The rule changed on 17 January 2025
Providers cannot offer new phone, broadband or pay-TV contracts with core subscription price rises linked to inflation or expressed only as a percentage. Where a contract includes specified rises, they must be set out clearly in pounds and pence before sign-up.
The old formula was familiar: inflation plus a further percentage, usually applied each spring. A customer signing an 18-month or 24-month contract could not know the actual amount because the future inflation figure had not yet been published.
Ofcom’s revised rules removed that uncertainty from new contracts. They did not ban in-contract increases altogether. Providers can still include them, but the customer should be shown the amount and timing in a form that can be understood before agreeing.
What providers must show
Before the customer signs
- the main monthly subscription price in pounds and pence;
- the amount of each specified in-contract increase in pounds and pence;
- the date or point at which each increase will take effect;
- the information prominently and transparently, not buried in general terms; and
- a contract summary and contract information containing the required details.
A term saying the bill will rise by 4% does not meet the new approach for a contract entered into from 17 January 2025. Nor can the core subscription price be linked to an unknown future inflation rate.
The new rule does not limit the size of a specified rise
A fixed pounds-and-pence increase can still represent a substantial percentage of a low introductory price. Consumers should calculate the amount paid across the whole minimum term, not compare only the first monthly figure.
Older contracts can be different
Contracts entered into before 17 January 2025 may still contain inflation-linked or percentage-based terms. Whether a particular increase is permitted depends on the contract and the rules applying when it was agreed.
A renewal or new minimum term after the rule change should be assessed as a new contract. Do not assume that an older price-rise clause automatically carries across without fresh information.
What if the increase was not properly agreed?
Ofcom says that where a contract does not specify how much the price can rise, or the provider increases the price by more than the agreed amount, the provider must give at least 30 days’ notice and allow the customer 30 days to leave without paying an exit fee.
The same principle can apply to certain contractual changes that are not exclusively beneficial, are not purely administrative with no negative effect, or are not directly required by law.
Check a disputed increase
Find the contract summary and information supplied immediately before sign-up.
Identify the core monthly price and every stated increase date and amount.
Compare the notice and new bill with the agreed figures.
Check whether the contract began before or after 17 January 2025.
Complain in writing if the amount, timing or presentation does not match what was agreed.
Ask specifically whether you have a penalty-free right to exit.
Out of contract is different
Once the minimum commitment ends, a customer may move to an out-of-contract price or lose an introductory discount. Providers must send end-of-contract notifications and information about available deals, but the fixed-term exit-fee question may no longer arise.
This is often the point at which switching or renegotiating has the greatest effect. One Touch Switch allows the new provider to manage most residential broadband and landline switches between networks.
Look beyond the monthly price
Compare the full commitment
- the total paid before and after every scheduled rise;
- setup, activation, equipment and delivery charges;
- the length of the minimum term;
- included data, speed, calls and television services;
- exit charges and equipment-return obligations; and
- the price that applies when the minimum term ends.
If the complaint is unresolved
Use the provider’s formal complaints process and retain the contract summary, order confirmation, notices and bills. If the complaint reaches deadlock, or remains unresolved after eight weeks, the customer may be able to use the provider’s approved alternative dispute resolution scheme.
The ConsumerWise verdict
The rules now provide price certainty, not necessarily price stability. A provider can still write an annual cash increase into a new contract, but the customer should be able to see exactly how much it will add and when.
The best comparison is therefore the total cost across the minimum term. A cheap first month can conceal a much less competitive contract once setup charges and scheduled increases are included.
Official sources and further guidance
- Ofcom: telecoms price rises and consumer rightsCurrent consumer guidance, updated in June 2026.
- Ofcom: protecting consumers from uncertain inflationThe rules that took effect on 17 January 2025.
- Ofcom: switching providerGuidance on switching and One Touch Switch.
- Ofcom: social tariffsEligibility information and available provider tariffs.
Social tariffs
Some providers offer lower-cost social tariffs to eligible customers receiving particular benefits. Ofcom says an eligible customer should be able to move to a social tariff offered by their provider without paying a penalty, even while in contract.