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Plusnet to hike prices for 100,000s of customers next month

Plusnet is to hit 100,000s of broadband, home phone and mobile customers with a 4.6% price hike from 30 June. The rise means some broadband customers could pay up to £18/yr more - but as the increase is written into its T&Cs, you can't cancel penalty-free unless you're outside your contract's minimum term.

We've full info below on what's happening, who's affected and what you can do about it. Also see how to find cheap broadband deals and our Broadband Unbundled and Cheap Mobile Finder tools if you're now thinking of switching. 

How Plusnet's prices are going up

Most Plusnet customers will see some part of their bill rise from 30 June, but whether or not you're on one of Plusnet's 'fixed-price' contracts is key:

  • If you're NOT on a fixed-price contract, most prices will rise by 4.6% from 30 June. This includes the cost of line rental, broadband, call charges, call plans and mobile plans. Plusnet hasn't given a detailed breakdown of how much more this means customers will pay, but it has said the average broadband and line rental increase will be less than £18/yr - obviously this means some may see a bigger rise.

  • If you ARE on a fixed price contract, only call charges will rise by 4.6% from 30 June. So long as you're within the minimum term of a fixed price contract, other prices won't rise. 

  • Whichever contract you're on, if you took BT Sport out after 9 December 2020 it'll also go up by 4.6%. Again, this applies from 30 June. Customers who took out BT Sport before this date won't see their price rise. 

Plusnet hasn't given us an exact breakdown but it's understood 100,000s of its customers will see some form of price rise. 

Plusnet price increases are based on inflation

Plusnet's 30 June price increase is calculated by adding 3.9% to March's Consumer Prices Index (CPI) rate of inflation, as published in April. As inflation was 0.7% in March, it means prices will rise by 4.6% in total.

After this year, price rises will take effect on or after 1 March every year from March 2022. This will be calculated by adding 3.9% to December's CPI rate (which will be announced in January).

Within your minimum contract term? You CAN'T cancel penalty-free

Often when broadband firms hike prices, you're able to leave your contract penalty-free. But Plusnet says that doesn't apply in this case as the potential price rise has been written into its terms and conditions across the board.

Plusnet says anyone who took out a new contract since 7 October 2020 agreed to a CPI + 3.9% price rise, while out of contract customers were moved onto the same terms in March 2021.

Anyone who signed up before 7 October 2020 but was still in contract in March 2021 won't see prices rise while they're still in contract. When their contract ends, they'll be moved onto the new terms and the the out of contract price at the time. They'll then see prices rise at the next scheduled date.

If you're unhappy with the price rise, note down when your contract's due to end and start looking for new deals as soon as it's nearly up - or, if you want to stay, try to haggle your price down. However, bear in mind most telecoms providers increase prices fairly regularly, so don't leave in anger if you're already on a cheap deal because other providers may well up costs too. 

Out of contract? You're free to leave, so check if you can switch and save

If you're outside of your minimum contract term you can leave at any point penalty-free - and given the best broadband and mobile deals tend to be for newbies, there's a good chance you're overpaying anyway. Benchmark prices elsewhere and switch if you can get a cheaper deal.

See full help in our How to find cheap broadband deals guide and use our Broadband Unbundled and Cheap Mobile Finder tools to see what other deals are out there.

Alternatively, if you're willing to stay you can try haggling and see if Plusnet will match or beat a deal you've found elsewhere. See our Haggle with Sky, the AA and more guide for more help.

What does Plusnet say?

A Plusnet spokesperson said: “Network usage is doubling as our customers rely on us for connectivity more than ever before, and this small annual increase reflects the investment needed to support growing demand."

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