Mobile phone companies will no longer be able to raise charges mid-contract without first explaining exactly in pounds and pence beforehand how much bills will change.
The change follows an outcry when mobile contracts linked to inflation rose by more than 17% in some cases as the consumer price index surged higher two years ago.
Ofcom, the telecoms regulator, said a contract will no longer say the monthly cost “will increase every April by the consumer price index rate published in the previous December, plus an additional 3.9%.”
Instead. from today, using Ofcom's illustration of a £30 a month deal, the contract will state the monthly price is “£30 until 31 March 2025, increasing to £31.50 on 1 April 2025 [and] £33 on 1 April 2026”.
Ofcom said: “From today, any price rise written into a customer’s contract will need to be set out in pounds and pence, prominently and transparently, at the point of sale, and providers will need to be clear about when any changes to prices will occur.
“This will give consumers clarity and certainty about the prices they will have to pay, helping them choose the best deal for their needs.”
Ofcom’s group director for networks and communications, Natalie Black, said: “More than ever, households want and need to plan their budgets. Our new rules mean there will be no nasty surprises, and customers will know how much they will be paying and when through clear labelling.”