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Inflation-linked broadband, mobile and TV price hikes to be banned from next year

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Chris Knight
Chris Knight
Senior Energy & Utilities Analyst
19 July 2024

Broadband, mobile and pay TV firms will no longer be able to hit customers with inflation-linked price hikes mid-contract from January 2025, regulator Ofcom has confirmed. But, as MoneySavingExpert.com (MSE) founder Martin Lewis has warned, the new rules will still allow for above-inflation price rises.

Firms will have to set out future price rises in pounds and pence 

From 17 January 2025, providers will be required to set out any price rises "prominently and transparently" – in pounds and pence – before you take out any new contract.

This means the common practice of linking price rises to future, as-yet-unknown rates of inflation, often with an extra percentage on top, will effectively be banned.

The new rules WON'T override any existing contract terms – so millions of customers on older contracts will still face inflation-linked rises.

Below is an example, provided by Ofcom, of how the new regulations will work in practice:

Image shows a mocked-up screenshot of how a mobile phone deal might appear on a provider’s website. Before the proposed changes: “Monthly subscription price: £30.00*. *Monthly price will increase every April by the Consumer Price Index rate published in t

Prices could still rise above inflation – something we've campaigned against

Although these new regulations ban price hikes directly tied to inflation, they still allow for annual mid-contract increases by a fixed amount – which means prices could still rise by more than inflation.  

Martin and MSE have repeatedly called for above inflation mid-contract price hikes to be banned, as they're anti-competitive and inflationary.

In December last year, after the proposals were first announced, Martin called on Ofcom to consider changing them so that any price rise would always be the "lower of CPI [Consumer Prices Index] inflation or a fixed pounds and pence amount".

Martin also highlighted the issue in a letter to then-Chancellor Jeremy Hunt in January 2024, and called for an override so that any price rises "cannot be more than inflation".

Most on older contracts will still face inflation-linked price rises

Ofcom's new rules don't come into force until 17 January 2025 and, even when they do, they WON'T apply retrospectively to existing contracts.

As a result, most people signing up to new contracts before then – as well as those on existing contracts – will still have above-inflation price hikes baked into their contract, as is common practice for most big firms.

However, a few major providers have already moved to the new 'pounds and pence' model. If you're with one of these firms, you can check below if you're on the new or old rules:

Provider

Mid-contract price rise terms

BT, EE & Plusnet (all part of the BT Group)

Broadband, mobile and TV

- Signed up on or after 10 April 2024: your price will increase every April by £1.50/month for mobile, £2/month for TV and £3/month for broadband.

- Signed up before 10 April 2024: inflation-linked price rises.

Vodafone

Broadband

- Signed up on or after 2 July 2024: your price will increase every April by £3/month. - Signed up before 2 July 2024: inflation-linked price rises.

Mobile

- Signed up on or after 2 July 2024: your price will increase every April by £1.80/month (£1/month if you're on a 'Basic' plan). - Signed up before 2 July 2024: inflation-linked price rises.

Discounted broadband 'social tariffs' for those on certain benefits are excluded from all mid-contract price rises.

Check you're not overpaying on your broadband, mobile and TV bills now 

Broadband, mobile and TV firms have millions of customers who are out of contract and have simply been rolled on to often pricier tariffs without signing up for them. But if that's you, you can leave at any point penalty-free – and given the best broadband, mobile and TV deals tend to be for newbies, there's a good chance you're overpaying anyway.

Here are our quick steps to cut broadband, mobile and TV costs:

  1. Check if you're still in contract.

     An easy way to do this for mobiles is by texting INFO to 85075. This is free, and you should get a text back within seconds showing if you're out of contract (and therefore free to switch).

    For broadband or TV, check your online account on your provider's website, or contact its customer services.

    If you're still in contract, diarise to shop around and find a new deal as your contract end date approaches. If you're out of contract, you're likely to be overpaying, so follow the rest of the steps below.

  2. Benchmark prices elsewhere.

     You can use our tool to Compare broadband, landline and TV deals and our Cheap Mobile Finder to see what offers are out there. 

  3. Ditch and switch.

     In most broadband and mobile cases, you just need to contact your new provider and it'll take care of the switch (the process is different when switching broadband to or from Virgin Media or between pay TV providers – see our Cheap broadband guide for more info on this).

    Want to keep your mobile number? Text PAC to 65075. You'll be given a code to send to your new provider, which'll transfer your number for you within one working day (there's usually only a couple of hours of downtime).

    Do bear in mind that, if you switch, you'll be signing up to the provider's current terms, which may include inflation-linked price rises.

  4. Want to stay with your existing provider? Try haggling.

     See if it will match or beat a deal you've found elsewhere. Telecoms firms are consistently among the top companies to haggle with, according to our annual polls of MoneySavers. Our Broadband haggling and Mobile haggling guides have lots of tips on how to do this.

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