Ofcom UK Impose Cost Cap on Calls to 118 Directory Enquiries

The high cost of contacting 118 numbers (Directory Enquires), which can sometimes reach up to £20 for an average 90-second call, is not a new concern but Ofcom has now finally decided to clampdown on the problem by imposing a cap on the cost of calling such services (effective from 1st April 2019).

The popularity of the internet and smart AI voice assistants, as well as declining call volumes, has naturally meant that 118 services are significantly less popular than they once were. The number of calls made to 118 numbers has reduced from 7.14 million in Q3 2014 to 1.95 million in Q2 2017 (average annual decline of 38%). Nevertheless 1 million+ people in the UK still use them and many of those are elderly.

Of those consumers who use directory enquiry services, 8% experience affordability issues as a result, either cutting back expenditure on other items, borrowing money from friends or family to pay their bill, delaying payment or defaulting on their bill altogether.

Put another way, Ofcom has estimated that around 450,000 consumers a year are paying £2.4m in total “more than they expect for these calls.” In response the regulator will next year cap the maximum amount that a 118 service can charge at £3.65 per 90 seconds. This should help to stop some of the extremes seen below.

Jane Rumble, Ofcom’s Director of Consumer Policy, said:

“Directory enquiry prices have risen in recent years, and callers are paying much more than they expect. Our evidence shows this is hurting people, with some struggling to pay their bills.

We’re taking action to protect callers by capping 118 prices. This will significantly cut the cost of msny calls, and bring them back to 2012 levels.”

Margot James, UK Minister for Digital, said:

“It’s about time that this horrendous ripping off of customers was brought to an end. The new price cap will go a long way in protecting consumers from astronomical fees, and is part of a series of measures we have worked with Ofcom on to secure a better deal for consumers.”

Check out the full statement for more details.