Broadband and mobile price rises: the pounds and pence rule and when you can leave

What changed on 17 January 2025

From 17 January 2025, Ofcom banned providers from linking mid-contract price rises in new broadband and mobile contracts to a future inflation measure or any percentage. Any rise built into a new contract must now be set out in pounds and pence, prominently, before the customer signs. The regulator acted after finding most customers could not follow inflation-linked terms; its research showed 55 percent of broadband and 58 percent of mobile customers did not understand CPI or RPI. The old system typically added CPI or RPI plus around 3.9 percent each April, which spiked to double digits during 2022 to 2024.

What new contracts cost now

Providers replaced the formula with a flat annual sum, usually applied each April: around 3 pounds a month at Sky, around 4 pounds at BT, EE, Plusnet, Virgin Media and TalkTalk, and around 3.50 pounds at Vodafone for recent contracts. On a 24-month deal a 4 pound monthly rise adds about 48 pounds to the annual bill after the first April. A flat sum hits cheap plans hardest: 4 pounds on a 22 pound package is roughly an 18 percent rise, while the same 4 pounds on a 36 pound package is nearer 11 percent. Ofcom found average broadband prices fell in real terms over the past year, but the flat-rise structure means the cheapest deals feel the biggest percentage jumps.

Which rules apply to your contract

If you signed on or after 17 January 2025, your rise is the fixed pounds-and-pence figure stated when you joined. If you signed before that date, your provider may still apply the old inflation-linked formula until the contract ends; check your original contract summary. Virgin Media and some others ran a dual system, with RPI-based terms on older contracts and fixed amounts on newer ones. The figure that matters is the one written into your specific contract summary, not the provider's current headline policy.

When you can leave without paying

Out of contract: you can switch at any time with no exit fee, and switching is often the biggest single saving. Within contract, a rise properly disclosed in pounds and pence at sign-up is enforceable, so leaving early normally means an exit fee. Where a provider did not make an increase clear at the outset, the rules can entitle you to notice and a penalty-free exit; providers must give at least 30 days warning before any rise. Sky has operated a penalty-free exit around its price-rise notifications; check each provider's specific policy when you get the notice.

How to cut the bill

Diarise your contract end date and switch or renegotiate as it approaches; loyalty is rarely rewarded on price. Ask about the provider's own retention deals before leaving, then compare against the wider market. If you receive Universal Credit, Pension Credit or certain other benefits, ask about a broadband social tariff, which is cheaper and generally exempt from mid-contract rises. Some smaller and alt-net providers advertise fixed prices with no mid-contract rises for the minimum term; weigh coverage and service against the big brands.

Frequently asked questions

Can my provider still raise my bill by inflation mid-contract?

Not on contracts signed from 17 January 2025, which must state any rise in pounds and pence. Contracts signed before that date may keep old CPI or RPI-linked terms until they end.

How much are the fixed rises?

For April 2026, roughly 3 pounds a month at Sky, around 4 pounds at BT, EE, Plusnet, Virgin Media and TalkTalk, and about 3.50 pounds at Vodafone for recent contracts.

Can I leave when the price goes up?

If the rise was clearly disclosed in pounds and pence at sign-up, leaving early usually means an exit fee. If it was not made clear, you may have a penalty-free exit. Out-of-contract customers can leave any time.

How much notice do I get?

Providers must give at least 30 days notice before a mid-contract price rise takes effect.

Am I exempt if I am on a low income?

Broadband social tariff customers are generally exempt from these rises. If you receive Universal Credit, Pension Credit or certain benefits, ask your provider about a social tariff.