Consumer advocate Martin Lewis has raised concerns about families facing unexpected price increases on their broadband and mobile bills, despite new industry rules aimed at improving transparency. Speaking on his BBC podcast, Lewis highlighted ongoing issues with mid-contract price hikes and urged consumers to stay vigilant.
Lewis praised the recent Telecoms Consumer Charter, supported by major providers like BT, Virgin Media, O2, Vodafone, Three, Sky, and TalkTalk, which promises no surprise charges except in exceptional circumstances. However, he believes the charter falls short of addressing the full extent of the problem.
He explained that while the new rules require companies to clearly disclose price rises in pounds and pence at the time of sale, transparency alone does not prevent substantial increases during contracts. Many customers, especially those on lower-cost tariffs, are now experiencing bigger percentage hikes than before.
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From January 2025, Ofcom banned mid-contract price rises linked solely to inflation, insisting that any future increases must be clearly communicated upfront. Still, Lewis pointed out a significant loophole exploited by Sky. The company uses “variable pricing,” allowing it to raise prices mid-contract without upfront notification, giving customers only 30 days to respond after being informed. Since many customers do not read these letters promptly, they often learn of increases only when new bills arrive.
Lewis argues that the 30-day notification window is inadequate and proposes either extending this period or closing the loophole entirely. He suggests a fairer system where price increases above inflation are prohibited mid-contract, with any allowed increases communicated clearly in advance.
In addition to price issues, the providers have committed to improving transparency around social tariffs—discounted broadband and mobile plans for lower-income households, including Universal Credit or Pension Credit recipients. While millions are eligible, Lewis warns many remain unaware due to poor signposting and limited promotion by providers and comparison websites.
Consumers are encouraged to check their eligibility for discounted rates, which can offer significant savings, sometimes as low as £10 per month. However, Lewis emphasizes the need for better awareness and clearer communication to ensure more people benefit from these offers.