**BT Announces Annual Broadband Price Hike for New Customers Amidst Regulatory Changes**
Broadband provider BT has confirmed that some customers will see new annual price increases, starting today, following a shift in the industry’s approach to mid-contract price adjustments. From 31 July 2025, any new customers signing up for BT, EE, or Plusnet broadband packages will face a £4 annual rise to their bills from 31 March 2026, with a further £4 increase scheduled for 31 March 2027.
This change reflects a significant escalation from the previous annual increase of £3, representing a roughly 33% jump. The move coincides with ongoing scrutiny by UK communications regulator Ofcom, which recently highlighted shortfalls in how BT and other providers have communicated contract terms to customers. Notably, Ofcom reported this week that BT had paid out £18 million in compensation after failing to provide adequate information about contract terms.
A spokesperson for BT Consumer said that the company is fully supportive of Ofcom’s new transparency regulations, which require providers to state, in pounds and pence, how much a customer’s bills will increase and exactly when these increases will take effect. “We are supportive of Ofcom’s requirement to show upfront charges,” the spokesperson stated, noting that EE had led the introduction of this model to give customers greater predictability and clarity over their contracts.
However, it is important to point out that this shift to clearer pricing is being driven by regulatory intervention, not voluntary action on BT’s part. The updated Ofcom rules mandate all UK broadband and mobile companies to offer precise information regarding future price hikes at the point of sale—an effort to curb customer confusion and unexpected bill increases.
Mid-contract price rises have long been a source of frustration among UK broadband users, as customers often encountered surprise increases that had not been fully explained when signing up for services. Ofcom’s aim is to ensure greater transparency and reduce the likelihood of unexpected costs for consumers across the country.
Breaking down the figures published by ISPreview, new customers signing up from today will experience differing annual increases depending on their package. For BT mobile Flex Pay airtime plans and SIM-only deals, annual rises are set at £2.50, while bundled handset and airtime users will pay £4 more each year. Mobile broadband dongle customers will actually see a smaller rise of £1.50, as will those buying connected devices such as laptops, tablets, or smartwatches.
For standard broadband packages—including those using hubs with 4G or 5G SIMs—the annual increase will be £4 per month. Out-of-bundle services are similarly set to rise, with a 5% increase on 31 March each year for affected customers.
The changes will apply across BT’s group brands—BT, EE, and Plusnet—as the company seeks to reassure customers about ongoing investment in network infrastructure. “We continue to invest in our business, building on 11 years as the best network to better serve our customers with reliable and quality connections as we roll out the fastest speed technology to 30 million homes by the end of the decade,” the spokesperson added. Innovations such as 5G standalone services and WiFi 7 are also being cited as areas of progress aimed at enhancing customer experience.
While BT says it is committed to delivering value alongside these price rises, some consumer groups have expressed concerns that the increases could place further pressure on households already grappling with the rising cost of living. Nonetheless, industry analysts note that the regulatory drive towards transparency may ultimately help customers make more informed choices when selecting broadband providers.
As Ofcom and broadband companies continue to work towards clearer communication, customers are being urged to check the exact terms of any new contracts to avoid being caught off guard by scheduled price hikes in the years ahead.