Plusnet home phone and broadband customers will be hit with price hikes from 2 September, although affected customers can leave penalty free as a result.

The telecoms provider is currently emailing and writing to customers to let them know that the price of line rental and home phone packages are increasing, as well as some early termination charges.

The biggest increase for existing customers is monthly line rental, although new and renewing customers taking out line rental saver – where you get a cheaper deal by paying upfront for the whole year rather than paying monthly – will see prices increase by £30/year.

It will take the price from £155.88/year (equivalent of £12.99/month) to £185.88/year (equivalent to £15.49/month), meaning customers will only save £18/year compared to the new monthly line rental price of £16.99/month (203.88/year).

Here's what's changing:

Package and call prices – what's changing?
Monthly line rental at £15.95 (i) +£1.04 £16.99
Monthly line rental at £15.99 (i) +£1 £16.99
Line Rental Saver +£30 £185.88/year (equivalent to £15.49/month)
Evening and Weekend calls package +£1 £3
Anytime calls package +£1 £6
Anytime International calls package +50p £7.50
Postage & Packaging cost for Wi-Fi router/YouView Box (ii) +£1 £6.99 (one-off cost, not per month)
(i) There are two different monthly line rental prices – current new customers pay £15.95 whereas those on older line rental products pay £15.99. (ii) The price for sending a YouView+ box will remain at £7.99. Broadband package prices are not changing but if you're a broadband customer paying line rental, you'll be hit with the rises.

Martin Lewis
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Can I leave penalty free?

Customers in contract can leave penalty free as a result of the changes, they just need to contact Plusnet within 30 days of receiving the email or letter to give it 14 days' notice.

Out of contract customers who switch to another provider can leave penalty free, but if they end their line rental without switching, they may be charged a fee.

Plusnet home phone and broadband customers will be hit with price hikes from 2 September.

'Even we have to raise our prices from time to time'

A Plusnet spokesperson says: "We're really proud that our customers are so happy with Plusnet that we lead the market when it comes to customer satisfaction – and we want to make sure that they keep on getting this award-winning service.

"We're always striving to be the best by continually investing in our products and services and we now have even more people, all based in the UK, to provide support online or on the phone.  We've continued to invest in our network and this year alone have doubled our capacity. But even we have to raise our prices from time to time."