New mobile and broadband rules kick in from TODAY as millions set to face ‘unfair’ bill rises
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NEW mobile and broadband rules set to be introduced today could see millions facing "unfair" bill rises. From today (January 17) telecoms firms must set out mid-contract price rises in pounds and pence, following a ruling from regulator Ofcom. The ruling ends the practise of providers linking mid-contract increases to inflation figures.
Previously customers' monthly subscription prices would increase every year based on inflation plus an additional 3.9%. Under the new rules broadband and mobile prices can still be increased mid-contract, but any increases must be clearly set out in price and pence at the time a contract is signed.
Under the old rules customers had faced hikes of up to 8.8% in 2024 — adding as much as £50 to bills. And when inflation hit a 41-year high in October 2022 some customers saw their bills rise by up to a staggering 17.4%. Those customers would have welcomed the new pricing structure, which will cap price rises at between £1 and £3 a month.
Ofcom said the increases had demonstrated how the old system had “unfairly” put the burden of shouldering inflation costs onto customers. An Ofcom spokesperson said: "Inflation might be low now, but as we've seen in recent years, it can be incredibly volatile, and we don't think consumers should bear that risk.
"Our intervention means customers will have certainty and clarity upfront about the prices they will pay, so they can compare offers and select the best deal for them.". However, experts have said that while consumers will not be at risk of dramatic increases, the change will also mean they may not benefit if inflation remains steady or falls.