{"id":47023,"date":"2026-06-29T08:02:20","date_gmt":"2026-06-29T07:02:20","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=47023"},"modified":"2026-06-29T08:09:49","modified_gmt":"2026-06-29T07:09:49","slug":"ofcoms-mid-contract-pricing-policy-resulted-in-higher-uk-broadband-prices","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2026\/06\/ofcoms-mid-contract-pricing-policy-resulted-in-higher-uk-broadband-prices.html","title":{"rendered":"Ofcom&#8217;s Mid-Contract Pricing Policy Resulted in Higher UK Broadband Prices"},"content":{"rendered":"<p>In news that will not come as a great surprise to ISPreview\u2019s readers. A new MSE survey of 47,000 tariffs &#8211; all from UK mobile and broadband providers with the biggest market share &#8211; has found that <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a>&#8217;s latest policy to improve the transparency of mid-contract price hikes actually seems to have resulted in consumers paying more for their service.<!--more--><\/p>\n<p>At the start of last year the UK telecoms and media regulator, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a>, began requiring telecoms providers to adopt a new approach to mid-contract price hikes, which finally did away with the old and sometimes confusing percentage and inflation-based model \u2013 replacing it with one that require providers to set out such price rises \u201c<em>clearly and up-front, in pounds and pence, when a customer signs up<\/em>\u201d (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2025\/01\/ofcom-enforce-ban-on-some-mid-contract-uk-broadband-price-hikes.html\">here<\/a>).<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> Under the old policy, prices would rise each year by 2-4% plus the rate of annual inflation, as measured via either the Consumer Price Index (CPI) or Retail Price Index (RPI). The UK CPI annual inflation rates for the past 12 months fluctuated between a peak of 3.8% in the summer of 2025 and a low of 2.8% in the spring of 2026.<\/div>\n<p>On the surface this seemed like a good idea, not least because it made annual price hikes clearer and more transparent. On the flip side, it also made it more difficult for providers to balance price rises across lots of different packages, which resulted in many providers adopting a flat price rise &#8211; set at the same level for every package.<\/p>\n<p>For example, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a> were the first to jump by increasing the monthly broadband price that customers pay by a flat \u00a33 extra \u2013 effective from March or April each year (the level of increase varies a bit between providers), which was later increased to \u00a34 after inflation remained higher than forecast (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2025\/07\/broadband-isps-bt-ee-and-plusnet-to-raise-uk-mid-contract-price-hikes-to-4.html\">here<\/a>). Many other providers have since adopted a near identical approach.<\/p>\n<p>The problem with this approach, which we&#8217;ve raised many times before on these pages, is that it has a tendency to hit those on the cheapest broadband and mobile packages the hardest (i.e. if you pay \u00a320\/month then a \u00a34 rise equates to a 20% price hike each year), while only giving a reprieve to the smaller portion of consumers who take more expensive packages (e.g. if you pay \u00a360 then a \u00a34 rise equates to a 6.67% increase) &#8211; not very fair to those on cheaper packages.<\/p>\n<h3><span style=\"color: #339966;\"><strong>Results of the new study<\/strong><\/span><\/h3>\n<p>According to the new study of 47,000 tariffs from UK mobile and broadband providers, which was conducted by Martin Lewis and <a href=\"https:\/\/www.moneysavingexpert.com\/news\/2026\/06\/mobile-broadband-price-hike-research\/\" target=\"_blank\" rel=\"noopener\">MoneySavingExpert<\/a> (MSE), some three in four were found to be worse off under <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a>&#8217;s new system than they would have been under the previous inflation-linked approach.<\/p>\n<p>In addition, in almost all cases, &#8220;<em>all customers faced above-inflation price rises under the new system<\/em>&#8221; and &#8220;<em>those who suffer most are those who have tried to keep their costs down by choosing cheaper tariffs<\/em>&#8220;.