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BT and TalkTalk monthly line rental increases

1st April 2009 Print
Despite their customers being harder up than ever, BT has increased its monthly line rental charge by almost £1 from £10.27 to £11.25 and TalkTalk has added 75p per month to bring its charge from £10.50 to £11.25.

Michael Phillips, product director, HomePhoneChoices.co.uk said: "This price increase is very disappointing; bills should be getting cheaper given the current state of their customers' finances in the midst of the credit crunch."

"BT sets the agenda in the home phone market, so I won't be surprised if we see smaller providers follow suit and hike up their own line rental charges."

BT charges an additional £1.50 per month for customers that don't pay by direct debit which TalkTalk doesn't offer as an option. In addition, both providers charge an extra £1.25 per month if customers don't take their paperless billing option.

Phillips continued: "We would definitely recommend that customers pay by direct debit and opt for paperless billing". If you can't pay by direct debit then the Post Office accepts payment by cheque, cash or over the phone with no additional charge and no minimum contract period."

"BT still has the lion's share of the line rental market but there are alternatives that offer valuable savings. Customers need to compare call plans and home phone options through a reputable comparison site like HomePhoneChoices.co.uk."

Three top tips to get the best phone deal:

Pay by direct debit - Nearly all providers discourage payment by any means other than direct debit and impose punitive charges of anything up to £5 per month for dealing with cheques. The Post Office accepts payment by various means with no additional charges

Go for paperless billing - Some providers offer useful savings if you receive your statements online, not by post. You'll also do your bit for the environment

Consider bundling - If you have broadband and/or you subscribe to a digital TV service then you could make considerable savings through bundling these with your home phone.