CPI Plus 3.9% Guide

Our guide will take you through the what, when and how of CPI plus 3.9% increases and how they’ll apply to your services.

Will these prices apply to me?

These price increases will apply to you if:

  • you signed up to a contract with Plusnet on or after 7th October 2020; and/or
  • You're a customer whose fixed price contract minimum term ends on or after 2nd December 2020, and that minimum term has now ended. For all other customers, unless you're in a fixed price contract minimum term, see our CPI Guide.

What's CPI?

The Consumer Price Index (CPI) rate is a figure released by the Office for National Statistics. The CPI is used for purposes such as uprating pensions, wages and benefits and can help in the understanding of inflation on family budgets. CPI measures the average price change as a percentage for a basket of 700 different goods and services which households buy.

What prices will increase by CPI plus 3.9%?

Our broadband, line rental, call plans and some call charges will go up in price in line with CPI plus 3.9% on or after 1st June 2021 and then on or after 1st March every year from March 2022.

For any customer who signs-up or take a new contract on or after 7th October 2020, early termination charges will also increase in line with CPI plus 3.9%

How will the CPI plus 3.9% price increases work?

On or after 1st June 2021 we'll take the CPI percentage rate published by the Office for National Statistics in April of that year and add an extra 3.9% to the rate. We'll increase the monthly price of broadband, line rental, call plans and call charges by the total percentage figure.

On or after 1st March every year from March 2022, we'll take the CPI percentage rate published by the Office for National Statistics in January of that year and add an extra 3.9% to the rate. We'll increase the monthly price of broadband, line rental, call plans and call charges by the total percentage figure.

If the published CPI percentage rate is negative, we'll only increase your prices by 3.9% in the relevant year.

The calculated increase will be rounded up to the nearest whole pence.

Where you buy more than one service from us and each is subject to the price increase, the amount of the increase is calculated on each service separately. If you receive a discount on your price, the increase will be applied to this amount.

Here's an example to show how the price rise works.

Let's say:

You have Unlimited Fibre Broadband and line rental and an Evening and Weekend UK &Mobile call plan. The price of your package is made up of:

  • Unlimited Fibre Broadband - £16.23 per month
  • Line rental - £20.29 per month
  • Evening and Weekend UK & Mobile Call plan - £5.00 per month
  • Your total monthly price = £41.52
  • The CPI rate published in April 2021 is 0.9%
  • The CPI rate published in January 2022 is 1.2%
Monthly price up to June 2021 £41.52
Monthly price from June 2021 to Feb 2022 £43.51

Worked out as follows:

Unlimited Fibre Broadband £16.23 per month plus 4.8% (the 0.9% CPI rate published in April 2021 plus 3.9%)

= £16.23 x 4.8% = £0.78

£16.23 + £0.78 = £17.01 per month

Line rental £20.29 per month plus 4.8% (the 0.9% CPI rate published in April 2021 plus 3.9%)

= £20.29 x 4.8% = £0.97

£20.29 + £0.97 = £21.26 per month

Evening and Weekend UK & Mobile Call plan £5.00 per month plus 4.8%

(the 0.9% CPI rate published in April 2021 plus 3.9%)

= £5.00 x 4.8% = £0.24

£5.00 + £0.24 = £5.24 per month

Total monthly price:

£17.01 + £21.16 +£5.24 = £43.51

Some call charges will also increase in price. See What about changes to call charges? for more details.
Monthly price from March 2022 to Feb 2023 £45.63

Worked out as follows:

Unlimited Fibre Broadband £17.01 per month plus 5.1% (the 1.2% CPI rate published in January 2022 plus 3.9%)

= £17.01 x 5.1% = £0.87

£17.01 + £0.87 = £17.88 per month

Line rental £21.26 per month plus 5.1% (the 1.2% CPI rate published in January 2022 plus 3.9%)

= 21.26 x 5.1% = £1.08

£21.26 + £1.08 = £22.24 per month

Evening and Weekend UK & Mobile Call plan £5.24 per month plus 5.1% (the 1.2% CPI rate published in January 2022 plus 3.9%)

= £5.24 x 5.1% = £0.27

£5.24 + £0.27 = £5.51 per month

Total monthly price:

£17.88 + £22.24 +£5.51 = £45.63

Some call charges will also increase in price. See What about changes to call charges? for more details.

When will you tell me my prices are going up?

We'll need to wait for the CPI rate to be published in April 2021 and then every January from 2022 onwards to work out how it will change your price. We'll always let you know before we increase our prices.

Does CPI Plus 3.9% apply to fixed price contracts?

If you've signed up to one of our fixed price contracts and you're still within your minimum term it will do exactly what you'd expect. Your broadband and line rental prices won't change during the minimum term of your contract.

If you're a customer whose fixed price contract minimum term ends (or has ended) on or after 2nd December 2020, the below terms will apply when that minimum term ends-

  • Your broadband and line rental will increase to the then applicable out of contract price set out in our Price Guide at that time; and
  • Your terms and conditions will include CPI plus 3.9% price changes. This means the price for broadband, line rental, call plans and call charges will be increased on or after 1st June 2021 and then on or after 1st March every year from March 2022. On or after 1st June 2021, prices will increase by the Consumer Price Index rate of inflation published in April of that year plus 3.9%. On or after 1st March every year from March 2022, prices will increase by the Consumer Price Index rate of inflation published in January of that year plus 3.9%.

If your fixed price contract minimum term ended (or is due to end) before 2nd December 2020, and you haven't taken a new contract with Plusnet on or after 7th October 2020, see our CPI Guide for more details.

