Press release

Which? urges telecoms firms to immediately scrap ‘unconscionable’ mid-contract price hikes

Which? is calling on telecoms firms to halt any plans to press ahead with ‘unconscionable’ broadband and mobile price hikes in April, even after the industry regulator found the practice harms consumers and set out proposals to ban it
4 min read
Press Team

Ofcom recently proposed a ban on the practice of inflation-linked mid-contract price rises, saying that they cause ‘substantial consumer harm’, but this will not come into effect before the next wave of expected hikes in April 2024.

Many providers appear ready to brazenly proceed - with next week’s CPI inflation announcement set to fire the starter gun on announcements of the latest round of eye-watering hikes for consumers. Many may have already endured increases of up to 17% last year.

Which? has today (Thursday, 11 January) written an open letter to big broadband and mobile providers - BT, EE, O2, PlusNet, Shell Energy Broadband, TalkTalk, Tesco Mobile, Three, Virgin Media and Vodafone - urging them to cancel any unfair and unpredictable price hikes planned for April this year. The letter has been published as a full-page national newspaper advert this morning. 

Currently millions of broadband and mobile customers who are under contract are trapped and at the mercy of providers, facing a lose-lose choice between increases that could leave some customers struggling to afford these essential services or facing punitive exit fees - potentially of hundreds of pounds - to leave. 

During a cost of living crisis when many households are struggling to make ends meet, Which? estimates that telecoms firms stand to generate more than £400 million from April’s mid-contract price hikes alone. 

The consumer champion is calling for people to be given certainty about the total cost of their broadband and mobile contract when they sign up. 

Rocio Concha, Which? Director of Policy and Advocacy, said:

“Millions of people face price rises they could never have predicted when they signed broadband or mobile contracts and may struggle to afford. Given the regulator has found inflation-linked mid-contract price rises harm consumers and set out proposals to ban them, it would be unconscionable for telecoms providers to proceed with these hikes. 

“Telecoms firms must do the right thing - scrap their plans for unfair price hikes this April and end unpredictable in-contract price increases once and for all, so everyone can understand what they will pay when they sign up to a contract for these essential services.”

Notes to editors

  • Spokespeople for broadcast: Which? spokespeople are available for broadcast interviews on this story.

  • The Consumer Prices Index (CPI) is due to be announced on Wednesday 17th January.

Notes on how Which? made the calculations for the more than £400 million figure:

  • Which? carried out a nationally representative survey of 2,071 UK adults between 3rd and 5th November 2023. 
  • Respondents were classified as experiencing an inflation-linked mid-contract price rise (MCPR) in April 2024 if (i) they were responsible for paying their mobile network bill or their household’s broadband bill, (ii) they said they were within the minimum term of their contract (or unsure whether they were), (iii) their contract start date and contract length meant they will be in contract post-April 2024, and (iv) they are with a provider that applies inflation-linked MCPRs.
  • Which? estimates that between 28 per cent and 32 per cent of UK households are currently in a broadband contract that will experience a MCPR in April 2024, with an average estimate of 30 per cent. Based on the survey and the ONS estimate for the number of UK households in 2022 of 28.2 million, this scales up to between 7.8 million and 8.9 million UK households currently in a broadband contract experiencing a MCPR in April 2024, with an average estimate of 8.4 million.
  • Which? estimates that between 24 per cent and 28 per cent of UK adults are currently in a mobile contract that will experience a MCPR in April 2024, with an average estimate of 26 per cent. Based on the survey and the ONS estimate for the number of UK adults in mid-2021 of 53.2 million, this scales up to between 12.7 million and 14.8 million adults currently in a mobile contract experiencing a MCPR in April 2024, with an average estimate of 13.7 million. 
  • Additional monthly costs for those experiencing MCPRs were calculated by multiplying respondents’ current monthly contract bill by the price rise their provider applies (e.g. CPI + 3.9%). 
  • The total additional cost each respondent will experience across their contract term can be calculated by multiplying their additional monthly cost by the number of months remaining on their contract post-April 2024. 
  • Using estimates of 3.9% for January's CPI inflation and 5.3% for RPI inflation, in line with the ONS estimates for November 2023 which were published on 20th December, gives a total estimate of the increase in bills from April for all customers of £446m, of which £245m is from mobile contracts and £201m from broadband contracts. 

Which? ‘The Right to Connect’ campaign

Access to the internet has become a basic necessity to life in the 21st century – for everything from work and school to socialising, shopping, banking, and accessing essential government services. Which?’s ‘The Right to Connect’ campaign is calling for clearer and fairer pricing for telecoms customers, because when it comes to basic necessities like a reliable mobile or internet connection, consumers deserve clarity.

About Which?

Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen. As an organisation we’re not for profit and all for making consumers more powerful. 

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