BT Group PLC (LSE:BT.A)’s expected hike to broadband and mobile rates from 1 April 2023 will contribute to a huge squeeze on households as bills rise across the board.
A household bringing in £50,000 could be £700 worse off per year from next month, according to the Centre for Economics and Business Research (CEBR), as broadband, medical and water costs rise, alongside tax.
“Our estimates suggest that monthly disposable incomes are expected to drop by £29, £57 and £78 respectively” for people earning £12,570, £50,270 and £125,140, CEBR economist Pushpin Singh said, equivalent to £348, £684 and £936 per year.
BT will raise prices 14.4%, in line with December’s consumer price index plus 3.9%, meaning customers would pay £58 more per year, Which? found last week.
Virgin Media O2, Three, TalkTalk, and Vodafone Group PLC (LSE:VOD) may also raise prices, though the latter two have said the most vulnerable customers will automatically be shielded from these.
Higher prescription and dental prices, alongside an average council tax rise of £99 will also add to pressures and follow record food price inflation of 17.5% in March.
“An expected easing in inflation […] come July” is set to provide some relief, Singh added, as energy bills are predicted to fall.