Millions of TalkTalk customers to be hit with price hikes
Up to four million TalkTalk customers will be hit with inflation-busting price hikes from 4 November, but you can cancel penalty free as a result.
The provider is increasing the cost of a number of packages, including line rental, from 4 November, while certain call costs will rise from 1 December. The cost of cancelling your contract early is also rising from 4 November.
Key increases include line rental rising from £17.70/month to £18.95/month; a 7% increase, and ‘Simply Broadband’ packages increasing from £7.50/month to £9/month – a massive 20% increase. We’ve detailed the full changes in the tables below.
Those on TalkTalk’s new 18-month fixed price broadband contracts, which launched on 3 October and include line rental as standard, will not see their broadband prices rise for the length of the deal, although associated charges, such as ‘Boosts’, movies, and calls are subject to any price increases.
Can I leave penalty free?
Yes. Affected customers can cancel their contract penalty free if they contact TalkTalk within 30 days of receiving notification from the provider of the price hike.
Customers will be notified of the price changes during October and November. Those who receive paper bills will get a letter through the post, while those who get e-bills will receive an email.
Why are prices rising?
A statement on TalkTalk's website says prices are rising to pay for the cost of investing in its network to increase internet speeds, free phone privacy features, and more TV content.
A spokesperson for TalkTalk adds: "While some of our prices are changing, millions of TalkTalk customers can reduce their monthly bill and pay less than they do today by switching [penalty free] to our Fixed Low Price Plans. They'll be guaranteed no broadband price hikes for 18 months - something no other provider can guarantee. And if they see a better deal from TalkTalk, they can switch and save money."
What are prices rising to?
Package prices are changing for existing customers as follows:
|Package name||Current price||Price from 4 November|
|Value line rental (12 months)||£191.16||£204.66|
|Value line rental (18 months)||£270.81||£289.93|
|Essentials Phone and Broadband/ Essentials TV||£10/month||£11.50/month|
|Plus Phone and Broadband/Plus TV||£20/month||£21.50/month|
(i)SMPF is short for Shared Metallic Path Facility. It enables TalkTalk to provide a service over the copper cable network while another provider is supplying a service on the same line. For example, you have your broadband service with TalkTalk, but your phone service from another company.
TalkTalk no longer offers Simply Broadband, Essentials, and Plus packages to new customers – these were replaced by its new fixed price plans that are inclusive of line rental.
Call prices are changing as follows:
|Package name||Current price||New prices|
|Call connection fee||17p/call||18p/call from 1 Dec|
|Out of bundle UK calls||11.5p/month||12.5p/month from 1 Dec|
|Voice Only (excluding Voice Only with weekend calls)||Various/month (i)||£10/month from 4 Nov|
(i) These are “very old plans”, which have a number of price points associated depending on when the customer signed up.
Early termination charges, which are applied when you cancel your contract before the minimum period is up, are changing as follows:
|Package name||Current price (i)||Price from 4 November (i)|
|Essentials Phone and Broadband/ Essentials TV||£15.31/month||£17.50/month|
|Plus Phone and Broadband/Plus TV||£22.97/month||£25/month|
(i) Early termination charges are calculated based on the remaining period of your contract on a daily basis. Monthly charges are listed here for ease.
An increase in the general level of prices that persists over a period of time. The inflation rate is a measure of the average change over a period, usually 12 months. If inflation is up 4%, this means the price of products and services is 4% higher than a year earlier, requiring we spend and extra 4% to buy the same things we bought 12 months ago and that any savings and investments must generate 4% (after any taxes) to keep pace with inflation. Since 2003, the Bank of England has used the consumer prices index (CPI) as its official measure of inflation (see also retail prices index).