What is Happening?
From 13 November 2023, we’re making changes to your current terms and conditions for BT Business Mobile by moving to a single annual price increase that is based on the Consumer Price Index (CPI) which is the figure published by the Office of National Statistics (ONS) as a measure of inflation.
Each year we will adjust the amount customers pay per month for our services according to the CPI % rate of inflation figure plus an additional 3.9%
The CPI % rate of inflation figure we’ll use is the December % rate of inflation published by the ONS in January of each year, and we’ll adjust monthly line rental charges by this amount, plus an additional 3.9%, on or after 1 April of the same year.
The first annual price increase based on the CPI % rate of Inflation plus 3.9% will take place on or after 1 April 2024.
For example, if the CPI % rate of inflation figure published in January 2024 is 10%, then the monthly price from 1 April 2024 will increase by 13.9% (10% + 3.9% = 13.9%), excluding VAT.
If the CPI % rate of inflation figure is negative in the relevant year, we will only increase monthly charges by 3.9%.
What this change means for you
From 1 April 2024, your bill will show a CPI % rate of inflation + 3.9% increase on the price of your monthly line rental plan.
Please note the terms and conditions for your eligible add on(s) and out of bundle charges are not changing.
What Is Consumer Price Index (CPI)?
“CPI”, is a figure published by the Office for National Statistics (ONS) as a measure of inflation. It is a reliable measure to reflect the increase in the costs to run and invest in the network and services we provide.
CPI is a measure of whether the cost of goods and services is going up or down based on average price changes from across several industries and measures inflation by taking a basket of goods (e.g., food, clothes etc.) looking at what they cost last year versus what they cost now and identifying the difference. A new index is published every month.
The “shopping baskets” of items used in compiling the various measures of consumer price inflation are reviewed annually. The items in the baskets change so that the measures are up to date and representative of consumer spending patterns.
Find out more about CPI from the Office of National Statistics
Why are we moving to CPI+?
In the telecommunications industry the Retail Price Index (RPI) has been historically used as a measure to determine annual price increases. As per the Office for National Statistics, the Consumer Price Index (CPI) is now established as "the most comprehensive measure of inflation". As such from 1 September 2020 we took the decision to introduce new terms & conditions across BT Group to utilise CPI as the primary basis for annual price rises.
What is the difference between CPI and RPI?
CPI and RPI come with different values as they are calculated using different tools. RPI includes council tax, mortgage interest payments, buildings insurance and house depreciation in addition to the items included in CPI.
The CPI calculation covers a broader section of the population in relation to RPI calculations. CPI weightings are based on household spending in the National Accounts while the RPI weightings are based on Food Survey and ONS Expenditure.
What CPI % inflation rate will we be using?
The CPI % rate of inflation figure we’ll use is the December % inflation rate published by the ONS in January of each year, which measures the average change in prices for consumers across the country, over the last 12 months. We’ll adjust monthly charges by this amount, plus an additional 3.9%, on or after 1 April of the same year.
If the CPI % rate of inflation figure is negative in the relevant year, we will only increase monthly charges by 3.9%.
If the CPI % inflation rate is negative does this mean you will decrease pricing?
No, we would recognise CPI to be 0%, so the price change would be 3.9%
Why do you add 3.9% to the underlying CPI % inflation rate?
As the UK continues to embrace Digital technologies, the demand for the Connectivity & Services that we provide is always rising. In order to maintain the quality of our network for our customers we are continually investing in it, which is a very capital-intensive activity.
The CPI element of our annual price increases enables us to continue to run our network in light of cost & wage inflation, whereas the 3.9% enables our continual investment in the UK’s digital future, the improvement of customer service and propositions and will enable us to increase social inclusion through widening our network footprint.
Can I cancel my contract because of the changes to terms and condition of contract from RPI to CPI + 3.9%?
If a subscription is out-of-contract at the time the account is notified, you can leave any time without incurring termination charges but will need to give us 30 days' notice to cancel.
Subscriptions that are in contract at the time the account is notified and decide to cancel because of the terms & conditions change, can leave without incurring termination charges but will need to let us know to request the cancellation before the change happens on 13 November 2023
If you are calling to cancel after 13 November 2023, termination charges will be incurred if you are leaving before your contract end date.
What happens if I upgrade?
If you do decide to upgrade or resign you will be advised about the annual price increase impact to your line rental price. All customers upgrading or resigning from now on will be subject to CPI % inflation rate+ 3.9% increase based on the latest terms.
Need more help?
Please contact us on 0800 121 4857 or your Account Manager if you have any query.