Major rule change affecting anyone who pays broadband and mobile bill kicks in today
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Inflation-linked mid-contract price rises for mobile and broadband deals are now banned as new Ofcom rules come into force today. The new rules will now see any mid-contract price rises set out in exact pounds and pence "prominently and transparently" at the point of sale.
Under former rules, broadband and mobile companies are allowed to increase prices mid-contract in line with inflation from March and April, plus up to 3.9% extra on top of this. Most use Consumer Prices Index (CPI) inflation data for December or Retail Prices Index (RPI) for January to decide their increases. This saw last year's bill hiked by between 7.9% and 8.8%. This was on top of the bill hikes of 17.3% customers saw in 2023 when inflation was at its forty-year high.
The telecoms regulator says the old rules were "complex" and "laborious" for customers to estimate. It also made shopping around for a deal "a complicated process". In April 2024, Ofcom estimated that six out of 10 people were on contracts subject to inflation-linked price rises.
The regulator says the new rules will give consumers "clarity" and "certainty" in the prices they will have to pay and will help them "choose the best deal for their needs." However, you must be aware that the new rules only apply to new and renewing contracts.
Natalie Black CBE, Ofcom’s Group Director for Networks and Communications, said: “More than ever, households want and need to plan their budgets. Our new rules mean there will be no nasty surprises, and customers will know how much they will be paying and when, through clear labelling.”.
