Martin Lewis has issued a warning over a big broadband and mobile bill change THIS WEEK. Ofcom banned mid-contract price rises linked to inflation for phone, broadband, and pay TV contracts starting January 17, 2025, the regulator has said.
This means that providers must set out any price rises in pounds and pence before customers sign up for a new contract. The BBC and ITV star warned: “It still allows them to do above-inflation increases because as long as they tell you what it is, they can put it up £20, but it is an improvement in terms of transparency.”
He added: “If they don’t tell you the pounds and pence figure, you can leave when they announce a price rise. You can breach your contract, you’ve got 30 days to go. If you do want to leave them, or if you want to haggle to stay, that is your opportunity.”
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From 17 January 2025, phone, broadband and pay TV providers will be prohibited from including inflation-linked, or percentage-based, price rise terms in all new contracts. This means consumers will be able to enter into contracts featuring £/p information ahead of annual price rises in 2025.
Some providers require this time to make the necessary changes to their processes and business plans. 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.”