leave whenever you like. 

You may be happy with your provider but as you’re not tied into a contract, you can choose to stay with it if you’re happy with a higher price or you can switch to a different provider.

We always recommend keeping an eye on other providers and offers anyway as loyalty rarely pays when it comes to broadband services.

If you are looking to switch, our best broadband providers guide is worth a read.

I’m still in a contract, can I leave?

The rules change if you’re still in the minimum term of your broadband contract.

Traditionally, if a provider increased its prices, and you didn’t know about the increase before (it wasn’t written into the terms and conditions of your contract), then you should be able to leave without paying a penalty. 

You can cancel your contract and switch to any other provider, as long as you do so within 30 days of being told about the price increase.

But, if your broadband provider has warned you about rises in their terms and conditions you won’t be able to leave penalty-free if you’re still locked into a contract. If you do want to leave, you'll have to pay an exit fee.

In the case of contracts from 17 January 2025, or if a provider has already implemented clear price rises (in pounds and pence) when you take out a contract, you're unlikely to be able to exit that contract without paying a fee.

What are the costs of cancelling a broadband contract?

If you want to cancel and you're still in your minimum contract, and the provider told you about the price hike in the terms and conditions, you may have to pay an early termination fee. 

These fees can be very high. For example, if you sign up to an 18 month contract and want to cancel in the second month, you might have to pay 16 months' worth of fees.

Therefore think carefully before cancelling to decide if it makes financial sense or not. It may be worth staying with the provider until your contract has ended and then switching.