BT clobbers families with another rise - The Sun
edited by Steve Hawkes 
BT clobbers families with another rise
By STEVE HAWKES, Sun Business Editor
BT is hitting more than 10 million customers with a FOURTH price rise in 20 months.
The group will reveal today that the cost of line rental, daytime calls, evening calls and call set-up fees are going up.
The price hikes of "five per cent or less" will take effect in December and BT has vowed to freeze all charges in 2013.
But it's another hammer blow to cash-strapped families who face inflation-busting hikes in winter energy bills.
Michael Philips of comparison site HOMEPHONECHOICES said: "While in line with inflation, they will prove very unpopular with households already feeling the pinch.
"It marks the tenth price rise from a major provider this year. It is inevitable others will follow."
BT gave no excuse for the hikes other than it wants to "incentivise" customers on to fixed contracts that lock them in at least a year.
Under BT Anytime, customers can make any number of UK calls for 4.70 a month.
John Petter of BT's Consumer Division said announcing the upcoming price rises now gave customers "greater certainty over their bills".
He insisted: "We are committed to offering really good value for money."
But experts said it will hit elderly or less "internet savvy" households hardest.
BT's hikes will push line rental from 13.90 a month to 14.60 an extra 8.40 over the course of a year.
The line rental has gone up 14 per cent, or 21.72 a year, since January 2010. The call "set-up fee", that everyone pays for making a call, will rise from 12.5p to 13.1p.
The cost of a daytime call will hit 7.95p a minute up from 5.4p a minute at the start of 2010.
Debs' Ruby makeover
FUDDY-DUDDY department store DEBENHAMS is glamming up in a tie-up with celebrity make-up artist Ruby Hammer.
The chain is launching a designer range endorsed by the Brit called Ruby Hammer Recommends.
Ruby, 49, has starred in telly makeover shows including Channel Four's Ten Years Younger and the BBC1's Style Challenge.
She said of the 22-product range: "Every item incorporates a variety of colours to suit all seasons and fashion needs."
Sara Stern, the beauty trading director for Debs, added: "This is perfectly pitched for the Christmas gift market."
The range will hit stores next week.
Owners' rate lift
THE cost of owning a home has fallen to the lowest level in 12 YEARS thanks to rock-bottom interest rates.
HALIFAX revealed last night that on average, typical mortgage payments were now just 28 per cent of disposable income.
That is the lowest level since 1999 and down by almost HALF from the peak of 48 per cent just before the credit crisis erupted.
Affordability is better in every region. East Ayrshire in Scotland is the cheapest place to buy, with mortgage payments at 17.7 per cent of income.
And London's Kensington & Chelsea remains the most expensive, at a whopping 74.5 per cent.
Housing economist Martin Ellis said: "This just shows the benefit of having low interest rates."
The survey, which excluded soaring mortgage arrangement fees, also found the average first-time buyer's deposit rose from 20 to 25 per cent since the crunch.
Yesterday, CHELSEA BUILDING SOCIETY launched a ten-year mortgage at a fixed rate of 3.99 per cent.
Divide widens
THE gaping north-south divide in Britain's property market is getting WIDER.
While prices rose by 2.2 per cent last month in the South-West, they crashed by 2.3 per cent in the North-East.
Houses in the North- East are now changing hands for an average of 101,143 8.8 per cent down on the same time a year ago.
Overall, house prices rose by 52 a DAY last month, or 1.3 per cent, to an average of 163,049.
Pound shop is quids in...
BARGAIN bucket chain POUND-WORLD is launching a new "multi-price" format as inflation pushes products over a quid.
The chain said yesterday it would create 1,000 jobs over the next year with the launch of DISCOUNT UK.
The new brand is being led by Chris Edwards Jr, the son of the tycoon who founded Poundworld on a market stall in Wakefield, West Yorks, 37 years ago. Prices will range from 28p to 25.
Chris Junior said: "Until now we've only been able to stock products that can retail for one pound. This meant we had to keep turning down great products from a wide range of household names and leading brands that wanted to work with us."
About 15 Discount UK stores will open in the coming year plus 40 other Poundworld sites.
The expansion means the Pound shops are moving ever closer to mimicking the model used by WOOLWORTHS for almost a century until it shut its doors for good in 2008.
Chris, who began visiting Chinese suppliers at the age of 14, said: "Woolworths offered great variety and value and when it closed we felt we could step into its shoes."
FTSE 100 CLOSED DOWN 1.18 AT 5129.92
Please note, the opinions expressed below are those of the writers and do not necessarily reflect those of The Sun. The Sun accepts no responsibility legal or otherwise for the accuracy or content of member.
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