Broadband: Price

Lord Sikka Excerpts

Thursday 2nd February 2023 Lords Chamber

Asked by

[Lord Sikka]

To ask His Majesty’s Government what plans they have, if any, to prevent internet providers from increasing the price of broadband connections by up to 3.9 per cent above the Consumer Price Index measure of inflation.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, this is clearly a difficult time for households across the country that are struggling to pay their bills as a result of the global rise in the cost of living. While operators are continuing to invest in gigabit-capable services, the UK benefits from some of the cheapest retail pricing of broadband in Europe, with only around 4% of a typical household’s monthly budget going on telecommunications services. However, we understand the challenges many families are facing at the moment, so we are calling on operators to consider carefully the need for above-inflation price increases and the impact they may have on people across the country.

[Lord Sikka (Lab)]

My Lords, there is absolutely no justification for the inflation-busting 14% price rise for broadband. BT, EE, PlusNet, Shell Energy, TalkTalk and Vodafone are acting in unison; they have trapped millions of people into 18- to 24-month contracts and are forcing them to pay 14% more, mid-term. Those wanting to leave are being forced to pay a £200 exit fee. I ask the Minister, first, to ban mid-term contract price hikes and, secondly, to change the law so that customers can exit free from any broadband contract longer than 12 months.

[Lord Parkinson of Whitley Bay (Con)]

The Government believe it is important that consumers are fully aware of the clauses in their contracts so that they are empowered to make informed decisions, but we also are mindful of the impact on families at this time. That is why my right honourable friend the Secretary of State earlier this month met chief executives from major broadband and mobile providers and asked them to consider very carefully the need to make above-inflation price increases at this moment. Households struggling to afford telecoms services should speak to their provider. Social tariffs are available, as we heard in a Question earlier this week, but also, since last July, providers have committed to support any customers struggling to pay their bills.