Ofcom’s inflation-linked mid-contract price hike ban – here’s how it affects you 

None of us enjoy our bills going up, and it’s even less enjoyable when we can’t predict exactly how much they’re going up by.

Mid-contract price rises linked to inflation for mobile, broadband and TV contracts have been common practice for providers. It’s left consumers feeling the pinch as it’s not clear at the start of a deal what the mid-contract price rises will be due to the volatility of the Consumer Prices Index (CPI) and Retail Prices Index (RPI) they’re often linked to.

The lack of clarity around these increases is set to become a thing of the past, as regulatory watchdog Ofcom has stepped in to force providers to change the way they advertise mid-contract increases.

What is the new Ofcom price hike ban?

From 17 January, 2025 mobile, broadband and TV providers will need to declare in pounds and pence any mid-contract price rises in a customer’s deal.

The details of these mid-contract price rises must be displayed prominently and transparently at point of sale. In other words, providers must inform you upfront about price rises during your contract period before you sign on the dotted line.

As well as clearly stating what your new monthly payment will be after the rise, providers must also say when the increases will happen.

Cristina Luna-Esteban, Ofcom Telecoms Policy Director says “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.”

The new legislation doesn’t do away with mid-contract price increases though. Andy Aitken, CEO and Co-founder of Honest Mobile says ”while this gives more clarity, it doesn’t protect customers from price hikes.”

Who will the Ofcom price-hike ban affect?

All mobile phone, broadband and pay TV providers who include CPI and RPI-linked mid-contract rises must follow these new rules for all new contracts from 17 January 2025 onwards.

Customers in the middle of a contract over this date won’t necessarily see the clarity of the pricing rules until their current contact comes up for renewal. At which point your provider must tell you upfront exactly how much mid-contract price rises will be, and when they’ll occur.

Some providers implemented the new rules in 2024, so your current contract may already fall in line. “If you’re already in the middle of a contract, you’ll need to trawl through the small print to find out if you have a pounds and pence price hike (the new rules) or a percentage price hike (the old rules),” Aitken explains.

“Next time you renew, you’ll likely find these price hikes are called out a bit more clearly.”

If you’re unsure what price rises you are liable for on your current deal, it’s worth getting in touch with your provider to save you going through the fineprint.

How will service providers communicate mid-contract price increases in future?

Providers must state, in pounds and pence, how much mid-contract price rises will be, and at what point(s) during the contract they’ll take effect.

This information must be clearly displayed at the point of sale, such as on the provider’s website where it lists details of the various deals and packages it offers consumers, and before a customer signs up to a deal.

Ofcom shared the following image to show providers how it expects this information to be displayed.

Is this good or bad for consumers?

Clarity over price changes during the length of a contract is a positive move, as it allows customers to plan their finances accordingly, and they won’t be caught off guard when April rolls around.

However, with providers setting flat rates for increases not all customers will necessarily be better off with the new rules. It depends on how much you’re spending per month.

Those paying a higher amount each month could see a saving against the percentage-based, inflation-linked increases previously employed by providers.

“Previously, a 15% price increase affected customers with a £10 bill and a £50 bill in the same way; they both got a 15% price hike. A £10 customer would pay £1.50 more and a £50 customer £7.50 more,” Aitken says.

“The new situation could be worse – if a network has a flat rate increase of £2.50, that equates to a 25% increase for the £10 customer and just a 5% increase for the £50 customer.”

For example, if you take out a broadband and TV package on 31 January 2025 at £69 per month, you will be liable for a £3 increase (varies by provider) in April 2025.

This will increase your payments to £72 per month, equivalent to a 4.4% price rise. Compare that to 2024, where the inflation-linked price hikes were 7.9% (industry average), and there’s a clear saving.

Yet, take out a cheaper broadband-only package at £23.50 per month, and you’ll still be subject to the £3 per month increase in April. This will take your bill to £26.50 per month, an effective price rise of almost 13%, way above the industry average rise last year.

Matthew Sheeran, money-saving expert at Money Wellness, says “People on lower cost contracts who are most likely to be those from low-income households come off worse under the new charging rules.

“Only those on more expensive contracts save with the changes. This means that the very people the legislation set out to help are losing out.

For those struggling to pay their bills there is help available, as Sheeran explains: “anyone with lower-cost contracts from low-income households who are struggling to pay their bills following the price rises should speak to their providers about moving to a social tariff.

“They are available for around 4.3 million households and can save users about £200 a year. Importantly, they are also not subjected to mid-contract price rises, so you pay what you agree. They are delivered the same way as regular packages at much lower prices and won’t cost you anything to switch either.”

