Many mobile network providers tempt us with the lure of cheaper tariffs and the discounts seem to grow for longer multi-year contracts. However, if you read the terms and conditions of your mobile contract, you might well have noticed that the supplier adds a clause that allows them to increase their prices of products and services in line with the Consumer Price Index (CPI) rate of inflation, plus 3.9%. This year many mobile users will be seeing mid-contract price rises due to the EE yearly price increase.
Over the past number of years, inflation was in the 1-2% range, so the effect on your mobile bill was minimal. However with our record-breaking inflation in 2022 ending the year at 10.5% (coincidentally) when EE work out their price increases. This means that from the 31st of March 2023, EE customers will see a 14.4% price increase on their bills. Or on average, a £52 increase in their bills each year. And if you are a 2-person home with both your mobile networks and internet with EE, this could be an increase of £17 a month (£204 a year).
Because of sustained record levels of inflation, those of us with mobile network contracts and not just EE customers, are likely to see significant price increases. Below we look into this issue a little bit further and assess what we can do to offset any potential price increase.
Viewer/Reader Tip: Sean on my YouTube channel noted that there is a period of time in March, a “window” between the announcement of the increase and implementation, where the price increase does not apply to new contracts.
After a bit of research, I understand that for any new EE contract starting from 1st March, the expected price increase will not apply until the next increase is announced next year.
The way to avoid the increases can be achieved by starting a new 12-month sim only contract in March and then starting a new contract each year on the best possible tariff.
What is the Consumer Price Index (CPI)?
The Consumer Price Index (CPI) is a measure of the average change in prices over time. In short, it tracks inflation from one year to the next. The CPI rate is published in the UK by the Office for National Statistics monthly. It is also used to adjust certain financial metrics, such as state pension payments, which are tied to the cost of living.
The Consumer Price Index (CPI) is a measure of the average change in prices over time. In short, it tracks inflation from one year to the next. The CPI rate is published in the UK by the Office for National Statistics monthly.
As inflation is a huge topic of interest at the minute you will see this reported widely in the media, but more information is available directly from the ONS at https://www.ons.gov.uk/
What other prices are increasing? – Avoid the Sky TV & Broadband price increase
Want to achieve financial independence?
You could spend the next 13 years learning about personal finance and putting your knowledge into action. Or you could take my FREE 10 day mini course and weekly emails. I’ll show you exactly how to become financially independent. My only question is, whats stopping you?
What can I do to offset the EE price increase?
Switch network provider
If your mobile contract with EE is coming to an end in advance or around the time of the price increase, it may make sense to switch providers to a new network. The process for doing this in 2023 is incredibly easy and results in little to no loss of service during the switch. Many mobile network providers offer fantastic deals for new customers and you can save hundreds of pounds per year by switching.
Check out which providers do not raise their prices mid-contract
The majority of mobile network providers do increase their prices annually in line with CPI or RPI (retail price index). However, Tesco Mobile guarantees in their “Tariff Promise” that your price will not increase during your contract.
Review your contract
Are you paying for more data than you need? Checking your monthly or annual usage stats may allow you to downgrade your mobile contract to a lesser tariff. Personally, I never use all of my monthly data allowances and because any left rolls over to the following month, I always have a huge excess. When it comes time for my next contract review, I will be considering this.
Check for other benefits
Since Brexit, major benefits such as fee-free roaming across Europe have disappeared from the benefits a number of mobile providers offer. Legacy contracts may still offer this and so it’s mindful to check that if you do switch providers you are getting a like-for-like service.
On a recent trip to France, I flew in via Geneva. On arrival, I received a number of Whatsapp Messages and within 45 minutes I accumulated a mobile bill of £28 on data alone.
Some mobile providers such as o2 offer benefits such as cinema tickets or discounts on gigs. If you use these provider-linked benefits, it is important to weigh these up before committing to a new network.
What EE products and services are affected?
Unless you are on a legacy price plan (you have been with EE since before they added this to their T&Cs), you will likely see the 14.4% increase on your contract, out-of-bundle and add-on charges.
All EE home broadband customers will be affected by the 14.4% price increase.
Can I cancel my EE contract because of the price rise?
Whether or not you can cancel your EE contract comes down to the current status of your contract with them. For the most part, however, you will be unable to cancel your EE contract without penalty during the minimum term. The exceptions to this are explained below.
- You have the legal right to cancel the contract within the first 30 days without having to pay a fee.
- If you are beyond the minimum agreed term on your EE contract are free to leave EE without penalty.
EE prices are going up and many other mobile providers will also be increasing their prices in 2023 and beyond. What is staggering is that these will be double-digit percentage increases and will result in a sizeable bump for many customers. There are ways to mitigate this as long as you make a plan in advance and review your current service level. Do not be afraid of switching providers as this is no longer a lengthy or detailed process.
For more tips on saving money on your everyday spending head over to the Save Money category and we cover a series of topics on this issue.
Will I be affected by the EE price rise?
EE has announced that it will increase price plans by 14.4 per cent. This will be applied to almost all mobile customers except for those on historic plans and to all home broadband customers.
Why is EE raising prices?
As part of the contract you signed when taking your mobile tariff, EE and other major mobile networks include a term and condition that allows them to increase their contracted rates by CPI (Consumer Price Index) +3.9%. Mobile networks proclaim that the price rises allow them to meet rising costs and invest further in their networks.
Are EE prices going up?
The EE yearly price increase is in the news currently as mobile users across the UK are reporting significant price rises to their mobile bills from this April. This price rise is affecting most EE mobile and all EE home broadband customers.