Other companies have similar arrangements. TalkTalk is set to increase bills for as many as 4m customers by 9.1pc in April, according to the consumer group Which?, and Vodafone’s 940,000 broadband users face a 9.3pc rise from the same month.
Critics said that the increase would sting millions of workers who have been forced to rely on home internet during Covid remote working.
Martyn James, of consumer advice company Resolver, said: “For many people, this will feel like a tax on working from home. The way we live and work has fundamentally changed and the business world has not fully caught up with it.
“The important thing to remember is that this is not just BT striking out by itself – this is going to happen with every broadband company.”
Consumer broadband charges are not regulated by the Government, but sources close to the Culture Secretary, Nadine Dorries, said she is monitoring the situation closely.
BT said the price rise, which will amount to £3.50 a month for most customers, is a “necessary part of business” as it battles to keep up with rising costs of its own following a major increase in bandwidth use driven by the rise of online gaming and internet streaming services. Data usage on BT’s network has soared by 90pc since 2018.
Julian Knight, the Tory chairman of the Digital, Culture, Media and Sport committee, said price rises in the industry will further stoke inflation.
“This extraordinary increase will be a body-blow to millions of British families who have to rely on BT for the provision of their phones and broadband. Honestly I can’t see that this is justified in any way,” he said.
“BT moving in this direction could mean that other suppliers in the utilities try to get away with similar increases, in which case we will be in a serious inflationary spiral.”
The higher charges will come in a bleak April for consumers, with an increase in national insurance adding £255 to the average annual bill. The energy price cap is also due to go up, increasing typical household costs by around £650.
Vulnerable customers will be insulated from BT’s price rise, with no increase for those on the company’s Home Essentials, Home Phone Saver and Basic plans.
A spokesman for BT said: “We appreciate that price changes are never welcome but in order to continue to deliver the best products and services and build extra capacity into our network we must continue to invest to meet the growing demands. If any customer is worried, they should speak to us and we can find a solution which works for them.”
