BT has confirmed that it will be increasing its line rental price by 50p from October.

From October, the cost of renting a telephone line from the company will be £13.29, or £12.04 for those signed up to electronic billing who pay their bill by direct debit.

The costs of calls is also set to rise by around 10 percent. Making a daytime call during the week will rise to 6.4p from 5.9p. While call connection charges will also go up 1p to 10.9p.

"Like many businesses, we have to review our prices as we seek to cover costs and emerge from recession in good shape," BT said.

"BT tries to protect its customers from high prices; it has been a key mover in Terminate the Rate, the campaign to get the cost of calling mobiles lowered."

The rise in the cost of line rental will begin at the same time as a 'broadband tax' was due to be introduced.

The proposal, which was designed to fund the roll out of super-fast fibre broadband access, would have seen Brits with a telephone line paying a £50p per month levy. However, it has been scrapped by the new coalition government.

It is thought other telecommunications companies such as Sky and TalkTalk will increase their line rental costs as well.

See also: BT: Gov't needs £2bn to enable super-fast broadband