New rules coming into effect from January 2025 will ban mobile, broadband and pay TV firms from imposing mid-contract price rises which are linked to future inflation rates.
In recent years major providers in each of the markets have added clauses to their terms and conditions allowing them to increase fees during the contract by an inflation-based formula. This leaves customers unable to know the scale of any future price rises they’re agreeing to and, when inflation soars, can leave them with substantially higher bills.
Under new rules confirmed today by media and telecoms regulator Ofcom, such rises will be banned from 17th January 2025 and providers will instead be required to set out the amount of any rises during the contract period in pounds and pence.
Today’s announcement follows a consultation on the new rules which were first proposed last year.
Cristina Luna-Esteban, Ofcom Telecoms Policy Director, said: “With household budgets squeezed, people need to have certainty about their monthly outgoings. But that’s impossible if you’re tied into a contract where the price could change based on something as hard to predict as future inflation.
“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.”