Virgin Media price rise confirmed at 8.8% for 2024

Virgin Media base their annual price rises on the Retail Price Index (RPI) rate of inflation published in February.

The publication of the latest RPI rate, at 4.9%, means prices for existing Virgin Media customers will be increasing by 8.8% in April 2024.

The provider has confirmed however, new customers signing up between now and April won't see their prices go up until April 2025.

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Virgin Media price rises

Prices for broadband, TV, phone and mobile from Virgin Media will be increasing by 8.8% from April 2024 for both in-contract and out of contract existing customers.

Due to a change in their contract terms, which came into effect from April 2023, customers can no longer leave their contract early without penalty when Virgin increase prices, as the rise of RPI + 3.9% is now baked in.

While the increase is less than the average rise of 13.8% the provider put up prices by last year, customers will still be paying an additional £3.08 on an average broadband bill of £35.

More examples of likely increases for customers on different Virgin Media plans based on their price today include:

However, it's worth noting Virgin Media have already confirmed customers signing up from 16th February 2024 won't see their prices increase until April 2025.

Mid-contract price rises

While the provider has only recently moved to RPI + 3.9% increases, they're not alone in putting up prices based on inflation each year.

The price rise confirmation from Virgin Media follows annual rises of 7.9% for customers with BT, EE, Plusnet, and Vodafone, 6% for customers with Shell Energy Broadband, and average increases of 6.7% for those with Sky.

However, Ofcom, the industry regulator, is also in the process of consulting on banning the practice of inflation-linked price rises, with a decision due in Spring 2024.

Should Ofcom decide to ban inflation-linked mid-contract price rises, providers like Virgin Media may well move to pounds and pence increases as the regulator has suggested. While there's no evidence Virgin will use this method, BT have already confirmed they intend to move to the pounds and pence increases from this summer.

BT have said prices will go up by £1.50 per month for mobile plans, and broadband will increase by £3 per month.

It's arguable whether this approach will really benefit customers though, as while it is more transparent and easier to understand, it also has the potential to lock in higher increases of around 10%, as a £3 annual increase on an average broadband bill of £35 amounts to an inflation figure of 4.6% (+3.9%).

A Virgin Media O2 spokesperson said, "2023 was a record year for traffic on our networks as customers used our mobile and broadband services more than ever. We are investing heavily to ensure we continue to provide the fast and reliable connectivity our customers rely on, and the amount we receive from price increases is greatly outweighed by the £5m we invest every single day to upgrade our networks and services to give customers a better overall experience.

"It's clear that we continue to offer excellent value, with customers paying less and receiving more. Recent independent analysis found that the cost of telecoms services has fallen by a fifth since 2017, while at the same time speeds and usage have increased significantly.

"We will be writing to all impacted customers directly to explain when, why and how any price changes may come into effect.".