Why mobile and broadband bills are going up - Martyn James

The good news is the rules around “mid-term contract price increases” have changed, so these bill hikes won’t be as large in the future. But as is so often the case, it’s not all clear cut. Here’s my guide.

Why do mobile or broadband contracts go up each April?

Mobile and broadband firms reserve the right to raise the price of your deal each year. In the past this has involved inflation-busting price increases.

Regulator Ofcom has banned inflation-linked mid-contract price rises from 17 January 2025. However, that doesn’t mean all price rises are banned.

If you sign up to a new contract, you will now be told “in pounds and pence” about future price rises. In other words, your bills can increase each year, but you will be told up front by how much – and the price rise won’t be linked to inflation rates.

If you are mid-contract, this is where watching out for those letters can save you some cash. A few broadband providers have contracts that give you the option of getting out of the contract before the rise is applied without paying an exit fee. So when you get your notification about price rises, check to see if you can switch without a penalty.

How much are broadband and mobile phone contracts going up by?

For new broadband contracts, fixed rise contracts are around £3 to £3.50 a month (£36 to £42 a year). Mobile phone increases hover around £1 to £1.80 each month.

However, if you are still midway through your old contract, prices will rise by higher amounts, linked to the rate of inflation. Each business has a different price increase, but on average, prices will go up by 6.4 per cent for broadband and mobile phone contracts. Uswitch has useful comparison tables for broadband and mobile phones.

What about contracts that charge exit fees?

If a business has changed key contract terms and conditions, withdrawn services that you regularly use or introduced any other changes to your existing deal, you can ask to leave and have the exit fees dropped. If they say no, you can make a complaint, asking why the contract has changed for the worse. If your broadband speed or mobile phone reception is worse that you were promised, take regular signal tests using one of the free apps online.

This way you can prove that the business is breaching your contract and should let you leave without penalties.

What about social tariffs?

Ofcom also revealed that the number of people on “social tariffs” increased to 506,000 – up from 125,000 in 2023. However, barely a tenth of the people who are eligible are aware that they could be paying far less for broadband.

Social tariffs are designed to provide cheaper broadband services for people on certain benefits. These deals can dramatically reduce your broadband costs. Prices range from around £10-£20 a month. They are not affected by mid-term contract price rises.

To get started, contact your broadband provider and ask them about the social tariff deals they offer. You should be able to leave your existing deal mid-contract without having to pay an exit fee. In addition, set-up costs should be minimal, there will be no mid-contract price rise and you should be able to leave without a fee too.

You can compare all options by typing “social tariffs" on the Ofcom website: www.ofcom.org.uk/phones-and-broadband/saving-money/social-tariffs

Don’t forget that you can make a complaint about most mobile phone or broadband problems to the Ombudsman. The largest of the services is the Communications Ombudsman and you can contact them at www.commsombudsman.org​​​​​​​

Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist. Read more from Martyn at this link.