BT raising prices by double rate of inflation

Around 10 million BT customers are being told that phone and broadband bills are to rise by up to 6 per cent, in the latest blow to cash-strapped households.

BT is increasing its prices from January 5, with phone calls, line rental and broadband rising by up to 5.9 per cent – more than twice the rate of inflation, at 2.6 per cent.

The group, which recently agreed deals worth £890m to secure rights to screen Premier League football and Premiership rugby matches, said people signing up to the group’s cheapest television package Vision Essentials will see the monthly tariff increase from £4 to £5, a 25 per cent rise.

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BT is notifying customers about the bill changes from this month, meaning families are facing yet more price rise misery this winter as a raft of firms and utilities increase bills, with fears of others following suit.

SSE was the first of the big six UK energy firms to announce an increase in tariffs when it braced customers last month for a 9 per cent rise for gas and electricity from October 15.

Homeowners have also been hit as high street banking giant Santander said it is increasing its standard variable rate mortgage by 0.5 per cent0 next month.

BT’s move is the latest in a line of price increases by telecoms and TV providers. Its rival, Sky, increased some tariffs on September 1, following call charge and broadband increases by Virgin Media in April and bill rises for many TalkTalk customers since May.

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But BT said it would not raise prices on a range of services again before 2014, including its Unlimited Anytime call plan, standard line rental and calls to UK landlines.

It is hoping that the rights deals for its forthcoming sports channel will attract subscribers from rivals BSkyB and Virgin.