BT's inflation-busting price rises could 'tip people over the edge'

The telecoms giant will increase the price of standard line rental for direct debit customers by £1, or 6.25 per cent, to £16.99 from December 1, while the pence per minute (ppm) rate for calls to UK landlines and 0870 numbers will go up 6.44 per cent from 9p a minute to 9.58p.

BT said the majority of its customers were on inclusive call packages and did not pay the set-up fee or ppm charges, adding that calls bills had "decreased 14 per cent in the last five years".

But it said those customers on the popular Unlimited Anytime Calls plan would see the price increase by 6.43 per cent from £7 a month to £7.45.

The move follows its rival, Sky, announcing it is to increase some tariffs on September 1.

The Chief Executive of Money Advice Trust Joanna Elson, warned that BT's warning of increasing phone bills would make life "more difficult" for those who are already struggling with expenses.

"People are already struggling. If you look at this week's inflation figures, inflation is running at 1.6 per cent where as wage growth is running at 0.6 per cent.

"Already there is a gap between what people are bringing in and what they are having to pay, and then when we see an increase like this, which is almost four times inflation, that will just make things more difficult."

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