The what, why and how of our new pricing
On 31st March 2022 we'll be making some changes to our prices in line with your terms and conditions. Here's everything you need to know.
Why our prices are changing?
These pricing changes will see us invest even more into giving you the broadband and line rental services you deserve.
So what prices are changing?
On 31st March 2022 we’re increasing our monthly price for business broadband, line rental, call plans and call charges in line with the Consumer Price Index (CPI) rate published by the Office for National Statistics in January of this year plus 3.9%.
We recently contacted you to confirm these price increases. This notice should set out the price increases to your broadband, line rental and any call plan you may have. Further details on call charge increases are set out below.
What's CPI?
The Consumer Price Index (CPI) rate is a figure released by the Office for National Statistics. The CPI is used for purposes such as uprating pensions, wages and benefits and can help in the understanding of inflation on family budgets. CPI measures the average price change as a percentage for a basket of 700 different goods and services which households buy.
How will you calculate my price increases?
We'll take the CPI percentage rate published by the Office for National Statistics in January of this year which is 5.4% and add an extra 3.9%. So the total rate we'll apply is 9.3%.
Here's an example to show how the price rise works.
Let's say:
You have Unlimited Business Fibre Broadband and line rental and the price of your package is made up of:
- Unlimited Business Fibre Broadband - £12.50 per month
- Line rental - £17.50 per month
Your total monthly price up to 30th March 2022 = £30.00
The CPI index rate in Jan 2022 is 5.4%.
Calculations below are shown on the ex VAT prices:
Monthly price up to 30th March 2022 = £30.00
Monthly price from 31st March 2022 = £32.79
Worked out as follows:
Unlimited Fibre Broadband £12.50 per month plus 9.3% (the 5.4% CPI rate published in Jan 2022 plus 3.9%) = £12.50 x 9.3% = £1.17
£12.50 + £1.17 = £13.67 per month
Line rental £17.50 per month plus 9.3% (the 5.4% CPI rate published in Jan 2022 plus 3.9%)
= £17.50 x 9.3% = £1.63
£17.50+ £1.63 = £19.13 per month
Total monthly price: £13.67 + £19.13 = £32.79
If you receive a discount on your services, the increase will be applied to this amount. You can check your current package details by signing into My Account.
See our CPI Plus 3.9% Guide for details.
What about changes to call charges?
On 31st March we are increasing the charges for UK calls, international calls and call set up fees by 9.3%. Further details are set out below.
UK call rates
These are the standard rates for calls to UK landlines (01, 02 and 03) and UK mobiles. UK rates include calls to landlines in the Channel Islands and calls from Northern Ireland to landlines in the Republic of Ireland.
Calls to 01, 02, 03 numbers
The current rate of 3.00 pence per minute will increase to 3.28 pence per minute
Call set up fee
For any calls which include a set-up fee, the new rate will apply. The current rate of 5.00 pence will increase to 5.46 pence.
Calls to UK mobiles
The current rate of 9.95 pence per minute will increase to 10.88 pence per minute.
International call rates
Increases will apply to all standard call rates to international landline and mobile numbers. Here's a couple of examples of how the 9.3% increase will be applied to international calls.
Canada - current rate of 4.00 pence per minute for day time calls to mobile numbers will increase to 4.37 pence per minute
USA - current rate of 3.00 pence per minute for day time calls to landline numbers will increase to 3.28 pence per minute
Details of all current rates per country can be found at call rates to international numbers.
How does pro rata billing work for the price changes?
Sounds a bit formal, but in no-nonsense terms, pro rata is simply a charge for part of the amount of your bill. Unless your bill date happens to be on the 30th each month, your first bill after the 31st March 2022 will be a little different. You'll pay an additional pro rata charge to cover the number of days between the price increase and your bill.
To show how this works, let's say as an example, your bill date is the 15th of each month.
Your bill will be will split into two separate charges:
From the 16th March to 30th March you’ll be charged at your current rate
Then from the 31st March to the 15th April you’ll be charged at the new CPI plus 3.9% price increase rate.
The charges are shown as two separate lines on your bill for each product affected by the new price increases. Don’t worry – you’re not being double charged!
You can find out more in our pro rata billing FAQ
Will there be any changes to early termination charges?
Yes. Early termination charges will also be subject to price changes each March based on the Consumer Price Index (CPI) rate of inflation published by the Office for National Statistics in January plus 3.9% Please see our Price Guide for details on how we calculate early termination charges.
Can I cancel my contract when you increase the price by CPI Plus 3.9% from March 2022?
If we're only putting up the price of broadband, line rental, call plans and call charges in line with the CPI plus 3.9% and you choose to cancel because of that, you'll still need to pay any early termination charges if you're still within your minimum term. This is because annual CPI price rises plus 3.9% will be included in your terms.
If we put up our prices for any other reason though, you might be able to end your contract early without paying any charges.
You can check your package details by signing into My Account.
If you need any help please just give our team a call.
Can I renew or upgrade my broadband package?
Yes. You don’t need to wait until your contract ends, you can change or upgrade your broadband package anytime you like. Just call us on 0800 028 0282 and we’ll help you find the best deal.
All new packages include CPI plus 3.9% price terms and conditions.
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