Mid-contract price rises: How they work

Broadband and mobile providers have increasingly taken to raising their prices each year for customers stuck within a minimum term contract.

Previously based on a measure of inflation, Ofcom has now banned inflation-linked mid-contract price rises, but not the price rises themselves.

Many providers continue to increase prices on an annual basis, just now by a pounds and pence-based amount instead.

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How much are prices increasing by?

Ofcom has now banned inflation-linked price rises, a rule that came into effect for all new contracts and recontracts taken out from 17 January 2025 onwards.

This means broadband providers have had to update their pricing policies and terms. BT, Plusnet, EE, Vodafone, and TalkTalk have all moved to a fixed annual increase-a set amount in pounds and pence-typically adding around £3 to £4 per month to broadband packages.

However, contracts agreed before January 2025 may still include inflation-based increases, such as the Consumer Price Index (CPI) + 3.9% formula that many providers used previously. These inflation-linked rises remain valid under existing contracts, as Ofcom's new rules apply only to new agreements.

To add a little complexity, some providers - notably O2 - have also begun applying updated pricing terms to existing customers, even outside new contracts.

From now on, any new or renewed broadband contract will be subject to the following fixed annual price rises from each provider (note that the amounts for TV and mobile services may differ, which we'll cover below).

When it comes to the old inflation-linked method, providers often based their increases on the Consumer Price Index (CPI) from different months. This led to variations in how much prices actually rose. In addition, the timing of these increases also differed between providers - although most typically applied them around April each year.

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Can I leave my contract if prices are raised?

Usually the unfortunate answer to whether you can leave your broadband contract early if prices are increased is no, or at least not without paying early leaving fees.

This is because Ofcom currently allow providers to increase prices of both in-contract and out of contract customers as long as the price increase is clearly specified at the point of sale and in the terms and conditions.

Even in Ofcom's new rules, which came into effect from January 2025, providers are still allowed to increase prices annually. The only thing that has been ruled against is continuing to use either inflation-linked or percentage-based price rises.

This is true therefore of all the providers listed in the table above where they specify that prices will increase by a particular amount, including BT, EE, Plusnet, TalkTalk, Vodafone, and Virgin Media.

The main exception to this approach is Sky, its subsidiary NOW Broadband, and Gigaclear, which use "prices may change" terms. These providers notify customers at least 30 days in advance of any increase and specify exactly how much prices will rise. Importantly, this notice has always included the option for customers to reject the increase and cancel their contracts without penalty.

Recently, O2 increased its annual broadband price rise from £1.80 to £2.50 per month. For new and renewed contracts, this increase cannot be rejected. However, when O2 extended this change to existing customers, it was treated as a modification to their terms and conditions. Under regulatory rules, O2 was required to provide 30 days' notice and the option to cancel early without penalty.

It's worth noting that when a provider changes the terms of a contract and issues a notice, customers are typically given a limited window - usually 30 days - to contact the provider and cancel. If they do not respond within this period, the new terms are automatically accepted, as though a new contract had been agreed.

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Further details: Price rises by provider

Some customers may be free from price rises depending on when they took their current contract out.

Here's the details of each broadband provider's annual price rises.

BT, Plusnet, and EE

BT was the first provider to announce their pricing policy would be updated to a pounds and pence based method, with a £3 increase on broadband and a £2 rise for TV plans effective on contracts taken out from 10th April 2024.

Since then, however, BT and EE have increased their annual price rise amount to £4 per month for broadband contracts taken out from 31st July 2025, while the £2 increase on TV plans remains the same.

EE mobile contracts will also be increasing by £1.50 per month for new and recontracting customers, while Plusnet broadband contracts taken out after 11th July 2024 will see annual price rises of £3 per month, or those taken out after 5th August 2025 will see price rises of £4 per month in March of each year instead.

Existing customers with older contracts will still be subject to the old CPI + 3.9% annual price rises for BT, EE, and Plusnet, which saw prices rise by 7.9% in April 2024.

