The comparison website, Uswitch, has found that 85% of UK broadband and mobile customers find it unfair that prices go up mid-contract. These price increases have been especially noticeable these last few years as companies try to match or exceed inflation.
Uswitch said that in April of next year, despite customers hating them, there are more price increases expected in line with inflation rates that will be announced in January, plus 3.9% on top. To be clear, these increases affect those still in contract.
As things stand, customers can only leave their contract if prices increase and they were not warned about increases at the start of their contract. Ofcom rules say that as long as providers tell customers that prices may rise, then they don’t need to give consumers the option of leaving when they do increase prices.
One important aspect Uswitch highlights here is the fact that customers don’t know how high inflation is going to be at any time. Given this, it could be seen as a bit unfair that they’re not given the right to leave if prices increase.
Mid-contract price rises are such an issue for some that 75% of respondents told Uswitch that they would be put off from taking a contract with a mobile or broadband provider if they had this policy.
Uswitch is urgently asking Ofcom to reassess inflation-linked price rises so consumers aren’t hurt next year, It said a tenth of customers are very sensitive to price rises and more needs to be done. It said:
“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.”
If you’ve recently gotten out of a contract and want to know the best providers who won’t ram up your prices each year, Uswitch pointed to Sky Mobile, Giffgaff, Smarty, Voxy, LycaMobile, and Lebara as well as the broadband providers Hyperoptic and Zen.
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