Unpredictable mid-contract price rises banned by Ofcom

Broadband, mobile phone and pay TV customers must be told upfront in pounds and pence about any price rises they will incur and when these will happen in their contract, under new consumer protection rules announced by telecom regulator, Ofcom (July 19 2024).

This is to stop major providers hiking up their prices each year in response to inflation. This confusing and unpredictable practice traditionally saw millions of households facing higher bills every spring (in 2024 this was up to 8.8% more) with no choice but to accept and pay.

Under new rules, from January 2025, any price written into a customer’s contract will need to be set out in pounds and pence, prominently, transparently and at the point of sale. So when they sign up, providers will need to be totally clear about when and how much any prices changes will happen.

How this will look

Cristina Luna-Esteban, Ofcom Telecoms Policy Director, says:

“With household budgets squeezed, people need to have certainty about their monthly outgoings. But that’s impossible if you’re tied into a contract where the price could change based on something as hard to predict as future inflation.

We’re stepping in on behalf of phone, broadband and pay TV customers to stamp out this practice, so people can be certain of the price they will pay, compare deals more easily and take advantage of the competitive market we have in the UK.”