Customers with these providers who are still within their minimum terms won't be able to cancel their contracts early without penalty as the providers all include the £4 per month or CPI + 3.9% increase in their terms.

Vodafone

Vodafone's fixed-line broadband contracts taken out or renewed from 2 July 2024 include an annual price rise of £3 per month, and customers cannot exit their contracts early when these increases take effect.

However, Vodafone has since raised these annual increases further. For new contracts signed from 12 November 2025, broadband prices will rise by £3.50 per month, while mobile plans will increase by £2.50 per month each year.

Previously, Vodafone applied inflation-linked increases, using the January CPI figure plus 3.9%, which took effect each April. Under this system, prices rose by 7.9% in April 2024, in line with BT's adjustments.

Customers who joined before 2 February 2021 remain on contracts linked to the Retail Price Index (RPI) + 3.9%. These increases are often slightly higher, as RPI typically exceeds CPI.

TalkTalk

From 12th August 2024 all new TalkTalk broadband contracts will be subject to an annual price rise of £3 per month.

Prior to this, TalkTalk increased prices by CPI + 3.7% and used the January figure of inflation, which saw prices rise by 7.7& in Spring 2024.

As with the providers above, as these price rises are specified amounts in the contract customers are unable to exit their contracts early without penalty when prices go up.

Sky and NOW Broadband

Sky and subsidiary NOW Broadband state that "prices may increase" during a minimum term. Since Ofcom's announcement of rule changes, their stance hasn't changed either, so we can expect it likely to continue for the foreseeable future.

In 2025, Sky increased prices by an average of 6.2%, with broadband plans increasing from between £1 and £4 per month. The year before, Sky TV and broadband prices went up by 6.7%.

Similarly, NOW Broadband prices went up by £3 per month in 2025, as well as in 2024, and by £3.50 per month in 2023.

Both providers gave customers 31 days from receipt of the notifications to cancel their contracts and leave penalty free if they didn't want to accept the price rises.

Virgin Media

Virgin Media introduced annual price rises of £3.50 per month across its broadband, TV and phone plans from 9 January 2025, while O2 mobile contracts implemented annual increases of £1.80 per month at the same time.

From 2 October 2025, new and renewed Virgin Media contracts will see a higher annual increase of £4 per month. Similarly, O2 has raised its annual price rise to £2.50 per month, effective 23 October 2025. Unlike Virgin Media, however, O2 has also applied this change to all existing customers, not just new or recontracted ones.

Virgin Media previously updated their annual price rise policy in April 2023, when they implemented contract-specified rises of Retail Price Index (RPI) + 3.9% in a move to streamline with partner O2.

So, contracts taken out after April 2023 (and before January 2025) will be subject to annual price rises of RPI + 3.9%, which was 8.8% in 2024, and customers can't leave their contract early.

Contracts taken out before April 2023 are subject to different terms again, with Virgin Media previously saying customers could exit their contract penalty free if prices ever go up.

Community Fibre

Community Fibre have now moved to a pounds and pence-based method of annual price rises, increasing their prices by £2 per month in April of each year.

Previously, Community Fibre increased prices by CPI + 2.9% in their contracts after switching to annual price rises in late 2021. For contracts taken out between these times, Community Fibre use the January figure of CPI, and increase prices in April of each year. Prices rose by 6.9% in April 2024.

Gigaclear

Customers who signed up to Gigaclear before 1st March 2022 aren't subject to mid-contract price rises as their contracts were taken out when the provider was offering fixed prices.

Anyone who signed up to Gigaclear between March 2022 and September 2024 will be subject to annual price rises of CPI + 3.5%. Gigaclear were slightly different from most other providers in that they increased prices in October, rather than April. They also used the July rate of CPI which was 2.2% in 2024, and so Gigaclear prices went up by 6.4% this year.

From September 2024, Gigaclear have now moved to "prices may rise" terms, and say customers will be given notice to exit their contract if they reject the price increase.

