BT has announced a price increase of almost 7% for millions of households signed up to its landline and broadband services.

The company, which supplies 9.5m households said landline charges will rise by £1 a month, to almost £18, while the cost of the popular Anytime calls package is set to jump 50p a month to £7.95.

The company’s broadband customers will see an across the board hike of just under 7%. BT said the cost to making a call to UK landlines and 0870 numbers will go up from 9.58p a minute to 10.24p. Set up fees will be rising by the same amount, meaning a one minute call from a BT landline will soon costs a minimum of 27p. Broadband customers will see prices rise by just under 7%.



Letters are being sent to customers from this weekend advising them of the increases, which will apply to all bills from 20 September. For many the size of the hike will come as a shock – the latest retail prices index published in June was just 1% – but not a surprise. Telecoms and paid TV charges across the sector have risen in recent years as the big telecoms firms have pushed through increases.

In the autumn of 2014 BT raised prices by a similar 6.5%, and was followed by its rivals. It has already announced it is to start charging £5 a month for its previously free sports channels.

John Petter, chief executive of BT Consumer, defended the hikes. “BT is investing more than ever to bring our customers the best deals across bundles of line, broadband and TV,” he said. “We have spent billions rolling out superfast fibre broadband to more than 75 per cent of the UK. We realise that customers never welcome price rises, but we have ensured that low-income customers avoid price rises.”

He said the company had introduced a double data offer for broadband customers who sign another contract and free calls to BT mobiles included in calls packages. “Unlike Sky, we still offer a discounted line rental option in Line Rental Saver, and still include 0845 and 0870 calls in our inclusive packages unlike TalkTalk,” he said.

A spokesman for the company admitted that the discounted teaser prices being offered to customers switching to BT would remain unchanged. BT is locked in a fierce three way battle for customers with Sky and TalkTalk, and cheap headline deals, not available to existing customers are seen as major weapon in that fight.

BT said customers who were part way through a contract could leave for a rival provider without penalty provided they did so within 30 days of receiving the price hike letter.