BT and EE have announced a price rise for out-of-contract customers from March.

Last year, Ofcom introduced new rules which meant that mobile and broadband firms must give customers a ‘pounds and pence’ figure at the outset of a contract for any price rises mid-contract, or give customers 30 days to cancel instead.

Customers who signed up to deals before the new rules were still left on the old system, which usually saw a percentage based increase each year.

Now, BT says it is going to move the out-of-contract customers across to the new system of pounds and pence price increases.

It said: “We will be initiating our 2026 price change for these out of contract customers from 1st March. The date when this price change will apply will be confirmed in each customer’s price change notification. 

“To be clear these customers moving to pounds and pence terms are outside of the minimum term of their contract with us and will not be entered into a new minimum term contract. We are also not adjusting the annual price change for customers within the minimum term of their contract, something that has been heavily scrutinised recently. We will be contacting customers in the coming weeks with specific information relating to their pricing.”

Because the affected customers are no longer in contract, they will be free to move to another supplier to avoid the increase if they so wish. 

According to Broadband Genie, the change will mean an extra £4 added to customer bills.

Alex Tofts, broadband expert at Broadband Genie, said: “While the ‘pounds and pence’ flat fee may sound more straightforward, it has a disproportionate impact on customers with lower monthly bills, meaning many will actually pay more under this structure than before.

“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. While price rises may be unavoidable for many, switching can will reduce your overall monthly bill.

“We need Ofcom to revisit these regulations. Providers are taking advantage of consumers and failing to recognise the financial pressure many households are already under.”

“The only real way to protect customers is to ban these absurd mid-contract price hikes altogether. Some providers already offer fixed-price contracts, so why can’t those with the biggest customer bases do the same?”

BT, which also owns mobile firm EE, added in its message to customers: “We invest billions of pounds in our networks, our products, our services and customer support. We have won RootMetrics  UK’s Best Network 12 years in a row, achieved through continued investment and innovation in EE’s mobile network. Likewise, our full fibre broadband network offers ultra-fast gigabit speeds and ultra-reliable connections for our customers.”

It added: “We are committed to keeping our customers and the UK connected, with affordable options for their mobile and broadband services. At a time when household finances are under pressure from rising costs of living, it is vital that consumers can interact with the digital world we live in. Our commitment ensures they have access to the most reliable and innovative mobile and broadband network technology, with clear and predictable pricing and best in class customer support satisfaction.”