We’ve estimated that 8.4 million UK households are currently in a broadband contract that will be subject to an inflation-linked mid-contract price rise in April 2024. This will see broadband customers pay an estimated extra £221 million to providers.
Meanwhile, an estimated 13.7 million UK adults are currently in a mobile contract that allows for an inflation-linked mid-contract price rise in April 2024. This means mobile companies will generate an estimated £267 million once prices have increased.
We are calling on Ofcom to ban the practice of inflation-based mid-contract price rises.
Connectivity an essential service
Affordable mobile and broadband connection is essential for day-to-day modern life. everything from online banking and schoolwork, to keeping in touch with family and working from home, depends on reliable connectivity.
This makes the upcoming price increases particularly harmful for consumers, as these services are not something that can be cut back on, even during a cost of living crisis when many are looking to save wherever possible.
Which?, along with Citizens Advice, have written to Ofcom calling on the regulator to ban this practice in its upcoming review of mid-contract price hikes.
For far too long, providers have been unfairly allowed to place the burden of managing inflation risk onto their customers. This makes it impossible for consumers to choose the right contract for them and manage their household budgets, as they do not know what the total cost of the contract will be upfront.
Which? campaign calls for end to unpredictable price hikes
Ofcom’s upcoming review is a clear opportunity for the regulator to finally ban these unjust hikes and to ensure that the telecoms market offers predictable prices and effective competition.
Which? has also launched ‘The Right to Connect’ campaign, calling on all providers to do the right thing and stop this practice ahead of Ofcom’s final decision, to ensure that customers are not impacted by similar unpredictable price rises next April.
Rocio Concha, Which? Director of Policy and Advocacy, said:'From working and school to online banking and access to information, a good broadband and mobile connection is essential to everyday life.
'That’s why Which? is calling on Ofcom to ban these unpredictable mid-contract price hikes and give people certainty about exactly how much their contract will cost when they sign up.'
source https://www.which.co.uk/news/article/telecoms-providers-2024-price-rises-awk0h6A96dET