Sky has just announced that their TV and Broadband prices are due to increase by 8.1% this April, putting the price of their broadband and TV up by an average of £5.60 per month or £67 per year. This comes on the back of an average increase of £3.60 in 2022. Booooo.
In this article, we’ll look at who will be affected and what you can do to avoid the Sky price increase.
Why is Sky raising the cost of TV and Broadband?
From the 16th of February, Sky has begun notifying customers across the country what the increases to their monthly and annual TV and broadband packages are going to be. Some customers have reported increases up to 14%, so while Sky is noting the average increase being 8.1%, some customers will experience a much larger increase.
As part of your contract with Sky, the price of the TV and Broadband services you purchase can increase by the CPI +3.9% once per year. This is usually announced in February and begins in April. This year, with the rate of inflation being over 10%, Sky could have increased its rate by 14.4%. Instead, they have chosen to do so at a much lower rate.
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 does the price rise mean for you?
Below I’ve outlined what your Sky TV & Broadband bills might look like come April. Probably the most shocking to me is that some people will be spending nearly £1,700 a year on their Sky TV. In case you’re wondering, £129.50 is the full bells and whistles all-channels and add-ons package. Christ the night.
|Current monthly cost||8.1% Price increase||New monthly cost||New annual price|
It’s important to note that out of all the TV & Broadband providers in the UK, the increase Sky is implementing is among the lowest. But increases are happening across the board and many of us will be looking to avoid these where at all possible.
What customers are affected by the Sky price increase?
Almost all Sky customers in the UK are affected by the increase. The exceptions to this are as follows:
- Sky social tariff customers on the “Broadband Basics” plan
- Customers who started contracts with Sky for Sky Glass and Sky Stream services on or after 18th October 2022.
Are other TV and broadband providers increasing their prices?
Sky is not alone in increasing its subscription charges. All other major providers have also confirmed their price rises.
- EE – increasing by 14.4% (10.5% CPI + 3.9%)
- BT – increasing by 14.4% (10.5% CPI + 3.9%)
- Plusnet – increasing by 14.4% (10.5% CPI + 3.9%)
- Vodafone – increasing by 14.4% (10.5% CPI + 3.9%)
- TalkTalk – increasing by 14.2% (10.5% CPI + 3.7%)
- Shell Energy – increasing by 13.5% (10.5% CPI + 3%)
- Virgin Media – increasing by an average of 13.8%
It’s important to note that this is now the second year that high inflation is causing a huge spike in costs linked to the Consumer Price Index or the Retail Price Index (RPI). We are now paying inflation on the inflation.
What about my Sky mobile bill? Will it increase?
These price rises for Sky TV and Broadband are independent of Sky Mobile. Recently it was also announced that Sky Mobile bills will be increasing by an average of 9%. Other mobile network providers are also issuing increases with EE also increasing its prices by 14.1%.
Can I cancel my Sky TV and broadband contract if they increase the price?
The Sky price increase is affecting the majority of its customers, and many of them will be asking how to avoid the price increase if they possibly can. Some people have been asking if they can cancel their Sky TV & Broadband contract without a penalty charge. Whether or not you can primarily come down to the current status of your contract with Sky and we explain this in detail below.
I am out of contract with Sky
If your fixed-term contract has expired then you are out of contract and you will be free to leave Sky if you wish. There will be no penalty for doing so, but you will just need to give Sky 31 days’ notice. You can contact Sky by calling 0333 759 1230 or visiting the Sky cancellation website where you can reach Sky Experts on live chat for free between 8:30am and 9pm, seven days a week.
If you value your Sky TV & Broadband and want to keep these services, this might be a great time to negotiate a better deal. Or you can choose to move to another provider.
I have a current contract with Sky Television
If you have just started your contract with Sky in the last 31 days you have the right to cancel your order for TV services and any related equipment without penalty.
For those still within the minimum term of their contract you will be unable to leave penalty-free. Sky has a very specific condition in its contract that means you do not have the right to cancel the contract because of the price increase.
I have a current contract with Sky Broadband for home and phone
It’s important to note that TV services are treated differently from internet and phone services. If you are still within the minimum term of your broadband contract, then you should be able to cancel penalty-free.
A word of warning
When Sky create their home phone, broadband and TV packages for customers, many of the charges are discounted because of the linked services. If you cancel one, you may find your discounts for the others removed. Check with Sky before cancelling and be mindful of this, as you could end up paying more for the services you want to keep.
How can I avoid the Sky price increases?
If you’ve had enough of the Sky TV and Broadband price rises, now would be a good time to consider what you can do to avoid this increase and any future ones. Below I’ve put together a list of things you might want to consider. Firstly we’ll look at the options if you’re still with Sky and then those options if you’re willing to leave.
Audit your subscriptions
Many of us are paying for channels we don’t watch or need. Did you subscribe to kids’ channels for your grandchildren or sports channels for your son who has flown the nest? Now is the time to review and audit your Sky subscriptions to make sure you are only paying for the channels you need and want.
Ask for a discount
This was drummed into myself and my brothers by our mum, as children. If you don’t ask you don’t get and thankfully Sky is one of the best companies to negotiate with.
It pays to do your groundwork first to ensure you get the best deal possible. Understand what the deals are elsewhere so that you are realistic in your expectations of price reductions.
Ask for extras
The retention team in Sky may not be able to give the massive discounts you want, but they are generally more flexible with providing upgrades or additions to your subscription free of charge or at greatly reduced prices.
Look for other discounted add-ons
This sounds completely contrary to everything I’ve just written above, but having a Sky TV & Broadband subscription can also allow you to have discounted add-ons such as a Netflix subscription. My parents ended up saving £15 per month on their Netflix subscription on a recent call with Sky, by adding, albeit a reduced Netflix subscription to their Sky bill.
Getting Freeview / Freesat without Sky
If after considering all of the above you decide that Sky TV is no longer a viable option for you, then you might have to consider removing it from your home.
Firstly you need to give consideration to the TV you watch. Do you regularly watch channels that are exclusively on Sky TV? You may find that the majority of television you watch is on the normal free-to-view channels such as BBC, Channel 4 DMAX or Tiny Pop for example. If this is the case then the switch away from Sky TV may not actually be as big a deal as you think.
Using Digital subscription services only
In conjunction with Freeview or stand-alone, many people across the UK are choosing to ditch Sky TV in favour of digital-only services such as Netflix or Disney Plus. The feasibility of this does come down to your viewing habits, but if you find you only watch certain channels and digital on-demand programmes/films, you may find that Sky is no longer a necessity.