Hyperoptic

While Hyperoptic used to champion no mid-contract price hikes, they've too now ditched fixed prices in favour of a £3 per month annual price rise in April of each year.

This policy change wasn't implemented until June 2025 however, so contracts taken out prior to 3rd June 2025 will still benefit from fixed prices.

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Regulation of mid-contract price rises

In July 2024, Ofcom banned inflation-linked mid-contract price rises, with providers told to use more transparent pounds and pence-based rises instead.

The announcement followed a consultation on the ban after Ofcom started investigating the fairness of mid-contract price rises in February 2023 when a period of high inflation saw annual price rises go as high as 17.3%.

The regulator decided that the use of inflation as a price rise method wasn't clear enough for consumers to fully understand the cost implications when they took out a contract. They also banned the use of percentage-based increases for similar reasons, instead suggesting providers should give customers an exact amount in pounds and pence.

While the pounds and pence-based method is certainly clearer and easier to understand, it too has its downsides however.

For example, we've now seen most providers move to annual price rises of £3 per month on broadband, but this penalises those on cheaper tariffs more than those already paying larger bills.

This is something that's already been picked up by Three, with their implementation of a tiered system based on how much data allowance a mobile plan has.

It's also the case that customers paying £3 per month increases will actually be paying more than they would have done on the older CPI + 3.9% method, as inflation has now fallen to 3.8% as of September 2025.

A £3 per month increase on an average broadband bill of £35 would amount to an increase of 8.5%, while CPI + 3.9% would currently be just 7.7%. Inflation is also currently thought to be temporarily high and expected to fall back to the Government target of 2% by 2027.

It's note-worthy then that these changes made by Ofcom were prompted by high annual price rises, with the Culture Secretary at the time, Michelle Donelan, saying, "At a time when families are struggling to pay their bills, imposing above-inflation price hikes is not the right thing to do."

In recent months, several major providers - including BT, EE, Plusnet, Virgin Media, O2, Vodafone, and Three - have further increased their fixed annual price rises. For broadband customers, the yearly increase now stands at £4 per month with BT, EE, Plusnet, and Virgin Media.

So, while clearer, annual price rises don't look to be getter any cheaper, as providers have now locked-in "above inflation" price rises under Ofcom's new rules.

In addition, O2's decision to extend its higher annual price rise to all existing customers has prompted the Government to urge Ofcom to re-examine mid-contract price rises and to "go further, faster" in strengthening regulation of the market.

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Fixed broadband prices

While the majority of broadband and mobile providers now have contractual annual price rises, there are still a small selection who offer fixed prices.

Fixed prices mean the provider contractually promises not to increase prices during a customer's minimum term. If they do so, the customer would be allowed to leave their contract early without penalty.

Nationally-available providers offering fixed broadband prices currently includes Rebel Internet and Zen Internet.

Smaller, more localised, providers also tend to be more likely to offer fixed prices, with Fibrus, Toob, Hey! Broadband, Airband, BeFibre, Quickline, Trooli, Brsk, and LightSpeed, all promising no mid-contract price hikes.

However, while Zen Internet promise fixed prices it's also worth remembering they tend to have higher prices to start with, so customers won't always save more by opting for a fixed price broadband provider.

Read more on fixed prices and who offers them in this guide.

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Summary: further regulation needed

Mid-contract price rises have become the norm in both the broadband and mobile sectors over the past few years, with very few providers left offering fixed prices.

While a period of high-inflation has now seen the end of inflation-linked mid-contract price rises, consumers aren't totally protected from them yet, with many providers simply moving over to a pounds and pence-based method, that could be more expensive, instead.

It's true however, that with clearer pricing customers are better able to decide affordability, but sometimes finances change, and bills still going up is not helpful when we're also stuck in a minimum term contract.

So, while mid-contract price rises seem to have moved in the right direction, there's still a big question mark over whether Ofcom are doing enough to protect customers fully from these annual price hikes during contracted periods, and whether they're really necessary at all.