For years, broadband and mobile customers were hit by a particularly sneaky charge: a mid-contract price rise pegged to inflation, usually CPI or RPI plus around 3.9%. You signed up for an advertised price, then watched your bill jump every April by an amount nobody could predict at sign-up. Ofcom has now banned that practice. Since 17 January 2025, providers can no longer use inflation-linked or percentage-based price rises in new contracts — any in-contract increase must be set out upfront in pounds and pence. Here is what that means for your bill in 2026, and how to make the rules work for you.
What exactly did Ofcom ban?
From 17 January 2025, phone, broadband and pay-TV providers are prohibited from including inflation-linked or percentage-based mid-contract price rise terms in any new contract. If a provider wants to raise prices during your contract, it must tell you — before you sign — exactly how much in pounds and pence, and when. The aim is simple: you should be able to see the true cost of a deal before you commit, instead of agreeing to a mystery percentage tied to a future inflation figure.
The change matters because the old system was both unpredictable and widely misunderstood. Ofcom found that as of April 2024, around six in ten broadband and mobile customers were on contracts subject to inflation-linked rises — yet more than half did not know what CPI or RPI actually measure.
| Feature | Old inflation-linked contracts | New contracts (from 17 Jan 2025) |
|---|---|---|
| How rises are set | CPI or RPI + a percentage (e.g. +3.9%) | Fixed amount in pounds and pence |
| Known at sign-up? | No — depends on future inflation | Yes — stated before you commit |
| Predictable? | No | Yes |
| Allowed in new contracts? | No longer permitted | Yes, if shown clearly upfront |
The important catch: old contracts are not covered
This is the part many people miss. The ban applies to new contracts taken out from 17 January 2025. It does not override the terms of contracts you signed before that date. So if you are still part-way through an older deal with a CPI+3.9% clause, you can still face an inflation-linked rise until that contract ends. If that is you, it is worth checking when your minimum term finishes — once you are out of contract, switching to a new deal moves you onto the clearer pounds-and-pence regime.
Also note: the rules stop rises being linked to inflation, but they do not cap the size of a fixed rise. A provider can still build in an above-inflation increase — it just has to tell you the exact figure first. Transparency, not a price freeze.
How the two models compare in practice
Take an illustrative £30-a-month broadband deal. Under an old inflation-linked clause of, say, CPI of around 4% plus 3.9% (about 7.9%), the price would climb unpredictably each year. Under a fixed pounds-and-pence rise of, say, £3 a month, you know the number from day one. The chart shows how the monthly price might evolve under each model — figures are illustrative.
The point is not which is cheaper — it depends on the numbers — but that the fixed model is knowable in advance, so you can compare deals on a like-for-like basis.
What to check before you sign a new deal
- The exact pounds-and-pence rise and the month it applies — it should be stated clearly upfront.
- The total cost over the minimum term, including any mid-contract increase, not just the headline monthly price.
- Whether the rise applies to the whole bill or just part (some providers exclude certain elements).
- Your right to exit penalty-free if a provider tries to raise prices in a way not set out in your contract.
- When your current contract ends, so you can switch to a clearer deal as soon as you are free to.
| If you are… | What to do |
|---|---|
| On a deal signed before 17 Jan 2025 | Check your end date; switch when free to move onto pounds-and-pence terms |
| Out of contract | Compare and switch now — you are likely overpaying on an “out of contract” rate |
| Signing a new deal | Confirm the exact £ rise and the total cost over the term before committing |
The single biggest saving: don’t roll onto the out-of-contract price
Whatever the price-rise rules, the most expensive thing you can do is let a contract lapse and sit on the default out-of-contract rate, which is often far higher than new-customer deals. Set a reminder for when your minimum term ends and compare the market — haggling or switching at that point typically beats any saving the price-rise rules deliver. For the official explanation of the rules, see Ofcom’s guidance on the ban.
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Frequently asked questions
Are inflation-linked broadband price rises banned?
Yes, in new contracts. Since 17 January 2025, broadband, mobile and pay-TV providers cannot use inflation-linked or percentage-based mid-contract price rises in new contracts. Any in-contract increase must be set out in pounds and pence before you sign.
Does the ban apply to my existing contract?
No. The rules apply to contracts taken out from 17 January 2025. If you signed an older deal with a CPI or RPI-linked clause, that term can still apply until your contract ends. Switching to a new deal once you are out of contract moves you onto the clearer rules.
Can my provider still raise prices mid-contract?
Yes, but only by a fixed amount stated upfront in pounds and pence. The ban removes unpredictable inflation-linked rises; it does not cap how large a clearly-disclosed fixed rise can be.
Can I leave my contract if prices go up?
If your provider increases prices in a way that was not clearly set out in your contract, you generally have the right to leave penalty-free. If the rise was disclosed in pounds and pence upfront, it is part of the deal you agreed to.
How can I avoid broadband price rises altogether?
Look for deals that advertise no mid-contract price rises, or fix the total cost over the term. Most importantly, switch or renegotiate as soon as your contract ends rather than drifting onto a higher out-of-contract rate.
This guide is general information and reflects the rules as of June 2026. Provider terms vary — always check the specific contract details before signing.