I have my line rental with the Post Office - their HomePhone package is still £10.95 a month, they removed the £1pcm DD discount when they changed their tariffs in August last year.
However, this was a good thing - at the same time, they introduced inclusive weekend calls to Australia, Austria, Belgium, Canada, Canary Islands, Cyprus, Denmark, France, Germany, Ireland, Italy, Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland and US landline and mobiles. (In the daytime and evenings calls are 5ppm).
And yes, I did have the letter on my desk to copy off :P
The most interesting thing they did was also introduce free weekend calls to UK mobile numbers - so as well as the free evenings and weekends to UK 01/02/03 numbers, you can call mobiles for owt now too :) As a consequence though they did up their connection charge to 6p per call from 3p per call, and you have to pay something like £1.75 per month for Caller ID.
The thing is, we only use our landline for the odd call - it's primarily there for the Be* ADSL2+ connection. Overall, we make a big saving over paying our line rental to BT Retail (and being tied into at least a 12 month contract too).
Oh, and even better - the Post Office's contract period is 15 days, so if they do massively hike their prices, we aren't tied into the remainder of a contract for months and months.
This is the way all telephony companies should operate imo! I will definitely be sticking with the PO for my line rental for the foreseeable future (or until either good FTTH is rolled out in the UK or hell opens its first ice rink, whichever comes first ;)
Sorry if I sound like an evangelist, but if you're after a bargain going with a third party company for your line rental (which usually provided over Openreach copper anyway, like ours is) then shopping around and generally having a bit of nouse pays off!
Mine's the one with cheaper bills in the inside pocket