New mobile and broadband rules kick in from TODAY as millions set to face ‘unfair’ bill rises

NEW mobile and broadband rules set to be introduced today could see millions facing "unfair" bill rises.

From today (January 17) telecoms firms must set out mid-contract price rises in pounds and pence, following a ruling from regulator Ofcom.

The ruling ends the practise of providers linking mid-contract increases to inflation figures.

Previously customers' monthly subscription prices would increase every year based on inflation plus an additional 3.9%.

Under the new rules broadband and mobile prices can still be increased mid-contract, but any increases must be clearly set out in price and pence at the time a contract is signed.

Under the old rules customers had faced hikes of up to 8.8% in 2024 — adding as much as £50 to bills.

And when inflation hit a 41-year high in October 2022 some customers saw their bills rise by up to a staggering 17.4%.

Those customers would have welcomed the new pricing structure, which will cap price rises at between £1 and £3 a month.

Ofcom said the increases had demonstrated how the old system had “unfairly” put the burden of shouldering inflation costs onto customers.

An Ofcom spokesperson said: "Inflation might be low now, but as we've seen in recent years, it can be incredibly volatile, and we don't think consumers should bear that risk.

"Our intervention means customers will have certainty and clarity upfront about the prices they will pay, so they can compare offers and select the best deal for them."

However, experts have said that while consumers will not be at risk of dramatic increases, the change will also mean they may not benefit if inflation remains steady or falls.

For example, if you pay £24.99 a month for broadband and your contract increases by £3, that is costlier than what it would be with an inflation-based rise of 6.5% (based on November inflation of +3.9%), which would equate to approximately £1.62, explained to Andrew Ferguson, editor of thinkbroadband.com.

This could change for those on more expensive contracts. For a £59.99 a month contract, a £3 rise works out better than an inflation-based rise of 6.5%, which would see the cost increase by £3.89.

Andrew said this could mean those on entry-level broadband or mobile contracts, often individuals from lower-income households, could end up paying more proportionally than those on premium packages. 

Consumer rights expert, Martyn James added: "It's deeply unfair that businesses have opted to hit those who are struggling the most with price hikes - particularly when they have failed to promote the much cheaper social tariffs that most people in need still haven't heard of."

How much will your contract price increase by?

BT, which also owns EE and Plusnet, said that from March 2025, the price of mobile contracts will rise by £1.50 a month and broadband tariffs by £3 a month.

EE TV customers will have to pay an extra £2 a month.

But, the provider has assured vulnerable customers on EE Basics or BT Home Essentials contracts that they will be exempt from any price rises.

Plusnet will also increase its broadband price by £3 per month from the end of March.

Vodafone mobile phone customers will see their bills rise by £1.80 a month while Home Broadband customers will see prices hiked by £3.

Vodafone has said that price increases will not be applied to customers who are identified as financially vulnerable or those on social tariffs.

In April TalkTalk customers will see the monthly amount they pay for their broadband increase by £3.

Three has said broadband increases will be capped at £2 and mobile prices between £1 and £1.50 depending on the data allowance.

Tesco Mobile said someone on a £14.99 a month a deal would see their monthly contract price increase by 90p in April.

While, customers on a £30 a month deal will see their basic monthly price increase by £1.80.

These increases suggest that the typical cost of a customer's contract will rise 6% from April 2025.

Last year the best and worst broadband providers for customer complaints were been revealed by the regulator.

Research by Go Compare has also found that 9.5 million households are paying for higher broadband speeds than they need.