Broadband and mobile price rises: Ofcom's pounds-and-pence rule, and when you can leave without a fee

What's happened

If you sign a new phone or broadband deal in the Black Friday sales, the price rises for the next two years should already be on the order page, in pounds and pence. That's because of an Ofcom rule that has applied to new contracts since 17 January 2025. Ofcom says that April 2026 was the last time providers that signed the Government's Telecoms Consumer Charter would apply the old inflation-linked rises.

A rise you agreed to upfront usually can't be escaped mid-contract. But if your provider puts the price up by more than your contract says, or by an amount it never set out, you can leave without paying an exit fee.

What the rules say

Telecoms contracts are governed by Ofcom's General Conditions of Entitlement, made under the Communications Act 2003. Condition C1 covers contracts.

• Rises must be in pounds and pence. Since 17 January 2025, phone, broadband and pay TV providers have been banned from putting inflation-linked or percentage-based price rises in new contracts. Any rise must be set out "prominently and transparently" at the point of sale, in pounds and pence, with the date it takes effect.
• Older contracts may still be inflation-linked. Ofcom says contracts signed before 17 January 2025 might still include rises linked to inflation or set out as a percentage. This year many of those customers paid 7.3% more (CPI plus 3.9%), and some Virgin Media and O2 customers 7.7% (RPI plus 3.9%).
• Rises set out upfront don't give you a way out. Ofcom's guidance says that a provider that sets out its rises this way isn't required to let you leave without charge when they take effect.
• Anything else does. If your contract doesn't say how much the price can rise, or your provider raises it by more than the contract says, conditions C1.14 to C1.17 apply. The provider must give you at least one month's notice in writing (a letter, email or text you can keep), tell you that you can leave, and let you end the contract within one month of that notice. You can't be charged early termination fees, only your normal bill up to the day the contract ends.

So what counts is what you agreed to. Ofcom's February 2026 pricing report found that in-contract rises announced for 2026 ranged from £1.80 to £2.50 a month for mobile and £2 to £4 for broadband. There's no cap on the amount.

What it means in pounds: a worked example

This is an illustration, not a real deal.

Alex signs two 24-month contracts starting on 1 November 2026. Each has a fixed rise every April.

• SIM-only mobile at £12 a month, rising by £2.50 each April. Alex pays £12 for five months (£60), £14.50 for the next 12 (£174) and £17 for the last seven (£119). That's £353, not the £288 you'd get from 24 × £12. The extra £65 is about 23% more than the headline price.
• Broadband at £25 a month, rising by £4 each April. Five months at £25 (£125), 12 at £29 (£348) and seven at £33 (£231) come to £704, which is £104 more than 24 × £25.

Neither rise lets Alex leave early, because both were set out in pounds and pence before signing. Now suppose that in February 2027 the mobile provider writes to say the April rise will be £3.50, not the £2.50 in the contract. That's more than Alex agreed to. The provider must give at least a month's notice, and Alex then has a month to cancel without an exit fee and move to another network.

If Alex had a phone on the same contract and wanted to keep it, Condition C1.16 says the most Alex could be charged for it is the smaller of the phone's remaining value or the handset payments left on the contract. If the phone is on a separate linked device loan, Alex would owe what's left on that loan. The provider must also unlock the phone for free.

What to do now

1. Find your price rise terms. Look at your contract summary or order confirmation for the amount and the month. If you signed before 17 January 2025, check whether your terms are still linked to inflation.
2. Before you sign anything new, add up the whole contract and compare the total across providers.
3. Read any price rise letter carefully. If the rise is bigger than your contract says, or wasn't in your contract at all, the letter should tell you that you can leave. Note the date, because you have one month.
4. Line up a new deal before you cancel. For mobile, text "INFO" free to 85075 to start a switch. For broadband, your new provider can arrange the switch using One Touch Switch.
5. Check for a social tariff. If you claim Universal Credit, Pension Credit or certain other benefits, Ofcom says you should be able to move to your provider's social tariff without a penalty, even mid-contract.
6. Complain if you're charged an exit fee you shouldn't pay. If it isn't sorted within eight weeks, or you get a deadlock letter, you can take it to your provider's alternative dispute resolution scheme, which is free.

Your questions answered

I'm on an older contract with a CPI-plus rise. Can I leave?

Not if the rise was made clear when you signed. If you think it wasn't, complain to your provider. Ofcom has said that where rise terms weren't made prominent and transparent at the point of sale, customers should have been offered the right to leave without a penalty.

Does this apply when my contract ends?

Once the minimum term is over, you can usually leave anyway. Your provider must send an end-of-contract notice 10 to 40 days before the end date, showing what you'll pay afterwards and its best deals. Prices often go up when a contract ends, so that's the time to switch or haggle.

Sources: Ofcom: telecoms price rises, what are your rights?, Ofcom: ban on inflation-linked price rises, Ofcom statement and General Condition C1 guidance, Ofcom: pricing and consumer engagement report (February 2026), Ofcom: statement on O2 price rises, Ofcom: are you in or out of contract?, Ofcom: enforcement programme on price rise transparency