Millions of broadband and mobile customers are being warned to expect mid-contract price rises next year.

In April 2024, many broadband and mobile providers are expected to hit customers with a price increase in line with inflation rates that will be announced in January, plus as much as 3.9 per cent on top – even if they are within contract.

Almost 90 per cent of consumers believe they should be allowed to leave their provider for free if they raise their prices mid-contract.

However, while customers do have this right, this is only true if the customer isn’t made aware of potential rises at the start of their contract.

Ofcom rules allow providers to avoid customers leaving early if they tell customers that annual inflation (CPI or RPI) plus a fixed percentage rise (often 3.9 per cent) will apply - even though customers cannot reasonably predict what inflation might be in the future.

Uswitch research from earlier this year found that monthly broadband bills increased on average by £18.50 and mobile phone payments by £9.50 following this year's inflation-busting price rises in April.

Uswitch has been campaigning for providers to end the practice of annual price hikes, and instead commit to either clear pricing from the start of a contract or allow customers to leave penalty free.

Next spring will also see a new broadband switching process known as One Touch Switch scheduled to come into effect on 14 March 2024 - which should make it faster and simpler for consumers to switch to a new broadband supplier. 

Ernest Doku, telecoms expert at Uswitch.com, said: “We’re calling for an end to the practice of inflation-linked annual price rises in broadband and mobile contracts. With inflation still historically high, it’s never been more urgent for this industry norm to be reformed.

“The inflation-linked mechanic is especially unfair for bill payers as consumers cannot be expected to know exactly how much the rise will be. It’s time for Ofcom to intervene.

“Time is running out to address 2024 price rises. The Retail Price Index (RPI) and Consumer Price Index (CPI) figures are confirmed in January, which is when the scale of the increases will become clear - with provider notifications arriving from March.

“For consumers, we know even an increase of £5 can make a difference, so it’s worth looking ahead and understanding when your contract is coming to an end.

“There are providers out there who commit to never raising prices mid contract - such as Sky Mobile, Giffgaff, Smarty, Voxy, LycaMobile and Lebara, as well as broadband providers such as Hyperoptic and Zen.

“Even if you aren’t ready to switch quite yet, you should make sure you’re up to date on your contract terms and keep your eyes peeled for any communications around anticipated price rises at the start of next year.”