Shropshire money expert warns of imminent broadband and mobile price hikes

Mobile and broadband companies will be sending letters to their customers to tell them of the increases they can expect - with some warnings of hikes of more than 17 per cent.

The contracts allow companies to impose price rises.

Steve Barras, development officer of Just Credit Union, the region's not for profit savings and loans co-operative said: "Lots of families across Shropshire and Telford & Wrekin have been squeezed by the sharp increase in the cost of living.

"Sadly many will see a further increase in the coming weeks. This time people will be seeing an increase in their broadband and mobile contracts which could go up by over 17 per cent."

He added that dependent upon their terms and conditions most of the major providers can increase prices even mid-contract by the rate of inflation plus an extra amount above that.

"Most of the biggest providers use the December or the January rates of inflation for their price rise calculation and we know now these rates were around 10 per cent." said Mr Barras.

He added; "The majority of bills are likely to rise between 10 to 15 per cent, another financial blow to households who are already struggling financially. Particularly as many households may have a broadband contract and perhaps two or three mobile contracts.

"We know from our recent members survey that many people across the county are struggling with many needing to borrow to meet normal household expenditure. The good news is that many people can mitigate at least some of these rises."

The credit union says thousands of people across Shropshire are likely to be out of contract and have been automatically rolled on to a new and sometimes more expensive tariffs.

"The good news is they can leave at any point penalty-free and as the best deals tend to be offered to new customers there is a good chance they can switch to a better deal.

"We would advise people to check where they are with their contract and find out if there are there any penalties if they cancel now.

"It's then a case of shopping around for the best deal."

Mr Barras advised using comparison sites to find the best deals and make sure you are comparing like with like.

"Once you have found a great deal, swopping provider is much easier than it used to be," he added.

"It is also worth checking what you are getting within your deal and it is what you actually need, for example checking that you do need all the data that comes with a particular package or that you really do need super-fast broadband. Also be careful about the length of the new contract you are signing up to."

For those still in contract the price rises are likely to be part of the contract and in most cases, they won't be able to cancel penalty-free.

Mr Barras said: "It may be worth checking what penalty you would have to pay and does any better deal offset any penalty. However, best advice in this situation is probably to note the date the contract is due to end and shop around then.

"Finally, it’s important that people find out if they could be eligible for a social tariff. Social tariffs are discounted broadband and mobile deals for people on universal credit and other benefits.

"Currently, more than 10 major broadband providers offer social tariffs. It is however estimated that only around three per cent of those eligible have taken up these offers. Ofcom retain a list of available social tariffs along with the eligibility criteria for each of them."