Ofcom cracks down on mid-contract price rises 


News 

The new rules are designed to make pricing easier for customers to understand 

Starting today, UK telecom providers must clearly display any future price increases in plain monetary terms at the point of sale, following new regulations introduced by Ofcom.  

The rules are designed to eliminate confusion around mid-contract price hikes, and help customers make better-informed choices. 

In the past, telecom companies often linked price rises in their contracts to inflation rates, leaving customers uncertain about their bills. The lack of clarity made it difficult for consumers to compare deals and calculate long-term costs.  

Now, providers are required to present any planned price increases in pounds and pence and make this information prominent at the time of purchase. Providers must also inform customers of when price changes will occur. 

“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,” said Natalie Black CBE, Ofcom’s Group Director for Networks and Communications in a press release. 

The updated rules aim to encourage competition and provide consumers with a wider range of contract options. Some providers now offer fixed-price agreements, while others include clauses for price increases. For contracts with unclear hikes, telecom companies must provide at least 30 days’ notice and allow customers to cancel penalty-free.  

Ofcom also highlighted the increased availability of social tariffs, which cater to low-income households. These affordable packages do not include mid-contract price hikes and are available to those receiving some benefits. Over half a million customers are already using social tariffs, though Ofcom suggests that millions of eligible households are still missing out on social tariffs as public awareness around thr packages are low 

The push for greater transparency comes just after of a series of Advertising Standards Authority (ASA) rulings against major UK telecom providers, including BT, EE, Plusnet, TalkTalk, Virgin Media, and O2. Last year, the ASA found that these companies’ ads failed to adequately inform customers about potential mid-contract price rises, violating stricter guidance introduced in late 2024. The watchdog’s rulings criticised the use of small print and vague language, which obscured key pricing details, misleading consumers. 

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