Ask our Expert

How will the BT price rises affect my home phone bill?

Our Home Phone expert says...

Thank you for your question, June. I’m sure there are lots of BT customers with similar concerns about how much their line rental will cost once the prices go up on 3 December.

In 2011, there have been 11 separate price increases from home phone providers and the average line rental now costs £160 a year. This is obviously very disappointing, particularly as so many people are struggling financially in the current economic climate.

Worryingly, of all our household expenses, line rental is often the one that gets forgotten - to the point that many people don’t realise how much they’re paying. The good news is, with a simple comparison and switch, there are big savings to be made.

The guide below should help answer any questions you have about the cost of BT line rental, December’s price increase and how you might be able to cut your monthly bill.

How much does BT line rental cost?

It is true - BT (www.bt.com) will increase the price of its standard line rental from £13.90 to £14.60 on Saturday 3 December, 2011. The additional cost will apply to all new and existing BT home phone customers paying line rental in monthly instalments.

Anyone choosing to pay their line rental via BT Line Rental Saver - making a single one-off payment of £120 - will not be affected by the increase. This could be worth considering, June, as if you switch to this package and pay a year’s line rental upfront it equates to a monthly cost of just £10.

In addition, it used to be the case that BT customers received a monthly discount of £1.25 for “paperless billing” - viewing bills online rather that getting them through the post. This option is also being removed for all customers from 3 December.

Are all of BT’s prices going up?

Luckily, it is only some of BT’s home phone products that increase in price from 3 December. As well as its standard line rental, the Unlimited Anytime call plan will go up by 30p to £4.90 a month.

Also increasing are the charges for non-inclusive local and national calls and the call connection fee which applies to certain calls. However, it’s not all bad news as lots of prices remain the same after 3 December. BT has promised to freeze these prices until 2013.

Do the new prices apply to existing customers?

Yes. The price hikes announced by BT in August, to be effective from 3 December, 2011, affect both new and existing BT home phone customers. Standard line rental will increase to £14.60 a month.

Line Rental Saver - where a full year’s line rental is paid upfront - remains at £120, the equivalent of paying £10 a month. BT customers could save money on line rental by either paying for 12 months with BT in one go, or by comparing deals and switching to a new provider.

How can I get cheaper line rental?

When the time comes to renew your home phone contract, it is always worth shopping around for cheap line rental, which could help you save money by switching provider.

If you’re a BT customer and would like to stick with BT while still reducing your outgoings, Line Rental Saver could be a good option. This means purchasing a full year’s line rental in a single upfront payment of £120 - the equivalent of paying just £10 a month, which compares quite favourably with other providers.

Find out more about Line Rental Saver here.

For anyone looking to switch provider, the easiest way to save money on line rental is to compare prices and choose the deal which best suits your needs. But remember, if you're tied to a 12 or 18-month contract, you may be faced with exit fees if you want to switch before it ends.

Line rental is only one part off your home phone package. It is equally important to compare call charges and other costs you may incur. It makes sense to only ever pay for what you need.

What is the cheapest UK line rental?

The cheapest line rental in the UK is currently provided by Primus Saver, in an exclusive offer only available through Homephonechoices.co.uk, but there are other providers you may want to consider. The table below shows some of the cheapest line rental deals on the market.

Click the name of any package for more details, or the “Go” button to switch now.

How can I reduce my phone bills?

There are several ways to reduce your phone bills, and many of them don’t involve you switching provider. Here are Homephonechoices.co.uk’s top tips for cutting your phone bills:

Pay by direct debit - Nearly all providers discourage payments other than direct debit, meaning you could save up to £5 per month by switching to direct debit payments. If direct debit isn't an option for you, then the Post Office (www.postoffice.co.uk) accepts payment from its home phone customers by various means with no additional charge.

Go for paperless billing - Some providers offer useful savings if you receive your statements online rather than by post and you'll also be doing your bit for the environment. BT used to give customers a monthly discount of £1.25 when they opted-in to paperless billing. From December 3, 2011, this saving is no longer available to any BT customers.

Read the small print - If you're tied to a 12 or 18-month contract, you may be faced with exit fees if you want to switch before the contract term ends. Check any fees and switch to a better deal if it makes financial sense to move.

Pay upfront - Some providers will offer a considerable discount on your annual line rental bill if you pay upfront in one go. For example, BT's Line Rental Saver offers an annual saving of over £55 a year compared to the standard monthly payments of £14.60 from 3 December.

Compare - Check your current package against the latest deals through an Ofcom-accredited price comparison site like Homephonechoices.co.uk. You may be able to save money by either switching package or provider. But remember, you may have to pay exit fees if you’re tied to a 12 or 18-month contract, so you should only switch to a better deal if it makes financial sense to do so.

Ask us a question

If you have a general switching or provider query please email us at ourexpert@homephonechoices.co.uk