When setting up a new broadband, TV or mobile contract you might notice a clause outlining mid-contract price rises. Your contract will let you know that you should expect your bills to go up before the end of the minimum commitment.
However, many customers are still left with questions. What are mid-contract price rises? How is the price rise determined? Most importantly of all, is there a way to avoid your bills going up?
What are mid-contract price rises?
Most telecom companies – internet, TV and phone suppliers – include a clause in their contracts that allows them to raise their prices once a year. This means that they can increase the monthly price their customers pay – even for those under contract.
When do prices change?
Mid-contract price rises apply from the 1st of April every year. In an 18-month broadband contract – the shortest most broadband suppliers offer – you could see your price rise twice.
How much will my bills increase?
The increase is based on inflation. It is intended to reflect the increase in costs that suppliers face throughout the year.
As inflation varies from year to year, so have mid-contract price rises, with customers in 2024 facing increases of up to 8.8%. This makes it difficult to estimate how much your contract will cost or to compare suppliers.
However, the law around mid-contract price rises has recently changed.
The new laws around mid-contract price rises
Ofcom, the UK telecoms regulator, has introduced new legislation that will apply to all internet, TV and mobile contracts starting from the 17th of January 2025. After this date, any new contracts must show the details of mid-contract price rises at the point of sale and ‘in pounds and pence’.
This means customers can calculate exactly what they’ll spend over the length of the contract, rather than a potentially confusing percentage or a vague reference to the fact that ‘prices may rise’.
Overall, this is expected to make comparison shopping and budgeting simpler for customers. However, suppliers are concerned about losing out if inflation rises more than expected – and customers could lose out if inflation rates are lower.
Which internet providers don’t increase prices?
Some internet providers commit to keeping their pricing the same throughout customer contracts. These tend to be smaller, customer-focused brands looking to offer an alternative to major suppliers.
One is Connectivity, which offers wireless 4G and 5G broadband packages with unlimited usage. Their prices remain fixed throughout 12, 24 or 36-month customer contracts. In comparison, Vodafone Gigacube, one of the UK’s biggest 5G internet providers currently raise their existing customer’s prices by £3 a month every year.
Another provider that says no to mid-contract price rises is the full-fibre brand Hyperoptic. They guarantee prices will stay fixed during their 12 and 24-month contracts as part of their commitment to fair, transparent pricing.
How to avoid mid-contract price rises
If you want to avoid a price rise your best option is to choose a supplier who guarantees fixed prices. Otherwise, you will likely be charged an exit fee if you switch from your current provider early, even if your bill goes up.
Until January 2025, companies can still obscure their price rises with phrasing such as ‘prices may increase’, or by showing an estimated percentage rise rather than a concrete figure.
If your prices do rise in April, you might be able to exit without a penalty. Check out our guide to cancelling broadband without an exit fee for more information on all the UK’s biggest suppliers.