There are those who believe the measures don’t go far enough, calling for mid-contract price rises to be removed altogether.

Tom MacInnes, Director of Policy at Citizens Advice, said: “Mobile and broadband customers have faced years of unfair, unpredictable and above inflation mid-contract price rises. It’s only right that Ofcom is acting on this. But in the time it’s taken to reach this point, billions have been added to bills at a time when we know so many are struggling.

“While we welcome steps to ban inflation-linked hikes, the new rules fall short of a full ban on prices rising mid-contract. It is clear already that there will be customers who will end up seeing bills not only rise above inflation, but potentially by more than they would under the previous model.”

MacInnes also warned Ofcom that they’d be monitoring how the new rules influence prices going forward, not ruling out calls for further action if necessary. “We will continue to monitor this and are clear that if consumers end up worse off, then Ofcom must go back to the drawing board,” he said.

Are there other ways to save money on my mobile, broadband and TV deals?

Once you’ve signed on the dotted line, you’re committed to the monthly payments (and any associated mid-contract rises) for the duration of the deal. This doesn’t mean you are completely out of options, as consumer expert, Helen Dewdney, from The Complaining Cow explains.

“Do your research and work out how much your ‘exit fee’ would be, if you would be charged one, and see what other companies can offer. The ‘exit fee’ should be clearly displayed in your current contract.

“Look at comparison sites, including using cashback sites. This would allow you to tell your current provider the price, showing that, even with the exit fee, it is cheaper to leave.”

Sometimes it’s possible to haggle with your current provider. Here at Expert Reviews, we’ve had success haggling with broadband and TV service providers on the phone to reduce monthly bills without cutting services. It requires patience, perseverance and often multiple calls – and sometimes it can really pay off.

And if you’re still not getting anywhere, you can always go to the boss. “Find the email address for the CEO from ceoemail.com and write to the boss, saying that you are intending to leave and follow the advice above,” Dewdney says.

“This also works if you feel that you don’t want to speak to anyone by telephone or you want written evidence that a deal has been agreed.”

How are providers handling the changes?

Most providers implemented the new rules ahead of the 17 January 2025 deadline, meaning some new and re-contracting customers have already benefited from the pricing transparency at the time they signed.

Many providers are applying a flat, annual increase for all customers, but some, such as Tesco Mobile and Three, have differing rates for some customers depending on how much they’re paying / how much data is included in their contract.

With the majority of providers, mid-contract price rises will be applied in April of each year. Every provider has to state when the annual increases will take effect, and this information should be easy to see alongside the pounds and pence amount at point of sale.

Example: You take out a new, two year broadband contract on 20 January 2025 at £30 per month, with an annual pound and pence mid-contract price rise of £3 per month. Throughout the 24 month contract, you will pay:

• January- March 2025 | £30 per month
• April 2025 – March 2026 | £33 per month
• April 2026-January 2027 | £36 per month

Annual mid-contract price increases for new and re-contracting customers from 17 January 2025*

*Some providers rolled out the new mid-contract price regulations for new and re-contracting customers before the 17 January 2025 deadline

BT, EE & Plusnet

• Mobile customers: annual increase of £1.50 per month
• Pay TV customers: annual increase of £2 per month
• Broadband customers: annual increase of £3 per month

BT implemented Ofcom’s new rules in April 2024 for BT and EE customers, way before the January 17, 2025 deadline. BT also owns broadband provider Plusnet, and the new pounds and pence changes were rolled out during summer 2024 for customers.

When it comes to future price rises, BT has confirmed “from 31 March 2025, for new and re-contracting mobile customers, this annual increase will be an extra £1.50 a month.

“It will be £1.50 a month for connected devices (including laptops, tablets and smart watches), £2 a month for TV customers, and £3 a month for broadband customers. Out-of-bundle services will be subject to an annual 5% increase.

“There will be no plan increases for our customers in financially vulnerable circumstances on EE Basics or BT Home Essentials.”

iD Mobile

• SIM-only customers: no mid-contract price increases

iD Mobile’s SIM-only plans get the network provider’s “Price Lock” guarantee, meaning they are not subject to annual CPI or RPI price increases.

O2

• Airtime (mobile) plans: annual increase of £1.80 per month
• Data only & smartwatch plans: annual increase of £0.75 per month

O2 has implemented Ofcom’s new rules, with the first mid-contract price rise in line with this happening in April 2025. If you have a plan which consists of both airtime (calls, text, data) and a device, only the airtime section of your plan will increase.

