Government signals continuity on telecoms price hikes

The government has confirmed it has no plans to ban mid-contract price rises on broadband, mobile and landline services. Ministers are instead relying on clearer contract rules and a 30-day window for customers to leave when they face unexpected bill increases.

For UK households already juggling higher costs, this means mid-contract bill hikes are here to stay for most big-brand deals. The main escape routes are choosing providers that guarantee fixed prices, or using switching rights when a provider goes beyond what was agreed at sign-up.

Government stance on in-contract price rises

The issue reached the House of Lords after months of concern about rising broadband and mobile bills. Asked what steps the government is taking to keep telecoms price rises fair, Baroness Lloyd of Effra confirmed that ministers have “no plans to ban in-contract price rises”. Instead, she stressed that customers have a right to leave penalty-free for 30 days if a provider announces an unexpected increase.

That right is important. It applies when a provider changes the contract in a way that was not clearly set out when you signed up. In simple terms, if a company introduces a new pricing policy mid-way through your term, or increases prices beyond what was agreed, you should be able to walk away without early termination fees.

At the same time, the government has asked Ofcom to look again at whether the current 30-day notice and exit period is long enough. The question for the regulator is whether people have enough time to read the notification, compare alternatives and actually switch before the higher bills kick in. What ministers have not done is ask Ofcom to outlaw mid-contract rises altogether.

This sits alongside earlier letters from the Chancellor, Rachel Reeves, and the Science, Innovation and Technology Secretary, Liz Kendall, pressing telecoms bosses to treat customers fairly on in-contract rises. Those letters asked providers not to charge more than customers initially agreed and pushed Ofcom to produce an interim review of the new rules. But the latest statement from the Lords confirms that, for now, any change will be about how rises work, not whether they exist.

Ofcom’s pounds-and-pence rules

The current situation stems from a major change in how mid-contract rises are allowed to work. From January 2025, Ofcom stopped providers from linking in-contract price increases to inflation indexes such as CPI or RPI. Instead, any rises built into a new contract now have to be set out clearly, in pounds and pence, at the point of sale, along with the date they will apply.

Previously, many contracts used formulas such as “CPI plus 3.9%”, which left customers exposed when inflation spiked into double digits. It also made it difficult to know what your bill would be a year ahead, or to compare one provider’s approach with another. The new regime is meant to reduce that uncertainty by giving you a fixed figure, such as “£3 extra per month from April each year”.

Crucially, the rules do not stop providers from using in-contract rises. They simply demand clarity and certainty. If a rise is written into the contract in pounds and pence, and explained properly when you sign up, then the provider can apply it and you will not normally have the right to leave without penalty when it happens.

Ofcom’s separate guidance to advertisers also now expects firms to display these increases prominently in marketing material, so they are not buried in the small print. In theory, that should make it easier to spot which deals include in-contract rises and which do not. In reality, you still need to read the tariff details carefully, because different brands now use different patterns of fixed increases.

How big brands structure their annual hikes

Most major broadband and mobile brands have now moved to flat annual increases. Instead of a percentage tied to inflation, customers see a fixed monthly rise, commonly somewhere between £3 and £4, added once a year from a specific date, often in spring.

On paper this is simpler, but it creates a clear fairness problem. A £4 monthly rise on a £20 budget broadband plan is a 20% increase in one hit. The same £4 applied to a £100 bundle with premium TV and multiple SIMs is only 4%. The structure means customers on cheaper deals, including some who are more price-sensitive, carry a heavier percentage rise.

Recent examples show how this plays out. Several big brands have published tables showing future prices, with scheduled increases already baked in for April 2026 and beyond. Customers signing new contracts now can see exactly how their monthly bill will step up over time, but they have limited room to avoid it unless they move to a provider with a different approach.

There have also been flashpoints. Virgin Media O2’s mobile side drew criticism for moving customers onto new, fixed cash increases which were bigger in percentage terms for cheaper airtime plans. The O2 policy triggered public concern and prompted direct letters from ministers. For now, though, these fixed rises remain within the rules as long as they are clearly stated.

Big providers argue that they need these increases to cope with higher network, energy and regulatory costs, and to fund roll-out of full fibre and 5G. Consumer advocates counter that too much of the risk is pushed onto customers, especially those locked into longer-term contracts who see their bills climb every year without getting extra speed or new features in return.

Fixed-price contracts from smaller providers

While the best-known brands lean on annual rises, a smaller group of ISPs still offer fixed-price contracts with no mid-contract increases. These deals are not as widely available, but they matter for readers who want predictable bills.

Zen Internet is the standout example. Its Contract Price Promise guarantees that the monthly price you agree at the start of your contract stays the same for the full minimum term. Zen has also been vocal in calling for a complete ban on mid-contract price hikes across the industry, arguing that customers should not have to watch their bills climb during a fixed-term agreement.

IDNet takes a similar approach on many of its full fibre products. Its professional full fibre packages, based on Openreach and other wholesale networks, are sold with “no mid contract price rises” as a core feature. Customers pay the same monthly price for the stated term, typically 18 months, and are not exposed to annual uplifts once the contract starts.

Some full fibre altnets also use fixed pricing as a selling point. Smaller operators promote simple, 12-month contracts with no in-term rises to stand out from the larger brands. Where these networks are available, they can offer a clear alternative for households that value bill certainty over introductory discounts.

However, fixed pricing is not universal among smaller providers. Hyperoptic, which previously campaigned against mid-contract rises, has now introduced annual £3 per-month increases for new contracts starting from April 2026. Existing customers and those on its Fair Fibre social tariff are shielded from the new pattern unless they move onto a new deal. Community Fibre has adopted £2 per-month annual increases from April 2026 on many longer contracts, although some plans remain fixed until set dates.

The result is a spectrum of offers. At one end are contracts with full price freezes. In the middle are deals with modest pounds-and-pence rises. At the other end are the larger fixed increases used by major brands. Comparison sites are starting to add filters for “no mid-contract price rise”, but you still have to check each provider’s terms to be sure.

Protecting yourself when bills go up

With a ban off the table, the main protection for customers is being informed and prepared to act.

The first step is always to read the contract details before you sign. Look specifically for any line that talks about annual price rises, and make sure you understand the amount in pounds and pence and the date it will be applied. If the contract says your price will increase by a fixed cash amount each year, you should assume that will happen and budget accordingly.

If your provider introduces a change that goes beyond what is written in the contract, you should receive a notification explaining the new price and your right to leave without penalty. That 30-day window is your opportunity to compare other deals, check whether any fixed-price or no-rise contracts are available in your area, and decide whether to switch.

Social tariffs are an important option if you receive certain benefits. These discounted packages usually keep prices fixed and are not subject to mid-contract hikes, which gives more certainty for people on lower incomes. Awareness is still poor, so it is worth checking whether your current provider, or a rival, offers a social tariff that you could move onto.

Switching itself has become easier. One Touch Switching is being introduced across broadband and home phone to move customers between providers with less hassle, while Text-to-Switch lets you change mobile network by sending a simple code request and handing that code to your new provider. In both cases, the new provider takes the lead on the move.

The bigger picture is clear. Mid-contract price rises are not going away, and the government is not planning to ban them. If you want a contract where the monthly price does not change during the term, you need to seek out providers that guarantee it, or use social tariffs where you qualify. For everyone else, the safest approach is to treat every price rise notification as a prompt to check whether you can get a better, more predictable deal elsewhere.

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