Ofcom Finally Bans Confusing TV & Broadband Price Hikes

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In a major decision announced today, Ofcom has finally outlawed the confusing practice of inflation-linked price rises in TV, broadband, and mobile contracts.

Starting January 17, 2025, providers must spell out any future price hikes in pounds and pence when you sign up, rather than relying on unpredictable inflation rates plus extra percentages.

This move comes after months of consultation and aims to bring much-needed clarity to consumers. No more scratching your head over CPI, RPI, or sneaky additional percentages.

Instead, you’ll know exactly what you’ll be paying throughout your contract, whether it’s for your favourite TV shows, broadband, or a mobile plan.

But what does this really mean for your wallet? Let’s unpack Ofcom’s decision and its impact.

The Pricing Puzzle

If you’ve signed up for a pay-TV, broadband or mobile contract in recent years, you’ve likely encountered the confusing world of inflation-linked price rises.

A couple with bills and a calculator

Currently, most major providers (such as Sky and Virgin Media) include clauses in their contracts that allow them to increase prices annually based on inflation rates (usually CPI or RPI) plus an additional percentage – typically around 3.9%.

For example, you might sign up for a TV package at £30 per month, only to see it increase to £33.72 the following April due to a 5.4% CPI rate plus 3.9%.

And because you can’t predict inflation in advance, there’s no way to predict how much you’re going to pay next year. Plus, since you’re going to be under contract – you won’t be able to leave, no matter how high the increase is.

Sky Price Increase collage

Sound confusing? That’s because it is, and it’s precisely what Ofcom aims to address.

The New Rules: Clarity is King

Under the new regulations published today, providers will be required to spell out any future price increases in pounds and pence at the point of sale.

This ‘£/p requirement’ is at the heart of Ofcom’s new rules, along with some more new guidance:

Upfront Information: Before you sign a contract, providers must clearly tell you:

  • The initial monthly price (Core Subscription Price)
  • Any future price changes, in pounds and pence
  • The exact dates when these changes will take effect

Signing a contract

No More Percentages: Inflation-linked increases or percentage-based rises are explicitly prohibited. So, you won’t see terms like “CPI plus 3.9%” anymore.

Prominence: This pricing information must be displayed prominently. For online sales, it should be as visible as the initial price. During phone or in-store sales, staff must explain it clearly.

Contract Documents: The same clear pricing details must appear in your Contract Information and Contract Summary documents.

Bundles Covered: If you’re getting a bundle of services (like TV, broadband, and mobile together), the rules apply to the entire package.

Flexibility for Providers: While providers can’t use inflation-linked increases, they’re still free to set prices and include fixed price rises – they just need to be clear about it upfront. Unfortunately, this means mid-contract price increases are NOT being banned – just those that are linked to inflation and are not set up front.

Couple watching smart TV in living room 1200

Out-of-Contract Customers: These rules apply to new contracts, not to customers who are out of their minimum contract period.

Multiple Price Rises: If a provider plans several price rises over the contract period (which can certainly happen now that many contracts are for 24 months), they must detail all of them upfront.

Best Tariffs: Providers must inform you about their best available tariffs, including:

  • The cheapest tariff based on your current services
  • The cheapest tariff available to any customer
  • A tariff based on your usage patterns
  • For mobile users, the cheapest SIM-only deal if you’re on a handset-included plan

End-of-Contract Notifications: Providers must send you a notification 10-40 days before your contract ends, reminding you of these pricing details and your options.

Annual Notifications: If you’re out of contract, you’ll receive an annual notification with similar information.

When Are We Going To See These Changes?

The road to today’s decision has been a long one. Ofcom launched its consultation on banning inflation-linked price rises in December 2023, seeking input from industry players and consumer groups alike.

Today marks the regulator’s official decision to implement the ban, following months of deliberation and analysis.

Ofcom UK logo
Photo: Deposit Photos / Rafapress

However, the changes won’t happen overnight. Providers have been given a six-month implementation period to update their systems, retrain staff, and adjust their pricing models.

As a result, these new rules will come into effect on January 17, 2025, applying to all new contracts signed from that date onwards.

It’s also important to note that existing contracts will not be affected; if you’re currently in a contract with inflation-linked price rises, those terms will continue to apply until your contract ends or you decide to switch to a new deal.

BT Group Jumps the Gun

Interestingly, BT Group (which includes BT, EE and Plusnet) has already implemented a similar pricing model, getting ahead of Ofcom’s official deadline.

Since April 2024, new and re-contracting BT and EE customers have been told exactly how much their bills will increase each year. For example:

– EE Mobile customers: £1.50 per month increase
– EE TV customers: £2 per month increase
– BT/EE Broadband customers: £3 per month increase

This early adoption by a major player in the market gives us a glimpse of what to expect when other providers follow suit.

What’s particularly noteworthy for TV enthusiasts is that EE’s £2 monthly increase applies only to the base TV package. So, even if you’re subscribed to multiple add-ons, your total increase remains £2 per month each year.

The Bottom Line

The changes announced today won’t necessarily mean lower prices – in years when inflation is low, the new pound-and-pence increases might actually be higher than they would have been under the old system.

However, they will give you a much clearer picture of what you’ll be paying throughout your contract. No more nasty surprises when inflation spikes or trying to decipher complex pricing formulas.

Sadly, mid-contract price increases will certainly stay in our lives – but at least you’ll know the amounts in advance and be able to budget for them better.

And, remember that for TV – you don’t even have to sign up for long-term contracts anymore.

Sky offers rolling contracts with Sky Stream, Virgin Media offers its own free Stream box (though you’re still contracted to their broadband service), and of course – all the streaming services (such as Netflix and Disney+) offer rolling contracts as well.

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4 thoughts on “Ofcom Finally Bans Confusing TV & Broadband Price Hikes”

  1. 100% Chrispy I agree fixed price for 12 or 24 months simple what’s so hard to understand
    Price increases after contract end but that is not what they want because they tiey you in a long contract they can have as many as 3 price increase during the contract
    They won’t do 6 or 12 months because they won’t have the chance to rip you off you will leave
    Ofcom should also include if you get a price increase in contract you can leave
    Penelty Free

    Reply
  2. What a real missed opportunity, but as expected from the regulator in the pocket of the suppliers.
    Mid contract rises should be banned simple as that. If you agree to sign up for 24 months for example you should pay the same price all the way through. I don’t understand why that is a difficult concept for Ofcom to understand.
    If BT/Sky etc are not happy then do 6 month or 12 month contracts and change the price then, but at least users could leave.

    Reply
    • Absolutely – I totally agree. Unfortunately they all just want more and more of your money anyway they can get it!

      One of the reasons they all want to move content to streaming only – you either watch the moronic adverts or pay extra to skip as you won’t be able to record and time-shift anymore.

      The BBC is not any better as they seem to have as many “in house” adverts between programs as the commercial channels and I notice during Wimbledon coverage they even peppered them throughout the program!

      Reply
  3. I can understand an inflation rise, but what’s the reason for the “additional percentage” charge? To me, it’s plain theft. What fo these co.paniws charge it for? And don’t say it’s for administration – how expensive is pressing a button on a keyboard? Folks, it’s a rip off, refuse to pay it.

    Reply

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