Mobile, broadband, and pay TV providers will no longer be allowed to spring surprise price hikes during a contract.

As of January 17, new contracts will require companies to inform customers upfront about any potential price increases—expressed clearly "in pounds and pence" at the time of purchase.

The changes, enforced by Ofcom, demand that this information be delivered in a transparent and understandable manner, reducing confusion for consumers.

The regulator’s new rule follows complaints from users shocked by unexpected bill increases, especially amid rising living costs.

In recent years, many telecom providers began tying price increases mid-contract to inflation rates, with an additional 3.9% standard annual rise. This left consumers unable to accurately plan their finances, as future costs were unpredictable.

Cristina Luna-Esteban, Ofcom’s director of telecoms policy, emphasized: “People need financial stability, especially with monthly payments. It’s unreasonable to expect consumers to manage contracts where prices fluctuate due to inflation, which is hard to foresee.”

She continued, “We’re taking action for mobile, broadband, and TV customers to put an end to this practice, making it easier for people to compare deals and benefit from the competitive UK market."

The crackdown had been proposed in December and was refined after a consultation period.

By April, around 60% of broadband and mobile customers had contracts tied to inflation-based increases, Ofcom noted. Many customers didn’t fully grasp inflation’s impact on their expenses, which made it tough to forecast real prices.

Still, the competitive market has prompted some providers to offer contracts with fixed prices, providing more stability for consumers.

However, reactions to Ofcom's new rules have been mixed, with some consumer advocates expressing concerns.

Tom MacInnes from Citizens Advice criticized the time Ofcom took to act, pointing out that, during the wait, consumers had seen billions added to their bills, aggravating financial hardship for many.

“While it’s a welcome move to ban inflation-linked price hikes, the changes fall short of eliminating all mid-contract price rises,” MacInnes commented.

He further cautioned, “Ofcom is still allowing providers to sneak in small print mentioning ‘prices may vary,’ leaving customers vulnerable to unpredictable charges. We maintain that ‘fixed’ contracts should be truly fixed.”