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Telecoms giant BT are putting up prices by more than six per cent, four times more than the cost of living, putting more pressure on families already struggling with household bills.
ITV News correspondent Marc Mallett reports on the changes:
Small increases in phone and broadband bills "could have a big impacts on family finances," according to the chief executive of Citizens Advice.
Speaking after BT announced that prices for phone and broadband packages will rise by up to 6.5%, Gillian Guy said: "Inflation-busting price rises are bad news for cash-strapped households."
She added: "With the extremely tough pressures on household budgets at present and wages that will continue to stay way below inflation, even a small increase in phone and broadband bills could have a big impact on family finances."
Utility providers need to be up front with their customers about when prices are going up and where there are savings to be made, she said, adding that Citizens Advice has dealt with more than 62,000 telephone and broadband debt problems in the last 12 months.
BT's chief executive has insisted the company is "sensitive to the tough economic times," despite announcing a rise in prices from December.
John Petter said: "Although some prices have gone up, we want to help our customers to find the best value BT option with Right Plan."
Petter added: "BT is sensitive to the tough economic times and we've taken care to make sure that low-income customers avoid price increases. We've added extra money-saving options for low-income customers and for customers who only want a phone line for calls."
BT is set to increase prices by up to 6.5%, with landline calls, broadband internet and standard line rental for direct debit customers all set to rise.
The telecoms giant said the pence per minute (ppm) rate for calls to UK landlines and 0870 numbers will go up 6.44% from 9p a minute to 9.58p. The set-up fee for landline calls will increase from 15p to 15.97p.
Broadband prices are going up by as much as 6.49%, although BT said its current "high profile" press and TV broadband offers will stay the same price.
They 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% in the last five years".