Broadband deals as speed or price rises for the first time in four years

Broadband deals as speed or price rises for the first time in four years

The price of getting a decent broadband deal in the UK has risen for the first time in four years. Average broadband packages now cost £20 a month – up by 5p to £19.79 – as households in the UK splash out an average of £38 a month. Prices were left frozen between 2010 and 2012 while the price of mobile phones was also kept at the same level.

But now the cost of accessing the internet has started to increase, with Vodafone increasing the price of its £16 a month plan for broadband and phone calls. The cost of getting a decent broadband deal in the UK has risen for the first time in four years Although it remains cheaper than the cheapest deals available in 2015, which would have cost consumers £40 per month, the monthly fee for Vodafone has risen from £15.80 to £16.

Today's survey by Which? Money shows that the cheapest broadband deals include BT's Full House bundle which comes with full fibre and unlimited fibre, with charges of £21.50 per month. This package with six million homes is being forced to cut its services as Ofcom, the communications watchdog, ordered a wholesale price cap of £7.50 a month on broadband contracts, warning that standard tariffs could go up to up to £20 if the price cap is not introduced.

Ofcom believes the price of broadband is the most common complaint to its complaints team, and has also revealed that 21 per cent of UK homes have been unable to access the internet in the last two months. The average household with a broadband deal can now expect to spend almost £4,000 in a lifetime, Which? says. This is despite the cost of broadband falling by 0.4 per cent in the last year, according to the Office for National Statistics. The survey found that there were now 190 broadband deals on the market for those with a 5Mbps connection

In September, Ofcom launched a taskforce to investigate the current broadband market. It has advised customers to shop around and for providers to be clearer about their plans.

Ofcom says it plans to publish its final verdict next summer and is likely to announce what action it will take in 2018. Mark Todd, managing director of broadband comparison site Broadband Choices, says: 'Today's survey clearly shows that broadband costs are rising in real terms for UK consumers. The cheapest broadband deals include BT's Full House bundle which comes with full fibre and unlimited fibre, with charges of £21.50 per month

'For those who are concerned about losing their fixed-line connection altogether to upgrade to the faster but more expensive fibre broadband, there's still some opportunity to shift to superfast and gain a great deal of internet at a fraction of the price.'

Vodafone says its pricing is set by Ofcom, adding that it remains the cheapest mobile phone provider in the UK. A Vodafone spokesman said: 'The telecoms industry continues to evolve. Technology is evolving at a fast pace.

'The role of the service provider is changing – our customers are looking to us to provide a mobile service that keeps pace with that demand. Our simple packages are on offer at the lowest possible prices and have increased in line with inflation every year since 2014.' Ofcom figures show the average price of mobile phone deals has risen by nearly 10 per cent over the past year to £29.84.

Andy Benditt, director of competition policy at Ofcom, says: 'While it's encouraging that the average price of mobile phone deals has been falling, we are aware that consumers continue to pay more than they need to, as the total cost is increasing every year.

'The price of mobile phone contracts remains highly regulated. This is in order to safeguard that people get a good deal – including the right to break a contract and switch to a cheaper, better deal. Consumers also have the right to cancel their contracts without penalty at the end of a fixed term. These rules will help ensure consumers get the right deal, and do not end up paying more than they need to for their mobile phones.'

A Vodafone spokesman said its pricing is set by Ofcom, adding that it remains the cheapest mobile phone provider in the UK Takeaway deliveries and children's TV licences are going up as Ofcom introduces a raft of price rises. Charges to renew school passes for children and young people will soar on Sunday, as Ofcom begins to raise charges for a raft of public services.

Companies will be required to add a tax of up to 1.5 per cent on most annual bus, tram, train and ferry passes. School passes for children aged between six and 18 will cost an extra 40p on average – and more in rural areas.

The changes follow a campaign by the Family and Childcare Trust (FCT), which called for a freeze on school passes. Ofcom, which regulates the school transport market, is asking local authorities to consider how they can contribute to a review into the cost of transport for disadvantaged pupils. Meanwhile, childcare will become more expensive. Childcare provider Oxfordshire Caring Families will see its charges rise by 13.3 per cent, adding up to £31 a week for each child on its service. The average charge for childcare in England was £1,100 a year for two children, according to the Childcare and Early Years Foundation.

These increases will go ahead despite high-profile warnings by John Humphrys last month that families are facing a 'soft' income tax assault. The Children's Society has warned of a 'devastating' increase in charges for childminders, who will have to pay a new tariff of 2.6 per cent to cover the cost of their Ofsted inspection. The cost of a whole-school swimming club will go up from £50 to £74 – up 21 per cent – while archery costs will increase from £7.80 to £8.20. Charges to renew library books for under 16s will rise from £1.70 to £1.87. The cost of a number plate renewal will rise by 1p to 70p, while a parking