When your fixed price contract minimum term is coming to an end, we'll send you an end of contract reminder and offer you an account review.

What about changes to call charges?

Some call charges will go up in price in line with CPI plus 3.9% on or after 1st June 2021 and then on or after 1st March every year from March 2022. Please see our Price Guide for details.

Here's an example to show how call charge price increases work

A call to 01, 02 and 03 costs: £0.23 set up fee and £0.15 pence per minute rate.

Price up to June 2021 £0.23 set up fee

£0.15 pence per minute rate
Price from June 2021 to Feb 2022 £0.24 set up fee

£0.16 pence per minute rate

Worked out as follows:

Set up fee £0.23 per call plus 4.8% (the 0.9% CPI rate published in April 2021 plus 3.9%)

= £0.23 x 4.8% = £0.01

£0.23 + £0. 01 = £0.24 set up fee

Pence per minute rate £0.15 plus 4.8% (the 0.9% CPI rate published in April 2021 plus 3.9%)

= £0.15 x 4.8% = £0.01

£0.15 + £0.01 = £0.16 pence per minute rate
Price from March 2022 to Feb 2023 £0.25 set up fee

£0.17 pence per minute rate

Worked out as follows:

Set up fee £0.24 per call plus 5.1% (the 1.2% CPI rate published in January 2022 plus 3.9%)

= £0.24 x 5.1% = £0.01

£0.24 + £0. 01= £0.25 set up fee

Pence per minute rate £0.16 plus 5.1% (the 1.2% CPI rate published in January 2022 plus 3.9%)

= £0.16 x 5.1 % = £0.01

£0.16 + £0.01 = £0.17 pence per minute rate

What about changes to early termination charges?

For any customer who signs-up or take a new contract on or after 7th October 2020, early termination charges will also be subject to CPI plus 3.9% price rises on or after 1st June 2021 and then on or after 1st March every year from March 2022

Please see our Price Guide for details.

Can I cancel my contract because of these changes?

If we're only putting up the price of broadband, line rental, call plans and call charges in line with the CPI plus 3.9% and you choose to cancel because of that, you'll still need to pay any early termination charges if you're still within your minimum term. This is because the amount we can increase your price by is fixed to any increase in CPI plus 3.9% and we'll have made the price increase clear when you signed up and you'll have agreed to it in our terms and conditions.

If we put up our prices for any other reason though, you might be able to end your contract early without paying any charges.

Will these price increases apply to me?

These price increases will apply to you if you signed up to a contract with Plusnet Mobile and/or changed your Plusnet Mobile plan on or after 7th October 2020.

For all other customers see our CPI Guide.

What's CPI?

The Consumer Price Index (CPI) rate is a figure released by the Office for National Statistics. The CPI is used for purposes such as uprating pensions, wages and benefits and can help in the understanding of inflation on family budgets. CPI measures the average price change as a percentage for a basket of 700 different goods and services which households buy.

How will you work out how much you'll put up your prices by?

On or after 1st June 2021 we'll take the CPI percentage rate published by the Office for National Statistics in April of that year and add an extra 3.9% to the rate. We'll increase the monthly price of your mobile plan by the total percentage figure.

On or after 1st March every year from March 2022, we'll take the CPI percentage rate published by the Office for National Statistics in January of that year and add an extra 3.9% to the rate. We'll increase the monthly price of your mobile plan by the total percentage figure.

If the published CPI figure is negative, we'll only increase your price by 3.9% in the relevant year.

The calculated increase will be rounded up to the nearest whole pence.

Where you buy more than one service from us and each is subject to the price increase, the amount of the increase is calculated on each service separately. If you receive a discount on your plan price this will not change. The price increase is applied to the standard plan price and then the same discount as before is applied afterward to calculate your new plan price.

Here's an example to show how the price rise works.

Let's say:

  • You have a mobile plan that's £10 a month
  • The CPI rate published in April 2021 is 0.9%
  • The CPI rate published in January 2022 is 1.2%
Monthly price up to June 2021 £10
Monthly price from June 2021 to Feb 2022 £10.48

Worked out as follows:

SIM only plan £10 per month plus 4.8%

(the 0.9% CPI rate published in April 2021 plus 3.9%)

= £10.00 x 4.8% = £0.48

£10.00 + £0.48 = £10.48 per month
Monthly price from Mar 2022 to Feb 2023 £11.01 Worked out as follows:

SIM only plan £10.48 per month plus 5.1%

(the 1.2% CPI rate published in January 2022 plus 3.9%)

£10.48 x 5.1% = £0.53

£10.48 + £0.53 = £11.01 per month

When will you tell me that your prices are going up?

We'll need to wait for the CPI rate to be published in April 2021 and then every January from 2022 onwards to work out how it will change your price. We'll always let you know before we increase our prices.

What about changes to early termination charges?

For any customer who signs-up or take a new contract with Plusnet Mobile and/or changes their Plusnet Mobile plan on or after 7th October 2020, early termination charges will also be subject to CPI plus 3.9% price rises on or after 1st June 2021 and then on or after 1st March every year from March 2022.

Can I cancel my mobile contract because of these changes?

If we're only putting up prices in line with the CPI plus 3.9% and you choose to cancel because of that, you'll still need to pay any early termination charges if you're still within your minimum term. This is because the amount we can increase your price by is fixed to any increase in CPI plus 3.9% and, we'll have made the price increase clear when you signed up and you'll have agreed to it in our Mobile Terms.

If we put up our prices for any other reason though, you might be able to end your contract early without paying any charges.

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