<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #339966;\"><strong>Impact on a selection of broadband contracts<\/strong><\/span><\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<th class=\"bq3\"><strong class=\"__content__strong\">Broadband contract type<\/strong><\/th>\n<th class=\"bq3\"><strong class=\"__content__strong\">Original price<\/strong><\/th>\n<th class=\"bq3\"><strong class=\"__content__strong\">Price rise under the &#8216;pounds and pence&#8217; system<\/strong><\/th>\n<th class=\"bq3\"><strong class=\"__content__strong\">Price rise under the old &#8216;inflation-linked&#8217; system<\/strong><\/th>\n<th class=\"bq3\"><strong class=\"__content__strong\">Current CPI<\/strong><\/th>\n<\/tr>\n<tr>\n<td class=\"__content__td\"><strong class=\"__content__strong\">Basic (150 Mbps)<\/strong><\/td>\n<td class=\"__content__td\">\u00a318<\/td>\n<td class=\"__content__td\">22%<\/td>\n<td class=\"__content__td\">7.1%<\/td>\n<td class=\"__content__td\">2.8%<\/td>\n<\/tr>\n<tr>\n<td class=\"__content__td\"><strong class=\"__content__strong\">Medium (500 Mbps)<\/strong><\/td>\n<td class=\"__content__td\">\u00a326<\/td>\n<td class=\"__content__td\">13%<\/td>\n<td class=\"__content__td\">7.3%<\/td>\n<td class=\"__content__td\">2.8%<\/td>\n<\/tr>\n<tr>\n<td class=\"__content__td\"><strong class=\"__content__strong\">Super-fast (900 Mbps)<\/strong><\/td>\n<td class=\"__content__td\">\u00a334.99<\/td>\n<td class=\"__content__td\">11%<\/td>\n<td class=\"__content__td\">7.3%<\/td>\n<td class=\"__content__td\">2.8%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<blockquote class=\"bq1\"><p><strong>Martin Lewis said:<\/strong><\/p>\n<p>&#8220;This was frustratingly predictable. Let&#8217;s be plain, it provisionally looks like the regulator&#8217;s intervention resulted in most contracts costing more. Transparency only goes so far, we don&#8217;t want customers overpaying just because they were told about it first.<\/p>\n<p>The solution has always been bleedin&#8217; obvious. Just ban above-inflation mid-contract price hikes. Of course, many, including me, would prefer a ban on any mid-contract rise, as the price you sign up for should be the price you pay over the length of the contract. Yet that risks possible market distortion, as firms may lift initial prices as a provision against unexpected costs mid-contract.&#8221;<\/p><\/blockquote>\n<p>Sadly the government has, thus far, only seemed inclined to pay lip service to this problem, such as through their soft voluntary <strong><a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2026\/02\/major-uk-broadband-isps-sign-gov-charter-to-stop-unexpected-bill-increases.html\">Telecoms Consumer Charter<\/a><\/strong> (TCC), while at the same time saying they have \u201c<em>no plans to ban in-contract price rises<\/em>\u201d for UK consumers taking broadband, mobile and phone services (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2025\/12\/gov-confirm-no-plans-to-ban-mid-contract-uk-broadband-and-mobile-price-hikes.html\">here<\/a>).<\/p>\n<p>One difficulty for the industry is over the question of how you ban mid-contract hikes without also disrupting the ability of providers to offer a diverse range of attractive first-contract-term style service discounts. In a competitive market this can help to attract or retain customers, while also supporting the growth of new alternative networks against established incumbents.<\/p>\n<p>Finding a balanced approach that preserves some discounting, while still being easy to understand and apply in a way that&#8217;s fair across lots of different package tiers, is not an easy task. But much like MSE, we remain broadly in favour of a ban on mid-contract hikes. Finally, inflation has since fallen back a bit over the past year, so we&#8217;re waiting to see if any big providers reduce their mid-contract hikes later in 2026.<\/p>\n<p>Take note that there is some choice in the market, so not all providers adopt a policy of mid-contract hikes, although the current system is common amongst the largest players and most consumers use those.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In news that will not come as a great surprise to ISPreview\u2019s readers. A new MSE survey of 47,000 tariffs &#8211; all from UK mobile and broadband providers with the biggest market share &#8211; has found that Ofcom&#8217;s latest policy to improve the transparency of mid-contract price hikes actually seems to have resulted in consumers [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":33378,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[36,38,34],"class_list":["post-47023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-ofcom-regulation","tag-politics","tag-statistics"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/116832117816437376","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ofcom&#039;s Mid-Contract Pricing Policy Resulted in Higher UK Broadband Prices - ISPreview UK<\/title>\n<meta name=\"description\" content=\"In news that will not come as a great surprise to ISPreview\u2019s readers. 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