Ofcom announces new mid contract price rise protections

20th January 2025

Ofcom has announced new measures meaning that telecom providers must now set out upfront, in pounds and pence, any price rises that will apply to customer contracts.

Ofcom says that in recent years, many phone, broadband and pay TV companies have included price rises in their contract terms that were linked to unknown future inflation rates. These terms made it complex and laborious for customers to estimate what they will pay under a new contract, and complicated the process of shopping around for a deal. The regulator has now banned this practice.

The new rules will mean that any price rise written into a customer’s contract will need to be set out in pounds and pence, prominently and transparently, at the point of sale; and providers will need to be clear about when any changes to prices will occur. This will give consumers clarity and certainty about the prices they will have to pay, helping them choose the best deal for their needs.

Several providers offer contracts that do not contain price rises. Some others offer contracts that permit for unspecified price rises during the contract period. If they do this, they must give customers 30 days’ notice and the right to exit penalty-free, so consumers can avoid these price rises if they want.

For people claiming certain benefits, there are cheaper packages available known as social tariffs, which don’t include any mid-contract price rises. These make sure there are affordable options available for low-income households. An increasing number of people are benefitting from these offers, with more than 500,000 customers haven taken advantage of them.

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.”