Savings deal: Broadband supplier freezes prices amid rising inflation | Personal Finance | Finance

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Cuckoo has announced it has frozen the price of its broadband contracts to the same level as 2020 and will continue to do so for the next year. This offers households a sizable savings deal as other broadband providers hike their price rates in line with inflation. Notably, eight of the UK’s legacy broadband providers have raised their prices by between 8.2 and 9.3 percent despite wholesale costs remaining the same over the last two decades.

Households are currently experiencing a rise in the cost of living which is being exacerbated by soaring inflation and energy bills.

Currently, inflation in the UK is at 9.9 percent. While this is a slight drop from the previous month, prices for everyday goods and services are being hiked as a result.

However, this has not stopped broadband suppliers from raising their prices above the rate of inflation.

Recent research shows that broadband providers will be in receipt of a windfall of £1.4billion amid this era of rising inflation.

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James Fredrickson, Hyperoptic’s director of Policy, explained: “Inflation-busting mid-contract price rises are simply not fair.

“Most people don’t know it’s going to happen or have no idea how much more they’re going to have to pay.

“We’ve called on Ofcom and others to introduce tighter rules that will force operators to be transparent about when they’re going to raise prices, and customers should have the right to switch provider, without charge, if they’re hit by such an increase.”

Despite this, broadband providers like Cuckoo are freezing their prices over the next 12 months to give consumers an affordable option which is not being offered elsewhere in the market.

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Alex Fitzgerald, the broadband disruptor’s CEO, outlined why the provider has opted to support customers in this way, telling customers “we have their backs”.

Mr Fitzgerald explained: “People need to be able to plan their finances and right now everywhere they look prices are rising.

“But we want to be different and show our customers we have their backs. We won’t squeeze them when they’re already being squeezed.

“If you sign up, I guarantee that you won’t get a price rise for a year and you’ll enjoy the same prices we started charging when we launched almost three years ago.

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“We can’t say we’ll never raise prices, but we will always be honest and transparent.”

To facilitate people moving onto a better broadband deal, media regulator Ofcom introduced new rules which force suppliers to notify customers when their contract is coming to an end.

This means that consumers now have more control over moving onto a broadband deal which offers them a more favourable price, such as with Cuckoo.

The regulator found that households were able to save an average of more than £110 a year after the change.

James Mackley, Ofcom’s Economics Director, emphasised how households are able to benefit from this change to broadband rules.

Mr Mackley said: “It’s encouraging to see more people saving money after we made it easier to grab a better deal.

“This is particularly important at a time when household budgets are under heavy strain, as the potential savings available can be significant.

“So it’s worth checking if you’re out of contract, and seeing what deals are available.”



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