Customers must be told in advance about any planned rises in their contract, Ofcom has announced.
The communications regulator has reacted to the recent trend of UK phone, broadband and pay-TV companies to change their contract terms to include price rises linked to future inflation rates. In addition to an inflation rate increase operators have added an additional percentage – typically 3.9% – implemented every March or April.
Ofcom says that from 17 January 2025 customers must be told “upfront in pounds and pence” about any planned increases.
“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,” said Cristina Luna-Esteban, Ofcom Telecoms Policy Director. “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.”
Over the last five years, average prices for broadband and mobile services in the UK have fallen in real terms. For example, the average superfast broadband bundle list price has decreased from £48.71 in 2018 to £42.28 in 2023.
