Pound sterling currency growth concept with up arrow and money bag
New research from Ipsos UK, which interviewed a representative sample of 993 adults across Great Britain during early March 2025, has claimed that Brits are increasingly cynical about the motivations of utility companies and broadband/phone providers when setting annual price increases – with over 40% believing these industries are mainly raising prices to boost profits.
Firstly, it’s important to highlight that not all communication providers play the mid-contract hikes game. A good number of ISPs, particularly smaller players and many alternative networks, often adopt much more static pricing that rarely changes or at least won’t change during your minimum contract term. But sadly, some providers, particularly most of the largest players, do engage in mid-contract hikes, which often rise above the level of annual inflation.
Providers that engage in the mid-contract hikes game often argue, somewhat correctly, that they are not immune to many of the same cost increases that have hit consumers in recent years. In particular, many of them face rising costs due to high interest rates / inflation, higher charges from suppliers, electricity, leases and the cost of adding all sorts of new services (e.g. FTTP builds) and catering for new regulations etc.
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However, it may also be reasonable to say that the desire for greater profit is a factor too, which certainly seems to be the view of many respondents to the new Ipsos UK survey. When it comes to assigning blame for price rises, Britons are cynical about the motivations of utility companies and broadband/phone providers. Just over two in five (43% and 42% respectively) believe these industries are mainly raising prices to boost profits, rather than simply covering their own increased costs due to inflation.
Ipsos-UK-broadband-pricing-survey-results
Consumer who are hit by mid-contract hikes could alternatively try haggling for a lower price when the notification drops (Retentions – Tips for Cutting Your Broadband Bill), although your mileage may vary (big providers will be more receptive). Meanwhile, those on benefits (Universal Credit etc.) also have the option of taking a cheaper Social Tariff – see our Quick Guide to UK Social Tariffs.
In addition, Ofcom’s new One Touch Switching (OTS) system has also made it much quicker and easier to switch providers, but just make sure you aren’t going to be penalised by any early contract termination or exit fees before doing so (this should not be an issue if you’re already out of contract). On the other hand, a growing number of ISPs do offer contract buyouts (welcome credits) to those who wish to exit their existing contracts early.
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