A new mobile and broadband bill law takes hold in the UK TODAY. Millions of consumers will be protected from “nasty surprises” from Friday as new rules take effect that mean telecoms firms must tell people upfront – in “pounds and pence”.
It means mobile phone, broadband and pay-TV companies are now banned from imposing mid-contract price increases linked to unknown future rates of inflation. Since the rule changes were announced last year, all major providers, including BT, Vodafone, Virgin Media O2, Three, and EE, have confirmed changes to new mobile and phone contracts.
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.”
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Ofcom said: “From today, 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.” Ofcom gave a sample scenario of an individual taking out a £30-a-month mobile phone contract. Until now, their contract might have stated that the monthly cost “will increase every April by the consumer price index rate published in the previous December, plus an additional 3.9%”.
From Friday, the contract may typically state that the monthly price is “£30 until 31 March 2025, increasing to £31.50 on 1 April 2025 [and] £33 on 1 April 2026”. It comes as Martin Lewis, 52, gives his verdict on the shake up.
“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,” Mr Lewis said.