Ofcom Telecom Price Rise Rules: What Must Be Shown Before You Sign New

Ofcom Telecom Price Rise Rules Updates: You now have stronger protection against surprise broadband and mobile phone bill increases after Ofcom’s telecom pricing rules took effect.

For new and renewed consumer contracts, providers can no longer use inflation-linked or percentage-based mid-contract price rise clauses that leave you guessing what your future bill will be.

Instead, providers must tell you upfront, clearly and prominently, exactly how much your bill will rise in pounds and pence during your contract and when those increases will happen.

Ofcom Telecom Price Rise Rules: What has actually changed?

The rules apply to new and renewed consumer telecom contracts entered into from 17 January 2025 onwards.

This affects broadband contracts, mobile phone contracts, landline services, pay TV packages and bundled telecom deals.

Providers can still increase prices during a contract, but they can no longer use inflation-linked formulas or percentage-based clauses tied to unknown future inflation rates.

You can read Ofcom’s official guidance here: Ofcom ban on inflation-linked telecoms price rises.

Ofcom Telecom Price Rise Rules: Why these rules were introduced

Many telecom providers previously used price rise formulas linked to inflation measures such as CPI or RPI, often with an extra percentage added on top.

During periods of high inflation, this meant some customers faced sharp increases they had not fully understood when they signed up.

Ofcom concluded that these clauses made it too difficult for you to predict the true cost of a contract.

Ofcom Telecom Price Rise Rules: Who is affected now?

You are affected if you sign a brand-new contract, renew an existing contract, upgrade your package, or agree a new bundled deal.

If your contract started before 17 January 2025, it may still contain older inflation-linked terms until it ends or is renewed.

Once you renew or recontract, your provider should offer terms that comply with Ofcom’s newer pricing rules.

Ofcom Telecom Price Rise Rules: Does this mean your bills will stop rising?

No. The rules do not ban mid-contract price increases entirely.

They change how providers must present those increases. Your provider can still include annual rises, but it must state them in clear cash terms before you agree.

For example, instead of saying your bill will rise by “CPI plus 3.9%”, your provider should explain the increase in pounds and pence.

Ofcom Telecom Price Rise Rules: What should you check before signing?

You should look beyond the starting monthly price.

Check future monthly increases, contract length, early exit fees, setup charges, bundled service costs, roaming charges, handset costs and end-of-contract pricing.

Ask your provider to confirm exactly when increases will happen and what your monthly price will be after each increase.

Ofcom Telecom Price Rise Rules: What if your provider does not explain the price rise clearly?

If your provider fails to explain future increases properly, you should raise a complaint and refer to Ofcom’s rules.

Keep your contract summary, pre-contract information and any screenshots from the sign-up process.

You can also check Ofcom’s guidance on telecom price rises and consumer rights.

Ofcom Telecom Price Rise Rules: Your practical next steps

Check whether your current telecom contract started before or after 17 January 2025.

Review your contract documents to see whether your agreement still contains inflation-linked clauses.

Before renewing, compare the total contract cost across the full term rather than just the introductory monthly price.

If you are out of contract, ask your provider for a deal that clearly states future price increases in pounds and pence.

Keep copies of contract summaries and pre-contract information in case of billing disputes later.

Useful official guidance: Ofcom telecom price rise rules, Ofcom telecom price rise consumer rights, and MoneySavingExpert telecom price rise guide.

People Also Asked…

What changed under the Ofcom rules?

Providers can no longer use inflation-linked or percentage-based price rise clauses in new consumer contracts signed from 17 January 2025 onwards.

Do the rules apply to existing contracts?

Older contracts signed before 17 January 2025 may still contain inflation-linked increases until the agreement ends or is renewed.

Can providers still raise prices during a contract?

Yes. Providers can still apply mid-contract increases, but they must state them clearly in pounds and pence before you sign.

Which services are covered?

The rules cover broadband, mobile phones, landlines, pay TV and bundled telecom services.

What should you check before signing a telecom contract?

Check the full contract cost, future annual increases, contract length, exit fees and the timing of any price rises.