Ofcom has just introduced new rules for broadband and mobile price rises – and consumer rights expert Martyn James is here to outline everything you need to know
Of all the different businesses that we have to use in the UK, the one sector that prompts the most grumbling is telecommunications.
Broadband services in particular drive Mirror readers to distraction. That’s because of a lack of competition, poor speeds, overcharging and very, very poor customer service indeed. Many readers tell me that there’s no point in moving to another broadband provider because “they’re all the same”.
This is depressing, but I understand. I’m currently with the least worst broadband provider I could find and I just filed a complaint about seven different major flaws with their service. The same goes for mobile phone companies. Too many mergers means that rubbish firm you ran away from is now your service provider again! And readers tell me they don’t want to jump ship in case they get a worse service.
This is pretty depressing, isn’t it?! I’m currently speaking to politicians, regulators and broadcasters about these sectors. Hopefully we’ll start to see some major changes in 2025. But I need all of you to register complaints so we can hammer home that these services aren’t working. However, it’s not all bad! Ofcom has now banned inflation-linked mid-contract price rises. Here’s my guide to what’s happening, how to save some cash and how to negotiate a better deal.
Why does my mobile or broadband contract increase each year?
Mobile and broadband firms reserve the right to raise the price of your contract in April each year. This has traditionally been with inflation-busting price increases. In recent years this deeply unfair contract term has become more controversial as inflation rocketed. Most phone and broadband companies took the rate of inflation and then added an extra 4% on the top of it. That meant prices rose by between 14% to 17% in 2023 – and an average of 9% on top of that last year too.
What do the new rules about mid-term contract rises say?
Ofcom has banned inflation-linked mid-contract price rises from 17 January 2025. However, that doesn’t mean all price rises are banned. The regulator has said that we will all be told in “pounds and pence” about future price rises. That means your new contract will have to spell out what any mid-contract price rise will be when you sign up.
In many cases you can’t get out of your contract without paying a hefty exit fee. However, a few broadband providers have contracts that give you the option of bailing on the contract before the rise is applied without exit fees. So when you get your notification about price rises, check to see if this is an option.
How much are broadband and mobile phone contracts going up by?
Though we are still waiting for the final details from all broadband and mobile phone services providers, indications are that prices for new agreements will still increase mid-contract, but at a ‘flat rate’ that isn’t linked to inflation. For new broadband contracts, this fixed rise will be between £3 and £3.50 a month (£36 to £42 a year).
Mobile phone tariff increases for fixed terms are extremely variable. You can check out the proposed rises on the Uswitch website for broadband and mobile phones. However, if you are still mid-way through your old contract, then prices will rise using the old measures.
Most firms have not announced what these rises will be, with some indicating that tiered rates may apply depending on how long your contract has left to run. Working on the current rate of inflation and last years, figures, an increase of 6% to 6.7% seems like the average. MoneySavingExpert.com has a page that’s regularly updated as the new prices are announced.
What about contracts that charge exit fees?
Even though the new rules won’t kick in for a bit, you could still potentially get out of a contract if the business isn’t meeting its side of the deal. If the business has changed key contract terms and conditions, withdrawn services that you regularly use or introduced any other changes to your existing deal, you can ask to leave and have the exit fees dropped. If they say no (and some telecoms departments have notoriously poor customer service, so don’t be disheartened), make a complaint asking why the contract has changed for the worse.
If your broadband speed or mobile phone reception is poor, then tell the firm, take regular signal tests using one of the many free apps online. That way you can demonstrate that there’s a problem the firm should let you go without charging you. If the business is not providing the average speeds or reception it promised, it’s possible to break the contract early.
What else has been announced?
The regulator also revealed that the number of people on social tariffs increased to 506,000 – up from 125,000 in 2023. Yet this is not cause for celebration as that’s barely a tenth of the people who are eligible. Ofcom’s research shows that 7 in 10 people who could be on these cheaper tariffs is completely unaware that they exist.
Social tariffs are designed to provide cheaper broadband services for people on certain benefits. These deals can dramatically reduce your broadband costs. Prices range from around £10 to £20 a month if you need faster broadband speeds for work or keeping in touch with your family and friends.
To get started, contact your broadband provider and ask them about the social tariff deals they offer. You should be able to leave your existing deal mid-contract without having to pay an exit fee. In addition, set up costs should be minimal, there will be no mid-contract price rise and you should be able to leave without a fee too. Check out the full range of offers on the Ofcom website.
Haggle to a better deal!
Evidence suggests that you can get a much better deal with a telecoms provider if you move to a new provider – or if you threaten to leave your existing one when your contract is up. I’d pop your contract end date in to your diary – but a month before it happens. That’s the best time to call your broadband or mobile phone provider and tell them that you are prepared to leave to get a better deal. It helps if you get a few quotes from other service providers to bolster your claims.
While some of the discounts you are offered may sound great, ask the business to send them to you so you can look at the small print. Watch out for deals that last a year or less. These can often drop you back in to very expensive contracts when the deal period ends. Make sure you check the duration of the contract too. A lot can happen in two years so have a think about your life plans.
And avoid the four year contracts that I’ve been hearing whispers about like the plague. You can also ask for service improvements to be thrown in instead of discounts. Think about signal boosters, new routers and service upgrades and extra television channels.
Communications Ombudsman
Don’t forget that you can make a complaint about most mobile phone or broadband problems to the Ombudsman. The largest of the services is the Communications Ombudsman or CISAS.
- Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist
