BT set to cut prices for one million customers

BT is set to slash bills for up to one million customers on Sunday after a ruling last year from Ofcom told the telecoms company to cut bills.

Customers with landline only services will see bills cut by 37 per cent – from £18.99 to £11.99, equaling a saving of £7.00 a month or £84.00 a year.

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The changes come after last year’s ruling by Ofcom who said bills from landline only services should be cut as landline-only customers have not received the same value for money as those who buy bundles of landline, broadband and/or pay-TV services.

The changes are expected to mostly benefit the elderly and vulnerable as research from Ofcom revealed that two thirds (66 per cent) of landline-only purchasers are over 65, and three quarters (77 per cent) have never switched provider.

The price cut will come into force on Sunday 01 April and is expected to affect 900,000 BT customers.

The changes will also see line rental and call charges capped by no more than inflation, for three years.

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The discount will apply to customers who do not buy broadband from any other provider.

BT has said it has contacted all those affected regarding the changes, and although 700,000 of those who received a letter would not have to do anything around 200,000 will have to confirm they do not have broadband to receive the discount.

Jonathan Oxley, Ofcom’s Competition Group Director, said in a statement: “We had serious concerns about soaring bills for loyal landline customers. This was hurting people who rely on their landline, many of whom are elderly.

“We’re pleased that BT has cut prices, which means these customers get a fairer deal, and they’ll be protected from price rises in the coming years.”

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Ofcome has also said that a further 200,000 customers on BT’s ‘Home Phone Saver’ package could also qualify to the reduction in bills.

Customers on the package can choose to stay on their current package, or move to the standard product being discounted, depending on which is the best deal for them.