Post Office broadband and phone customers to be hit with inflation-busting price hikes

9 March 2018
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Post Office broadband and home phone customers will be hit with inflation-busting price rises from 1 May.

The provider has confirmed it’s increasing the price of several broadband and home phone packages, as well as a number of call costs.  

Some packages and call plans will see inflation-busting price rises of up to 20%, although affected customers can cancel penalty free – see below for more on this. Letters will be sent to affected customers from 1 March.

Moneywise has asked the Post Office how many customers are affected but the provider says it won't share customer numbers.

What prices are changing?

Below are the key price changes although other call costs will also increase from 1 May – see the Post Office website for more information.  

ProductCurrent pricePrice from 1 MayPercentage increase
Broadband Essential£25/mth£27/mth8%
Unlimited Broadband£28/mth£29/mth3.6%
Unlimited Fibre Broadband£36/mth£37/mth2.7%
Unlimited Fibre Broadband Plus£41/mth£42/mth2.4%
Anytime Calls Plan£8/mth£9/mth12.5%
International Saver Plan£4/mth£5/mth25%
Mobile Saver 100 Plan£2.50/mth£3/mth20%
Mobile Saver 500 Plan£7.50/mth£8/mth6.6%
Call connection18p/call21p/call16.6%
UK landline calls12p/min13p/min8.3%
UK standard mobile calls14p/min16p/min14%

Source: Moneywise using Post Office data on its website

One point to note is that the Post Office says anyone who signed up to a fixed price broadband promotional offer will continue to pay the same price. For example, some people get the Post Office’s Unlimited Broadband package for a promotional price of £19 – a £9 discount on the usual £28 per month. From 1 May, the package price will increase to £29 per month but those on the discounted deal will continue to pay £19 per month for the length of their deal – making a £10 discount.

Can I cancel my contract penalty free?

The Post Office says it will waive its usual early termination charges if you cancel within 30 days of receiving your price change notification letter.

Why is the Post Office increasing prices?

A Post Office spokesperson told Moneywise: “Changing our packages and pricing is never a decision we take lightly, but we’re committed to bringing our customers the best value products and services – and for our home phone only customers, we currently offer some of the lowest line rental and cheapest call rates in the market. We combine that with advantages like in-person, cash bill payments through our branch network; longer talk time in the evenings and at weekends; and free caller display and voicemail service.
 
“When it comes to our broadband service, we are one of the only providers to offer our customers a fixed low price plan with the guarantee that their broadband monthly charge won’t change over the length of the customer’s contract. That means that both new and existing customers can opt for a low price contract between 12 and 24 month, and feel confident in the knowledge that there won’t be any changes to their monthly broadband charge for the duration of that contract.”

Are other providers increasing prices?

Here’s a round-up of the latest telecoms price increases:

  • BT raised some of its landline broadband and BT Sport prices from 7 January 2018.
  • EE upped its broadband prices from 16 January 2018.
  • Sky is hiking broadband, home phone and TV costs from 1 April 2018.
  • TalkTalk upped some of its call rates and legacy broadband and mobile packages from 1 August 2017.
  • Virgin Media hit broadband, phone and TV customers will price hikes from 1 November 2017.

Comments

In reply to by anonymous_stub (not verified)

A real pain in the arse having to keep changing isp to save money. Worse than moving house and they all give equally bad service.

In reply to by anonymous_stub (not verified)

Let’s all vote with our feet by leaving the Post Office as a broadband and phone provider. The top management are brilliant at reducing demand by a greedy pricing policy, consistent with giving the ceo an eye-watering salary/benefits/pension package. There are many better deals available with both phone and broadband providers. Long may these snouts digest in their own bodily fluids!

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