BT announces bill hikes of up to 6.5% for phone and broadband customers

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BT is raising its prices by up to 6.5 per cent for millions of customers, the telecoms giant has announced.

Line rental for direct debit customers will increase by 6.25 per cent to £16.99 (up by £1), from 1 December, while the pence per minute rate for calls to UK landlines and 0870 numbers will go up to 9.58p – a rise of 6.44 per cent.

Calls to the speaking clock will go up by 2.37p to 38.97p and a call return will increase from 19.9p to 21.19p, while the set-up charge for landline calls will also go up by almost a penny.

Those on the Unlimited Anytime Calls plan will see their bills increase by 45p.

Broadband bills are also facing some rises of up to 6.49 per cent, though the firm said its "high profile" introductory offers will be unaffected.

Citizens Advice Chief Executive Gillian Guy said: “Inflation-busting price rises are bad news for cash-strapped households.

“In the past 12 months, Citizens Advice has dealt with more than 62,000 telephone and broadband debt problems - including more than 40,000 where our clients have needed help managing repayments.

“Switching supplier is one way of avoiding extra costs, but with our clients reporting broadband cancellation fees of up to £625 when they switch, many will find themselves locked into deals which they want to get out of.”

MoneySavingExpert.com also said that it’s possible to “slice in half” the costs for home phone and broadband.

BT said that it is introducing “the UK’s cheapest line and broadband bundle for low-income customers”.

Consumer Chief Executive John Petter added: “BT is sensitive to the tough economic times and we've taken care to make sure that low-income customers avoid price increases.

“We've added extra money-saving options for low-income customers and for customers who only want a phone line for calls.”

BT’s announcement follows the bill hikes by TalkTalk and Sky, where in March, TalkTalk said its customers will pay as much as £42 a year more for their broadband and TV packages, the Guardian reports.

In June, Sky TV said it would be increasing its prices from 1 September, in which they will rise by up to 10 per cent.