TalkTalk is following in BT's footsteps by announcing it will be increase its line rental by 55p from October.

The increase will see customers forking out £12.04 instead of £11.49 per month for their TalkTalk line rental. The price hike is part of a number of charges being increased by the ISP.

The move has been widely criticised, particularly since TalkTalk CEO Charles Dunstone slammed proposals by the previous Labour government to introduce a 'Broadband tax', which would have introduced a 50p per month levy on all homes with a landline.

"As well as being unfair we estimate that the increase in price will mean that over 100,000 mostly low-income homes will be forced to give up their broadband lines," said TalkTalk CEO Charles Dunstone said last year.

However, the tax has since been scrapped by the new coalition government.

According to Mark Schmid from TalkTalk, the price rise isn't a substitution for the broadband tax. He said all major providers will be likely to increase their line rental prices at some point, so if Labour’s proposals had gone ahead, Brits would have seen themselves forking out £1 extra per month.

 Schmid also said the figure of 100,000 quoted by Dunstone was an industry wide-figure and not just TalkTalk customers.

 "TalkTalk are confident our prices are still within the value end of the market," he added. "Hopefully our customers will recognise they're still getting good service at very good price."

See also: BT & TalkTalk want judicial review of Digital Economy Act