Richard Neudegg, director of regulation at Uswitch.com, comments:
“After years of campaigning for an end to unpredictable inflation-linked mid-contract price rises with no escape for customers, Ofcom’s new rules will bring some much needed clarity and certainty.
“Finally, broadband and mobile customers will know ahead of time exactly what they will pay for the duration of a contract, making it easier for them to properly manage their finances.
“This change will allow people to make informed choices at the start of their deal instead of being at the mercy of future inflation rates that are impossible to know in advance.
“We have already seen providers such as BT/EE, Plusnet and Vodafone get ahead of this announcement and adopt the ‘pounds and pence’ model for mid-contract price rises.
“Providers have so far opted to switch to a flat-rate approach to price rises, regardless of the cost of the package, which will be harsher as a proportion for many customers who are on cheaper or even average priced contracts.
“While Ofcom's decision means the total cost of your contract will be clear from the get go, we need to see how each provider will apply this in their pricing, so it’ll still be vital for customers to consider their options.
“It’s also important to be aware that Ofcom's rule change will only apply to new contracts, and only for new contracts taken from the 17th of January 2025. It is disappointing that Ofcom has chosen to give longer for implementation than originally proposed.
“If you’re currently in a contract with a provider using inflation-linked price increases, you will still be subject to these until you take out a new contract with the new rules in place.
“Broadband and mobile customers coming to the end of their contracts should shop around before committing to a new deal - and consider providers who have committed to no annual price rises.”
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 switch their energy, broadband and mobile 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.