Telecom giants BT and EE have confirmed a significant change to how they will increase prices for millions of customers, moving away from inflation-linked hikes to a fixed fee.
New 'Pounds and Pence' Structure Takes Effect
From 1 March 2026, customers who are out of contract with BT or EE will see their monthly bills rise by a flat £4. This marks a shift from the previous practice of applying annual increases based on the Consumer Price Index (CPI) rate of inflation plus an additional percentage.
The companies state this new "pounds and pence" model, which they first introduced in April 2024, provides greater transparency. They claim it allows customers to see exactly what they will pay over their contract term from the outset.
Expert Warns of Disproportionate Impact
However, industry experts have raised immediate concerns about the fairness of the flat fee increase. Alex Tofts, a broadband specialist at comparison site Broadband Genie, highlighted a critical flaw in the new system.
"While the ‘pounds and pence’ flat fee may sound more straightforward, it has a disproportionate impact on customers with lower monthly bills," Tofts explained. "This means many will actually pay more under this structure than they would have with an inflation-linked rise."
For example, a £4 increase on a basic, low-cost plan represents a much higher percentage jump than the same fixed fee on a premium package.
Calls for Action and Advice for Customers
Alex Tofts has urged affected customers to take proactive steps and called for regulatory intervention. "BT and EE customers won’t be entering into a new contract, so we advise out-of-contract customers to review their options and look for a cheaper alternative," he said.
He emphasised that switching providers remains the most effective way to combat rising costs. "While price rises may be unavoidable for many, switching can reduce your overall monthly bill."
Furthermore, Tofts has called on the industry regulator, Ofcom, to reassess its rules. "Providers are taking advantage of consumers and failing to recognise the financial pressure many households are already under," he stated. "The only real way to protect customers is to ban these absurd mid-contract price hikes altogether."
In their defence, a spokesperson for EE and BT said: "Price changes enable us to make the ongoing investments necessary to provide our customers with the best networks, leading innovations, new services and better support. This is vital at a time when consumer demand for data and service quality has never been higher."
The move is likely to spark further debate about affordability and transparency in the UK's broadband and mobile markets, as households continue to grapple with the cost of living.
