Under the commitments of the new Telecoms Consumer Charter, companies must give clear information on any future price changes up front
Millions of mobile and broadband customers will no longer be hit with unexpected mid-contract price rises after major telecom providers signed a new commitment today.
Mobile and broadband providers have been banned from linking mid-contract price rises to inflation – instead, customers must be told in “pounds and pence” how much their bill will increase by.
However, some telecom firms have been accused by consumer champions, including Martin Lewis, of making a mockery of the rules, after they announced even bigger mid-contract price rises than what they had previously communicated to customers.
Under the commitments of the new Telecoms Consumer Charter, companies must give clear information on any future price changes up front – so customers will know exactly what they will be paying when they sign up for a new mobile or broadband deal.
There will also be clearer signposting for cheaper social tariffs, which are available to people who claim certain benefits. Ofcom estimates social tariffs could save eligible households up to £220 per year.
The new rules were confirmed today by Chancellor Rachel Reeves and Technology Secretary Liz Kendall, following a roundtable with the UK’s biggest telecoms providers.
But speaking to the Mirror afterwards, the Chancellor refused to rule out getting rid of mid-contract price rises altogether. She said: “Of course, we could legislate but I think this is the right approach.
“We’ve got a voluntary agreement with the companies, which means this comes into force straight away rather than having to go through the process of consultation, legislation, amendments to bills, and then going to the House of Lords, which will take months – and instead, this is coming in straight away.”
The Chancellor vowed to take further action on telecom companies if they go against the agreement and said the government will be “watching closely”.
She said: “We now need to judge the telecoms companies, whether they stick to the contracts that they have signed up to with the government – and if they don’t, of course we will come back and look at what more could be done.
“But I am confident after the conversations we’ve had today that those price hikes beyond what is already in contract, won’t continue. The ball is now in the court of the telecoms companies.”
The Chancellor told the Mirror: “Lots of customers were very angry last year when they saw their bills increase beyond anything that had been in the contract. It might have been in the small print, but it was well beyond what people had expected.
“As a result of that, I wrote last November to the telecoms companies and urged them to rule out these sort of hikes in the future.
“Today, the culmination of that engagement has resulted in the telecom companies signing a charter with the government to rule out those sorts of bill hikes mid-contract in the future.
“That is good news for consumers, who are rightly angry about what happened to their bills last year and the fact that this is voluntary, means we can get on and deliver it straight away, rather than having to go through the process of consultation and legislation.”
When asked if she believed telecom firms had been doing enough to support customers, Ms Reeves said: “They obviously haven’t done enough which is why we’ve got them to sign this charter, so the types of price hikes we saw last year can’t happen again.”
It comes as Sir Keir Starmer faces increased pressure to quit as Prime Minister following his decision to appoint Lord Mandelson as US ambassador last year.
Ms Reeves told the Mirror that the Prime Minister has her “full support” as Chancellor. She said: “I’m proud of what this Prime Minister is leading and the Government he is leading, and proud to be part of it.
“But I certainly feel, this week, the parliamentary party, the cabinet and our members, have rallied behind our leader and we want to work with him to deliver for our country – and that’s the job we were elected to do.”
How to save money on your broadband and mobile bill
If you’re out of contract, then it is likely you are probably paying too much for your mobile and broadband. To save money, start by comparing prices online.
Check how many minutes and texts you’re currently using, or your broadband speed, as many people pay for higher allowances that they don’t end up using.
You can then switch to the new provider, or try haggling your current provider for a better deal. If you claim benefits, check if you are eligible for a cheaper social tariff.
