Now Broadband to hike prices by £42 a year – but you can leave penalty-free

If you're thinking of switching, use our Broadband Unbundled tool to compare the latest deals and see how much you could save. Most other major providers, including BT, Sky, TalkTalk and Virgin Media, have already implemented price rises of up to 14.4% for their broadband customers this year.

Now Broadband prices will rise by £3.50 a month from 5 July for most

The price increase is Now's first since launching in 2018. The provider wouldn't tell us how many customers are impacted, but the hike will affect most of its broadband and home phone customers in the UK. This includes those on its 'Brilliant Broadband', 'Fab Fibre' and 'Super Fibre' packages.

The same £3.50 a month price rise will apply regardless of which plan you're on. Those affected will see their price change on their bill from 5 July onwards.

However, the following customers WON'T see prices rise:

• Those on Now's 'Broadband Basics' plan. This is Now's social tariff for people on Universal Credit and other benefits.

  If you're on benefits, you may be able to access cheap, long-term 'social tariffs'. See our Social tariffs round-up for a full list and use our Broadband comparison tool to see how they stack up against standard deals.

• TV-only members. The prices of Now's TV packages, including 'Entertainment' and 'Cinema', are set separately and are not included in the July price rise. This means you'll only be affected if you have Now Broadband (whether on its own or with Now TV).

Want to stay with Now? Try haggling – broadband firms are some of the easiest to negotiate a discount with

In our most recent poll, three in four (75% of) broadband, home phone and TV customers who tried haggling had some success – the highest of any sector (we don't have exact figures for Now).

The coming price hike is a great opportunity to try to bag a better deal – your right to leave penalty-free can be a powerful weapon.

See our Broadband haggling guide for full help, but here are a few tips to get you started...

• Benchmark the best deal elsewhere, so you ask for a realistic discount.

• Get through to the retentions (sometimes called disconnections) department. They have the most power to slash costs, as their job is to keep you.

• Use charm and be friendly. Aggression or anger will just put their back up.

• Don't panic if they call your bluff and say they'll disconnect you.

• If they won't slash the price, see if they can include any extras, such as a boosted TV package.

If you're unhappy about the price hikes you CAN leave penalty-free

If Now won't play ball, vote with your feet. The provider has confirmed that customers affected by the price increase can leave their contracts without paying any early termination charges. If you want to cancel, you'll need to do so within 31 days of receiving Now's notification of the price increase to avoid being charged.

Remember, new customers normally have the pick of the best TV, fibre broadband and line rental deals and there are other providers out there. However, there's no point in leaving in a huff if your current deal is still the cheapest out there and bear in mind that other providers may up prices too. Check rival providers' prices using our Broadband Unbundled tool.