Vodafone price hike

JPankhurst

I took out a new 24month broadband contract with Vodafone in January based on MSE "best buy" info. It was a very good deal at £20/month but after 3 months it has suddenly  increased to £22.32/month. Speaking to their customer services this is because of RPI/CSI and their "service improvements" and happens every April. This is >10% increase, I  received no email/text advance notice of the new rate and the contract has only just started! Apparently I'm tied into the 24month deal, although I fail to understand how a 10% increase should be allowed contractually when I get penalised if I move elsewhere. Are the suppliers allowed to hike prices straight after a new contract signing? Are there limits/constraints and should this be flagged up when new deals are announced at the beginning of a new year?

Neil_Jones

Yeah that's what you agreed to unfortunately, it's been baked in for quite a few months now on most of the budget ISPs, not just Vodafone.

400ixl

It will have been very clear in the sign up process that they apply an increase in April every year. If you signed up in January then the first increase would be this April and you signed up to this, so contractually, why should they allow you to go elsewhere without penalty?

Pretty much every one of the major providers has this clause which is perfectly legal, although to different degrees. So even changing to another supplier would see you back in the same position next April.

Marvel1

It's in their T&C's - I joined up same time.

4.5 Changes to your terms, services or charges We may change your Agreement, our services, or charges at any time. We'll tell you beforehand where any change is likely to materially disadvantage you. 

For customers joining or upgrading from 2nd February 2021: Each April, your monthly plan charge will increase by an amount equal to the Consumer Price Index rate published by the Office for National Statistics in January (CPI rate) plus an additional 3.9% on top of the CPI rate. We will apply that CPI rate plus 3.9% adjustment from your April bill. In the event that the CPI rate is negative, this will be ignored but the additional 3.9% will still apply. Additional Services: Charges for additional services may change from

JPankhurst

Thanks, I'll need to be more vigilant in future. I was aware of April increases - my previous EE contract had gone from £26 to £26.15pm but was not aware that Vodafone would be such a rip off. 

QrizB

JPankhurst said:

Thanks, I'll need to be more vigilant in future. I was aware of April increases - my previous EE contract had gone from £26 to £26.15pm but was not aware that Vodafone would be such a rip off. 

EE also have an annual increase of CPI +3.9%:

https://ee.co.uk/help/help-new/billing-usage-and-top-up/price-increase/price-increase