Recent BT price increase
Michael Phillips, product director of Homephonechoices.co.uk comments on BT's pricing increase announcement: "It's disappointing to see the country's largest home phone provider raise line rental charges and call setup and daytime rates; bills should be getting cheaper given the current state of their customers' finances and with a ‘double dip' in the economy looming on the horizon.
"Line rental increases grab the headlines but we would urge customers to carefully consider their calling habits as well. For example, some providers charge over 20p a minute for mobile calls which can have a massive effect on your monthly bill. It's crucial customers consider a wide range of factors including line rental; inclusive call packs; mobiles call rates; and 0870 numbers.
"BT sets the agenda in the home phone market so I won't be surprised if we see other providers follow suit and hike up their own charges.
"The introduction of a pay upfront ‘Line Rental Saver' plan is compelling based on an equivalent monthly line rental cost but given the current state of most peoples' finances, it's questionable how many will want to shell out over £100 up front. The cheapest UK line rental - Primus Home Phone Saver - at £8.99 a month is exclusive to Homephonechoices.co.uk but the flip side is that the cost of mobile calls can be expensive compared to BT and others providers.
"Your home phone bill is often the "forgotten" bill - but, just like insurance and financial products, large savings are possible if you shop around."
Top tips
1. 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.
2. 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.
3. Check your small print - If you're tied to a 12 or 18 month contract, you may be faced with exit fees if you want to switch before the contract term ends. Weigh up the savings and charges before making your decision as you may find the savings don't merit the switch.
4. 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.