A transparency tax for consumers: Uswitch comments on the introduction of Ofcom's ban on inflation-linked mid-contract price increases

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Written by Uswitch
Updated on 22 January 2025
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Ernest Doku, telecoms expert at Uswitch.com, comments on today’s introduction of the Ofcom ban on inflation-linked mid-contract price increases:

“Despite Ofcom’s new rules, costs can still rise by whatever price is set out by their provider when they sign up. 

“Many providers have now opted for a blanket flat-rate annual price rise that will be even higher than the inflation-linked approach for the average broadband customer. 

“So if you’re on a cheaper or average-priced contract, the luxury of knowing what your exact price rise is in advance, comes at the cost of an even steeper bill hike - effectively a ‘transparency tax’ for consumers. 

“BT/EE, Vodafone, TalkTalk and Plusnet have all applied a £3 flat-rate increase across all broadband plans, and Virgin Media a blanket increase of £3.50. When applied to the average broadband bill of £29.60, this is a rise of 10.14% to 11.82%.

“It’s a similar story for mobile providers, with many increases ranging from £1.50 to £1.80, which equates to a rise of 7.25% to 8.7% on the average bill of £20.70[2] and even more for the millions on cheaper tariffs. 

“With so many variables across different providers, shopping around is essential to ensure you’re getting the best deal. It’s more important than ever to reset the clock on your mobile and broadband contracts every 12 to 24 months, as this is the only way to avoid compounding annual increases.

“There are also providers who don’t increase their prices mid-contract – including mobile networks like Giffgaff, SMARTY, VOXI, and Lebara, as well as regional broadband providers like Hyperoptic and Trooli.”

ENDS

Table: Broadband provider price increases on the average cost

ProviderPounds and pence increaseNew monthly cost for the average bill (based on £29.60)Equivalent percentage increase
BT/EE£3£32.610.14%
Community Fibre£2£31.66.76%
KCOM£2 - £3£31.66.76% - 10.14%
Plusnet£3£32.610.14%
Onestream£2.75£32.359.29%
TalkTalk£3£32.6010.14%
Three£2£31.606.76%
Vodafone£3£32.6010.14%
Virgin Media£3.50£33.1011.82%

Table: Mobile provider price increases on the average cost

ProviderPounds and pence increaseEquivalent % on the average mobile bill (£20.70)
BT/EE£1.50 for SIM only7.25% for SIM only
£4 for handsets19.32% for handsets
O2£1.808.7%
Three£1 per month (4GB or less)4.83% (4GB or less)
£1.25 per month (5GB-99GB)6.04% (5GB-99GB)
£1.50 per month (100GB+)7.25% (100GB+)
Tesco MobileVaries depending on contract cost. For example, a £14.99 contract +90p per month, a £30 contract +£1.90 per month6%
Vodafone£1.80 (£1 for SIMO ‘Basics’ product) 8.7% (4.83% for SIMO ‘Basics’ product)

Notes to editors

  1. Opinium surveyed a sample of 20,000 UK adults in December 2024. Respondents were asked ‘How much do you currently pay for your home broadband?’ with the average response £29.60.
  2. Opinium surveyed a sample of 20,000 UK adults in December 2024. Respondents were asked ‘How much do you currently pay for your mobile’ with the average response £20.70.


For more information

Harriet Atkinson | Telecoms PR Manager

harriet.atkinson@rvu.co.uk

Twitter: @UswitchPR

About Uswitch

Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles. 

More people go to Uswitch to find their energy, broadband and mobile deals than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.

Free mobile app Utrack also helps households manage their home energy usage and make potential savings. 

Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.