On the third of December this year, BT is to increases charges for residential customers by 5% - the third time in fourteen months.
UK landline calls are to go up to 7.95p per minute, and line rental is also set to rise. If you are paying line rental by direct debit the new charge will be £14.60 a month.
Family Finances
This change comes as a further blow to households who already have to find extra finances to pay for ever increasing gas and electricity bills, as well as cope with rising redundancies.
"We are disappointed that BT is raising its prices on the heels of significant energy price hikes just a month ago," said Michael Phillips, product director at price comparison website Homephonechoices.co.uk.
"While BT's price increases of 5% or less may be in line with inflation, it will prove very unpopular with households who are already feeling the pinch.
"This marks the 10th price rise from a major provider this year alone and it is inevitable that others will further add to this total."
BT said that many of its customers had actually seen their call costs fall because they had moved on to specific packages.
"A report from Ofcom shows the UK has lower prices than the USA, Spain, Germany, France and Italy. The UK market is highly competitive," a BT spokesman said. He added that many of BT's prices were lower than those charged by other providers.
Escape Your BT Contract
Most of BT's contracts tie you their service for 12 months, and if you leave before the time is up there is a fee of £2 for every month remaining. This is just for the basic package and the fee may be higher for other packages.
However, there is a clause in BT's T&Cs that enables you to leave without charge if they increase their prices. You must, however, inform BT within 10 days of being informed of the price increase.
BT's terms state: "If BTPS (British Telecom Payment Services) makes a change to your material disadvantage, you may terminate your BT Telephony Services, BT Total Broadband or BT Vision agreement.
"You will not then have to pay a charge, provided you let BT know you want to end the agreement within 10 days of having been informed of the change."
A BT spokesman confirms the company will abide by its conditions.
He adds: "If a customer feels these changes will put them at a significant disadvantage, we have provisions in our contract that address that situation. Customers should get in touch with us to discuss their situation."
How BT Notify You
BT won't allow you to cancel your contract without charge until you are officially notified of the price increase, but as soon as you are notified you must call BT withing 10 days and let them know.
Receive bills by post? You'll get details about the price changes in the BT Update magazine between September and November.
Opted out of marketing mail? You'll get a letter with your bill between September and October.
Billed online? You will be emailed in October and November.
If you are struggling with debt due to increasing bills, contact us now on 0800 988 7701 for no obligation advice.
