BT is set to change its approach to mid-contract price hikes, with new customers facing an annual increase of £4. Starting from tomorrow, July 31, 2025, any fresh sign-ups for broadband packages from BT, EE or Plusnet will see a £4 rise on March 31, 2026, and another £4 hike on March 31, 2027.

This update coincides with the week Ofcom confirmed that BT had compensated customers with £18 million due to failing to provide sufficient contract information. Previously, the annual price rises were pegged at £3, meaning the new £4 increase marks a significant 33.3 percent jump. This development was initially revealed by ISPreview.

A BT Consumer spokesperson expressed their support for Ofcom's transparency initiative to Express.co.uk, saying: "We are very supportive of Ofcom's requirement to show upfront pounds and pence charges," adding, "EE was the first provider to introduce this pricing model, offering EE customers a predictable long-term view of their contract terms. Our pricing approach is designed to be clear for our customers."

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However, it's worth noting that BT's move towards clearer long-term pricing isn't entirely voluntary. It comes as a direct result of new regulations imposed by UK regulator Ofcom, which now apply to all internet and phone service providers, reports the Express.

Earlier in the year, Ofcom revised its guidelines for broadband and mobile providers over mid-contract price increases. The updated rules mandate providers to clearly inform customers about the exact amount – in pounds and pence – their contract prices will go up, including the specific timing of these changes, when advertising their products.

Mid-contract price hikes have been a thorn in the side of many Brits for years, but it turns out they weren't always made crystal clear to customers, leading to unexpected and unwelcome surprises on their bills.

ISPreview published what it says, citing BT, are the exact amount BT prices will rise annually with contracts taken out on or after July 31, 2025, and stated by exactly how much depending on what product is purchased:

• Mobile
  • Flex Pay airtime plan +£2.50
  • Sim only +£2.50
  • Bundled handset and airtime plans +£4
  • Mobile broadband dongles – £1.50
  • Connected devices including Laptops, Tablets, Smartwatches +£1.50 per month
• Broadband (including hubs that use a 4G/5G sim) +£4 per month
• Out of bundle services will also increase by 5% on 31st March each year

It's understood these changes apply to BT, EE and Plusnet plans. “We continue to invest in our business, building on 11 years as the best network to better serve our customers with a reliable and quality connection as we roll out the fastest speed technology to 30m homes by the end of the decade,” the BT spokesperson said. “We’re focused on providing value and customer satisfaction, making new technologies available to our customers such as 5G standalone and WiFi 7.”