Martin Lewis issues warning to millions of people who have contracts with Virgin Media, Vodafone, O2, BT and EE

Martin Lewis has issued a warning to millions of Brits who pay for broadband or phone contracts in the UK.

Taking to his The Martin Lewis Money Show Live programme on ITV1 and ITVX, the financial journalist explained what is facing many of us as we settle into the new year and look ahead to the next 11 months.

But in the build up to the show, which aired on Tuesday (14 January), Lewis took to Twitter to claim that '10,000,000s of Brits are being ripped off by overpaying on energy, mobile, broadband, water bills and more'.

"It's BillBuster time," he said, with the show focusing on how many of us in the UK can cut our outgoings by just being a little more clued up about the lay of the land.

Broadband and phone contract warning

"Depending on your provider and when your contract started, your bill could rise by the rate of inflation plus a percentage on top, or by a specified amount in pounds and pence," the Money Saving Expert team writes over on the site.

It is all to do with deals over broadband and phones allowing mid-contract price increases. This is something Lewis has been campaigning against for years.

Now, for the first time, new rules by industry regulator Ofcom mean your provider has to tell you how much more you will pay rather than give you a percentage increase linked to inflation; which doesn't give you a realistic interpretation of the situation.

But the issue, Lewis and his team explain, is that the new rule from Ofcom doesn't apply to contracts taken out before providers implemented these new terms, meaning millions of people still face inflation-linked rises.

"For example, BT, EE, Plusnet, and Vodafone customers on older contracts will see price rises based on inflation figures published on Wednesday, 15 January," MSE says.

Martin Lewis and MSE have warned Brits (Channel 4)

Price rises per company

BT, EE and Plusnet

The trio are increasing their mobile Sim-only and Flex Pay airtime deals by £1.50 a month, as well as £2 a month more for TV users, £3 for broadband, and £4 for bundles.

This will start from 31 March, with the price increase 6.4 percent if you joined before 9 April, 2024.

O2

The company upping its pay-monthly and Sim-only mobile packages by £1.80 a month. There's also a 75 pence a month increase for smartwatch, mobile broadband and tablet deals. All of these will increase from 1 April.

Sky

Sky is yet to issue price increase information for broadband and TV customers or home phone customers.

Last year, bills rose by 6.7 percent.

Out of contract Sky customers will pay £1.50 more a month from 14 February but there will be no change for those still contracted.

Broadband costs are going up for many (Getty Stock Images)

Vodafone

For customers joining after 2 July last year, Vodafone will up 'basic' mobile phone plans by £1 a month. It'll be £1.80 a month for other pay-monthly deals and £3 a month for broadband. All of these will go up from 1 April.

If you joined Vodafone before 2 July last year, bills will increase by 6.4 percent from 1 April.

Virgin Media

For customers who joined Virgin Media for broadband, landline or TV after 9 January this year, you'll pay £3.50 a month extra from 1 April.

For those who joined before, your price rise is to be confirmed.

Three

Three customers who joined or upgraded after 8 September last year will pay £1 per month more for 4GB or less mobile data plans. It'll go up by £1.25 a month for deals between 5GB and 99GB, and £1.50 a month for more than 99GB.

Broadband deals will cost £2 more every month, with all these prices going up from 1 April.

If you joined Three between 1 November 2022 and 7 September 2024, you'll pay 6.4 percent more from 1 April. It's 4.5 percent if you joined between 29 October 2020 and 31 October 2022.

The cost of your phone contract could be increasing (Getty Stock Images)

Money Saving Expert warning

"Ofcom's new rules mean an end to the common practice of linking price rises to future, as-yet-unknown rates of inflation, often with an extra percentage point rise on top," MSE says.

"Instead, firms that had these price rises baked into their contracts will need to set out any future price increases 'prominently and transparently' in pounds and pence before you take out any new contract.

"While these new regulations ban price hikes directly tied to inflation, they still allow for annual mid-contract increases by a fixed amount – which means prices could still rise by more than inflation."