The new rule — no more hidden inflation rises
For years, providers buried mid-contract rises like “CPI inflation plus 3.9%” in the small print — so nobody knew what they’d actually pay. Ofcom banned that. For any contract you signed on or after 17 January 2025:
- Inflation-linked or percentage-based mid-contract price rises are not allowed.
- If a rise is built into the deal, it must be set out in pounds and pence, clearly and prominently, before you sign — so you know the exact amount and date in advance.
- That applies to broadband, mobile, home phone and pay-TV contracts.
Why this matters
You can now see the true price of a deal before you commit. A “£25 a month” contract that quietly rose with inflation could cost far more — now any rise is on the table from day one, so you can compare honestly.
When you can leave penalty-free
This is the part providers don’t advertise. If your provider raises your price by more than you agreed when you signed up, they must:
- give you at least 30 days’ notice of the change; and
- let you leave penalty-free — no early-exit fee — within that notice period.
The catch — “agreed” means agreed
A rise that was clearly set out in pounds and pence at the start counts as something you agreed to — so on its own it does not give you a penalty-free exit. The exit right is for rises beyond what you signed up to. Check your contract and sign-up email to see exactly what was promised.
On an older contract with a CPI rise?
If you signed before 17 January 2025, your contract can still carry an inflation-linked in-contract rise this year. But there’s an end in sight:
- Providers have committed that April 2026 is the last time they’ll apply an inflation-linked in-contract price rise.
- Once your minimum term ends, you’re free to switch to another provider or ask yours for new terms without inflation rises.
- Out of contract, you can leave any time with no exit fee — that’s usually where the real savings are.
How to actually cut the bill
The rules protect you, but the savings come from acting. The single biggest one: don’t drift out of contract on the old price, where prices quietly climb and loyal customers pay the most.
| Your move | What to do |
|---|
| Switch | Out of contract? Compare deals and switch — one-touch switching moves your broadband for you, with no gap. New customers almost always pay less than loyal ones. |
| Haggle | Tell your provider you’re leaving and ask for their best retention price. Mention the deal you’ve found elsewhere — they often match or beat it. |
| Social tariff | On Universal Credit, Pension Credit or some other benefits? Ask about a social tariff — cheaper packages with no in-contract price rises and no exit fees. |
Do this now
Check your latest bill or sign-up email for the exact rise. If it’s more than you agreed, tell your provider you’re exercising your penalty-free exit within the 30-day notice window.
Then compare a social tariff if you’re eligible, or look at other ways to stop overpaying on bills with Save Money.
If your provider won’t play fair
Complain to them first. If it’s not sorted within
8 weeks (or you get a “deadlock” letter), escalate
free to the telecoms ombudsman your provider belongs to —
Communications Ombudsman or
CISAS. It’s independent and binding on the provider. See
how to complain.