Price increase rules
From 17 January 2025 telecom providers must be transparent and set out any price rises that will occur during the term of customer contracts. At the point of sale, the increase must clearly be stated in pounds and pence, rather than the inflation rate. This covers phone, broadband and Internet TV.
In previous years, companies have been able to use inflation rates plus an additional percentage as their basis for increasing prices.
Last year, BT, EE, O2, Sky, Three, Virgin Media and Vodafone confirmed rises for Spring 2025. This was on top of the hikes of up to 17.3% the previous year.
Ofcom believes that this new rule will ensure that consumers clearly understand any forthcoming price increase.
Price rises
However, if you took out your contract before providers implemented these new terms, you will still be faced with inflation-linked price rises based on the inflation figures from the Office for National Statistics. These include customers of BT, EE, Plusnet and Vodafone.
The latest consumer price index, published on Wednesday 15 January 2025, shows a figure of 2.5%.
Some providers, such as Sky and Sky-owned Now, offer contracts that allow unspecified price rises during the contract period. If they do this, they must give clients 30 days’ notice and the right to exit penalty-free, so that consumers can opt out of the price rise and go elsewhere.
In effect, whilst providers do now have to be more transparent, there has been no ban on companies putting above inflation rises in place.
Reducing the cost of your contract
In December 2024 Ofcom published figures revealing that in the previous year average prices for broadband and mobile bundles in the UK had fallen in real terms, with the fastest packages seeing the biggest drop.
However there are still ways you can get your price down mid-contract.
Threaten to leave
Usually, if you threaten to leave a company, you’ll be made an offer on better terms. However, you can possibly get even better deals simply by negotiating, without the threats.
You’ll be put through to the department that deals with customers considering leaving.
Before you call or join an online chat, write down two numbers: the maximum you’re willing to pay monthly and the lowest you’re willing to pay. These numbers should guide your haggling, so that you stay focussed and within the limits you’ve set.
Be prepared
Do your research and work out how much your “exit fee” would be, if you would be charged one, and see what other companies can offer. The “exit fee” should be clearly displayed in your current contract. Look at comparison sites, including using cashback sites. This would allow you to tell your current provider the price, showing that, even with the exit fee, it is cheaper to leave.
The best-known and biggest cashback sites are Topcashback* and Quidco*. Create an account, look up the company from which you wish to buy then register and track your purchase. The time in which you get the cashback amount varies from trader to trader.
Research the deals and discounts your provider and its competitors offer as the basis for your negotiation.
Build a good rapport
Be cool, calm, polite and assertive. Keep good humour. People are more open to persuasion if you make them feel good, rather than trying to beat them down in price. Make them want to help you.
Don’t take the first offer
Tell them that you have a budget and the maximum you will pay. Refer them to other companies prices. Use delay techniques saying that you will need to think about it and ask them to put a better offer in writing. Don’t feel pressured into taking an offer. Aggressive sales techniques are a breach of The Consumer Protection from Unfair Trading Regulations. Keep quiet when they are trying to make you fill any silence with acceptance of an offer. Say you are waiting for a better one!
Write to the Executive team
Find the email address for the CEO from ceoemail.com and write to the boss, saying that you are intending to leave and follow the advice above. This also works if you feel that you don’t want to speak to anyone by telephone or you want written evidence that a deal has been agreed.
Are you eligible for discounted telecom packages?
Some providers have special, cheaper deals (sometimes known as ‘social tariffs’) for people in receipt of certain benefits, such as Universal Credit. In July 2021 Ofcom set out some boundaries for effective social tariffs, such as ensuring there are no data caps, minimal initial up-front costs and no early termination charges. Check with your provider what is available.
Rocio Concha, Which? Director of Policy and Advocacy, said:
Which? led the campaign for a ban on unpredictable mid-contract price hikes by telecoms firms so it’s positive that providers must now give new and re-contracting customers more certainty about pricing and set out any increases clearly in pounds and pence. This will make it easier for consumers to compare providers and switch to a better deal.
The price hikes announced by some telecoms providers seem disproportionate in some cases, particularly for customers on cheaper tariffs. These price rises need to be fair, so Ofcom should be monitoring how providers are applying the new rules and stepping in when bills are increasing by unjustifiably high amounts.
Broadband and mobile firms also need to do a better job of promoting social tariffs, which could protect customers on lower incomes from facing any mid-contract price increases.”
@thecomplainingcow These price change rules apply to broadband, phones and pay TV. #Telecoms #Broadband #Phones #Contracts #moneytipsandtricks
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