End to surprise phone and broadband bill hikes to help with cost of living
Major telecoms providers sign new charter to end unexpected mid-contract price rises and make social tariffs easier to access, helping millions manage living costs.
- major broadband and mobile providers pledge to stop unexpected bill increases under new Telecoms Consumer Charter, following intervention by the Chancellor and Technology Secretary
- customers to benefit from clearer pricing when signing up to deals and making it easier for vulnerable consumers to access social tariffs, which could save them up to £220 per year
- comes as government launches review into the mobile market to explore further action to unleash investment in fast, reliable connectivity – driving forward its plan for national renewal
Millions of mobile and broadband customers will be spared the worry of unexpected increases on their bills after major providers signed up to new commitments to help people manage the cost of living.
On Wednesday 11 February, the Chancellor and the Technology Secretary hosted a roundtable with the UK’s biggest telecoms providers – including BT, Virgin Media O2, VodafoneThree, Sky and TalkTalk – who have all signed up to the government’s new Telecoms Consumer Charter. Industry trade associations, Internet Service Providers Association (ISPA) and the Independent Networks Cooperative Association (INCA), are also supporting the Charter.
It follows an intervention by the Chancellor and Tech Secretary to the sector at the end of last year to ensure hardworking consumers are treated fairly, do not face price rises they have not signed up to and have clearer communications from their provider.
Under the commitments in the charter, customers will know exactly what they’ll be paying when they sign up for a new mobile or broadband deal – with no unexpected price rises midway through a contract. Customers will be given clear information on any future price changes up front, so the price they sign up to is the price they can expect to pay.
Cheaper social tariffs are on offer for those on government benefits, however nearly 7 in 10 eligible broadband customers had not heard of them*. In a win for thousands of billpayers, the Charter will ensure eligible customers find it easier to access social tariffs. Ofcom has previously estimated that social tariffs could save eligible households up to £220 per year.
To support those who may be struggling to pay their household bills, providers will proactively signpost social tariffs to eligible customers and offer customers facing financial difficulty the chance to move to cheaper plans without any penalty and manageable payment plans.
Technology Secretary Liz Kendall said:
Broadband and mobile customers deserve to be treated fairly and not face sudden jumps in their bills.
Following action by this government, telecom companies have now agreed to end unexpected mid‑contract price rises and making social tariffs easier to access.
These changes will make a real difference to millions of consumers across the country and help with the cost-of-living pressures.
It comes as the government launches a review into the mobile telecoms market, as part of the government’s joint mission with industry to deliver standalone 5G – the fastest, most reliable mobile signal available – to all populated areas by 2030.
The Mobile Market Review is a deep dive into the factors shaping industry’s ability to invest in networks over the long-term from investment challenges to technological developments and changes in the market.
Fast, reliable and widely accessible connectivity underpins economic growth and drives innovation, delivering real benefits for people and business across the UK. It ensures everyone, no matter where they live or their circumstances, can fully participate in today’s digital economy.
Delivering our telecoms ambitions requires bold, long-term investment from industry, and providers have invested billions to upgrade the UK’s telecoms networks. Through this call for evidence, we want to understand what further action government can take to create the conditions for strong, sustained investment in the mobile infrastructure the UK needs for the future.
Industry quotes
Allison Kirkby, Chief Executive of BT Group, said:
We led the industry on price transparency and fairness, and now we’re calling on other mobile networks to do the same.
Protecting customers is as much about resilient infrastructure as it is about price. Nobody is investing in the UK like BT – and we’re encouraging the government to take bold decisions to support continued investment. The more people, businesses and society connect, the more our networks fuel growth.
Lutz Schüler, CEO of Virgin Media O2, said:
We welcome this Charter which strengthens predictability and transparency for consumers while recognising the significant value the telecoms sector delivers. Virgin Media O2 is making one of the largest investments in the UK worth billions of pounds every year to bring fibre to more places and improve 4G and 5G mobile networks. Maintaining essential digital infrastructure investment like this is essential if the UK is to keep pace with growing demand and emerging technologies which greatly benefit consumers and businesses across the country.
Devesh Raj, Chief Operating Officer, Sky UK, said:
Sky is proud to support this voluntary Charter, which strengthens transparency and ensures customers have clear, straightforward information about their services. We also recognise the importance of supporting customers who are facing financial pressure. That’s why we continue to promote and improve access to our social tariffs, ensuring that those who need extra help can stay connected to the essential services they rely on. By working with government and industry partners, we’re committed to raising standards across the sector and ensuring every customer receives great value, fair treatment, and the support they need.
Paddy Paddison, CEO of the Independent Networks Cooperative Association, said:
INCA welcomes this engagement between government, Ofcom and industry through the Telecoms Consumer Charter. Strengthening consumer confidence is good for the whole sector. Customers should be able to understand, in plain pounds and pence, what they are signing up to and what they can expect to pay. It is important these commitments are practical and maintain the conditions for continued investment and network competition, because that is what delivers better coverage, service quality and value over time.
Steve Leighton, Chair of the Internet Service Providers Association, said:
ISPA is proud to be supporting the Telecoms Consumer Charter which builds on the range of pro-consumer regulatory reforms that our members are already putting in place. Providers are continuing to implement these in addition to providing support for those struggling with affordability through initiatives such as social tariffs, device donations and digital upskilling. Meanwhile, it’s easier to switch now than ever before.
With this in mind, we believe now should be the best time to be a telecoms customer, with lower prices, and greater competition. But, this can only be achieved through a stable policy and regulatory environment, spearheaded by a government which places connectivity at the heart of its ambitions on productivity and growth. This is all whilst broadband providers, including our members, have invested over £50 billion to support the government’s target of nationwide gigabit coverage by 2032.
We look forward to continuing to work with the government to ensure broadband continues to be seen as a national priority - ultimately resulting in better outcomes for consumers.
Notes to editors
Read the Telecoms Consumer Charter in full.
The government is also today laying its new Statement of Strategic Priorities for the telecoms, spectrum and postal sectors, which sets out how Ofcom should support a fair, transparent and competitive retail market, with a strong focus on growth and investment to ensure the UK’s telecoms networks meet growing demand and are fit for the future. The statement can be accessed here.
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