In recent years, many major UK phone, broadband and pay TV companies have changed their contract terms to include price rises that are linked to future inflation rates. This can mean that consumers are uncertain about the prices they will pay.

In December 2023, Ofcom consulted on making changes to its General Conditions to require providers, where they apply in-contract price rises, to set these out upfront in pounds and pence, at the point of sale. It has now confirmed that it will be proceeding with these changes.

The new rules will mean that providers may not include inflation-linked or percentage-based price rise terms in new contracts.

Interference… or a good reception?

If you provide pay TV, phone or broadband services, you must draw information about in-contract price rises information to the customer’s attention prominently before they are bound by the contract.  

This must be in a clear and comprehensible manner (including during a sales call or other verbal sale such as an in-store sale) so that they can make an informed choice. Providers must also set out when any changes to the monthly price will take effect.

Providers may increase their prices during the contract period and the new rules do not restrict their ability to set the level of their prices. However, they will prohibit providers from including inflation-linked, or percentage-based, price rise terms that apply to the Core Subscription Price (defined by Ofcom as the sum that a consumer has to pay a provider at regular intervals for services and/or facilities the Communications Provider is bound to provide in return for that sum) in new contracts. 

This aims to give consumers clarity and certainty about the price they will pay, helping them choose the best deal for their needs.

Ofcom is issuing guidance to accompany the new rules, which will help providers to comply. The guidance includes examples of how you can present any in-contract price rises at the point of sale.

The new rules and guidance will apply to new contracts from 17 January 2025.