For example, if you’re a new customer signing up to a £55 per month plan (£30 airtime, £25 device) you’ll pay an additional £1.80 per month on the airtime portion from April 2025, taking total expenditure to £56.80 per month.

Sky / NOW

• Mobile customers: no mid-contract price increases
• Broadband customers: TBC
• TV customers: TBC

Sky finds itself in a unique position. As its price increases are not linked to CPI or RPI, it falls outside of the scope for Ofcom’s new rule, meaning it doesn’t need to follow the same rules.

Sky broadband, Sky TV, Now broadband and Now TV customers can still face mid-contract price rises, but these may not be stated in pounds and pence when you take out the contract. According to Uswitch, Sky increased prices by 6.7% on average for broadband and TV customers in April 2024 – below the industry average.

We’re waiting for Sky to announce its 2025 price rises for broadband and TV customers.

You can leave your Sky broadband contract within 30 days of a mid-contract price increase at no charge, but Sky TV customers have to pay an early exit fee if they leave after a mid-contract price rise.

Sky Mobile customers won’t face any mid-contract price rises. You’ll pay the same monthly amount for the duration of your contract. Out of contract Sky Mobile customers will experience a £1.50 price increase on their monthly payments from 14 February 2025.

TalkTalk

• Broadband customers: annual increase of £3 per month

Broadband provider TalkTalk introduced the new Ofcom rules for new and re-contracting customers in August 2024, with a flat annual rise of £3 per month.

For example, a new customer signing up for a 24-month contract after 12 August 2024 would see an increase to £31 per month in April 2025 and then increase to £34 per month in April 2026, continuing until the contract ends.

Tesco Mobile

• Mobile customers: annual increase of £variable
• No mid-contract price rises for customers on Clubcard deals

Tesco has been communicating mid-contract price rises in pounds and pence to new and re-contracting customers since 17 December 2024.

Those on a Clubcard deal contract are exempt from mid-contract rises. Your monthly payment is set to what was agreed at the start of the deal.

For new and re-contracting customers not taking out a Clubcard deal after 17 December 2024, the mid-contract price rises are linked to the amount you’re paying each month.

If, for example, you’re on a £14.99 per month deal, Tesco will increase your contract by £0.90 per month each April. Meanwhile, if you’re paying £30 per month, you’re looking at a £1.80 per month increase each April.

Three

• Mobile customers, 4GB or less: annual increase of £1 per month
• Mobile customers, 5GB-99GB: annual increase of £1.25 per month
• Mobile customers, 100GB+: annual increase of £1.50 per month
• Mobile broadband customers: annual increase of £1.50 per month
• Home broadband customers: annual increase of £2 per month

Three has taken a more granular approach to Ofcom’s new rules, splitting its mid-contract price rises for mobile customers into three bands. The amount of data you get on your mobile plan will dictate the annual price rise you’ll get on your monthly payment.

The provider also notes: “If you’re a Three Your Way customer, the increase will only apply to your Monthly Charge for your airtime plan. Any device payments, if applicable, will not be affected by the increase.”

Virgin Media

• Subscription customers: annual increase of £3.50 per month

Customers who are new to, or re-contracting with Virgin Media from 9 January 2025 will see their contracts fall in line with Ofcom’s new rules.

Things are kept simple here, with the pay TV and broadband provider applying a £3.50 per month increase each April to bills.

It means if you took out a new Virgin Media contract on 11 January 2025 at £45 per month, from April 2025 you’ll be paying £48.50 per month.

Not all contracts will experience the mid-contract price increase, however, as Virgin Media notes: “Exceptions include (but aren’t limited to) Essential broadband, Essential broadband plus, Talk Protected plans and Flex. These exceptions are the same for all customers, regardless of when you joined or took out a new contract.”

If you joined or renewed your Virgin Media contract before 9 January 2025, you’re still bound by the previous mid-contract price rise rules of the Retail Price Index (RPI) rate of inflation plus an additional 3.9%. In December 2024 the RPI was 3.5%.

Vodafone

• Mobile customers: annual increase of £1 per month
• Broadband customers: annual increase of £3 per month

Vodafone implemented the new Ofcom rules in July 2024, confirming the following rises for the next two years.

“For example, customers taking out a contract in August 2024 will see their bill adjusted in April 2025, and then in April 2026, by a set amount. Plans will increase from £1 a month on mobile and £3 a month for broadband customers.

“There will be no increases for customers registered as financially vulnerable or those on social tariffs.”