April will be a tough month financially for millions of UK households as a swathe of charges are due to kick in as the new financial year starts.
Despite some extra cash filtering through thanks to upratings to benefits, State Pension and National Minimum Wage, there are several major price hikes coming at the same time. Along with energy bills, water bills, stamp duty charges and stamp prices, broadband and mobile phone bills are also going up next month. The majority of customers who took out a broadband or mobile phone contract on or before April 10, 2024 will face a 6.4% increase from April, based on the inflation rate last December and an additional charge.
Most major phone, broadband and pay TV companies hike their prices every March or April, meaning the hikes typically fall in the middle of people’s contracts, and these increases are usually linked to inflation figures. But not all mobile networks have mid-contract price rises as some offer fixed price tariffs, while others promise to freeze rates for a set period.
While most mobile phone customers will see their prices go up from April, customers of Sky Mobile, Lyca Mobile, Lebara and GiffGaff won’t face a price hike from April as these networks currently have price freezes in place for 2025.
Sky Mobile
Sky Mobile is only raising prices for customers who are out of contract by £1.50 per month, effective from February 14, 2025, but those who are in contract and home phone only users won’t face a price hike from April.
Lyca Mobile
Lyca Mobile has promised not to raise its prices until at least 2026, so customers can expect the price of their bills to remain the same this year.
Lebara
Lebara isn’t raising prices for its SIM-only plans from April this year. The firm says it is committed to keeping prices fixed for 2025 and hasn’t increased its prices since 2020.
GiffGaff
GiffGaff customers on 18-month contracts taken out before the end of 2025 won’t face mid-contract price rises.
New rules from regulator Ofcom means companies must now be upfront about mid-contract rises by telling customers in pounds and pence about any price hikes included in their contract, rather than using percentages or inflation measures.
Ofcom said the change is to help prevent the “nasty surprises” of inflation-based hikes and means phone, broadband and pay TV providers are banned from linking price increases to future rates of inflation, which often include an extra percentage increase on top.
The changes require future price hikes to be set out “prominently and transparently” in pounds and pence at the point of sale, but they still allow for annual mid-contract increases by a fixed amount.
So for new customers, or those renewing or upgrading, firms must tell you the exact rises that are coming in pounds and pence. For existing customers in their minimum contract term, price rises will be determined by what was in your contract when you signed up, which in most cases will be the inflation rate plus an extra percentage charge.
