Telecoms 'Charter' to prevent price hikes on price hikes revealed – it's an 'improvement' says Martin Lewis but 'leaves two glaring gaps'
A 'Telecoms Consumer Charter' that aims to better protect consumers from misleading price rises has been revealed. It comes after Martin Lewis, founder of MoneySavingExpert.com, prompted the Government to investigate the sector's problems by writing to the Chancellor over O2's recent price hike on a price hike.
Late last year, O2 announced that all existing customers would see their bills rise by more than they were previously told. At the time, Martin wrote to both the Chancellor and the telecoms secretary calling for urgent, tighter rules on mid-contract broadband, mobile and pay-TV price hikes.
In response, Rachel Reeves and Liz Kendall hosted a roundtable on Wednesday 11 February 2026 with the UK's biggest telecoms providers and published a new Charter for the industry to follow – we've more on this Charter below.
Martin Lewis: 'Two glaring gaps in Ofcom's flaccid rules remain unaddressed'
The Martin Lewis Podcast: Released 13 February 2026.
In this episode of his pod, Martin explains how the new broadband and mobile Charter works, and gives his view on whether it will it stop price hikes. The relevant section starts at 5 minutes and 22 seconds in:
🔊 BBC Sounds | Spotify | Apple Podcasts
(Or most other places that you get podcasts from – and why not subscribe while you're there?)
When the Charter was first revealed, Martin commented:
I am cautiously optimistic that the 'Telecoms Consumer Charter' is an improvement within the narrow range of issues it addresses. It should mean more people are aware of social tariffs, and we are less likely to see a repeat of O2's 'price hike on a price hike', where customers were told at sign-up how much prices would rise by mid-contract, only to be told later they would by hiked even more. That ran roughshod over Ofcom's supposed protections.
Yet the Charter still frustratingly leaves two glaring gaps in Ofcom's flaccid rules unaddressed. Both effectively embed above-inflation mid-contract price hikes into the mobile and broadband system – the very mischief the reforms were meant to fix.
1. Transparency doesn't stop price rises. Firms that follow the rules now simply have to tell customers, in pounds and pence, how much prices will rise by mid-contract. While that improves clarity, it does nothing to limit the size of the increase. In many cases, customers have seen bigger rises under this system than under the old inflation-linked model.
2. 'Variable pricing' remains a loophole. Sky continues to operate using a variable pricing structure, meaning customers can face mid-contract price changes, albeit with the right to leave within 30 days of notification. Yet in practice, many people only notice the increase once it hits their bill, not when the notification arrives – making that protection far less effective than it appears.
A simple fix… I don't understand why we don't grasp what is by far the simplest and most effective solution: ban firms from increasing prices above inflation during a fixed-term contract. Do that, and the job's done.
The key takeaways from the Charter
BT, Sky, TalkTalk, Three, Virgin Media O2, and Vodafone, are among the providers that have signed the Charter in a bid to improve the situation for mobile and broadband customers. More providers may also sign-up later down the line. Here are the key need-to-knows:
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It should help to prevent price hikes on price hikes. Providers have committed that where a contract includes a mid‑contract price increase, the core subscription price that customers sign up to is the price that they will pay. Any exception to this is limited "to unforeseeable and externally driven events that materially affect the cost of providing services".
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Pricing info should be laid out more clearly – though prices can still rise by more than inflation. Providers have agreed to "clearly and prominently" present a customer's full package details in one clear place, including the headline price, contract length, key terms and any add‑ons, and proactively highlight and explain any agreed changes.
However, under telecoms regulator Ofcom's 'pounds and pence' regime, which came into force on 17 January 2025, prices can still rise by more than inflation. -
It won't stop providers from using 'variable pricing'. Sky has always been the big outlier here – it tells its customers that prices may change during the contract, but it doesn't give info on how much by. Instead, it lets people leave penalty-free within 30 days of notification – something we've asked to be reviewed.
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Providers have promised to ensure information on social tariffs is easy to find and signposted. This includes making sure they are easy to locate, understand and take-up. The Government has also encouraged more providers to offer social tariffs where they can, as well as to offer practical support to people in financial difficulty, such as the ability to move to cheaper packages penalty-free or manageable payment plans.
If a signatory of the Charter fails to follow it, the Government has said further action will be taken – though it's unclear what this might involve.
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