Government rules out ban on mid-contract price hikes

During a recent House of Lords debate on mobile and broadband pricing, a minister said the Government has no plans to introduce a ban on mid-contract price rises.

What they did say is that Ofcom is looking into the effectiveness of protections introduced in January 2025, with a report due in spring 2026.

The upcoming report will also examine whether customers can realistically use the 30-day cancellation window when prices go up unexpectedly.

Source: Ofcom

Calls for a ban

The Government has confirmed it has "no plans to ban mid-contract price rises," despite Lord Sikka calling during a House of Lords debate on 9 December 2025 for legislation to do so.

Lord Sikka said that "O2 have violated Ofcom's voluntary code" and raised prices mid-contract without good reason, adding that older and more vulnerable customers are hit hardest because they are less likely to switch providers. He warned that inflation and above-inflation price hikes are "baked into the system" and urged ministers to introduce stronger legal protections.

Other peers highlighted that mid-contract price rises can leave loyal customers paying more than they should, and they stressed the risk of worsening digital exclusion for older or low-income households at a time when internet access is increasingly essential for things like banking, healthcare, and shopping.

In response, Baroness Lloyd of Effra, Parliamentary Under-Secretary of State for Business and Trade and for Science, Innovation and Technology, said the Government has no plans to ban mid-contract price rises. She pointed to existing protections introduced in January 2025, as well as the 30-day notice period, which lets customers leave a contract without penalty if prices go up.

She added that Ofcom is reviewing whether these protections are actually working and whether customers can realistically make use of the cancellation window. The Government argued that it needs to balance protecting consumers with giving telecom providers flexibility to invest in infrastructure. As Lord Vaizey of Didcot noted, operators must fund "world-class mobile infrastructure," which inevitably influences pricing decisions.

However, it's hard not to question whether these protections go far enough. The 30-day notice window and voluntary codes offer some reassurance, but for many people - particularly older or low-income customers - they do little to prevent unexpected, or simply above-inflation, price hikes from hitting already stretched household budgets.

Ofcom's review

The issue has drawn renewed attention after Secretary of State for Science, Innovation and Technology Liz Kendall asked Ofcom in November 2025 to "look at in-contract price rises again," following reports that several major providers increased annual price rises, with O2 rolling out increases to existing customers.

Mid-contract price rises disproportionately affect older or lower-income households, many of whom may not notice changes until it's too late. While updated guidance has improved transparency, it does not stop providers from making unexpected changes to existing contracts or protect customers facing rising living costs.

The shift to a pounds-and-pence based system has actually made the problem worse for lower-income customers. Annual increases are now a flat amount - for example, £4 a month - applied to all plans regardless of cost. Under the old percentage-based system, cheaper plans would have seen smaller rises, but now lower-priced plans are rising proportionally more, putting extra strain on already tight budgets.

Ofcom's report, expected in spring 2026, will review how effective the 30-day cancellation window and other protections are, and consider whether further action is needed to make pricing fairer and more predictable.

Will it be enough?

Even with existing protections and Ofcom's upcoming review, it's unclear whether current measures do enough to protect consumers. Pounds-and-pence rises, which have replaced the previous CPI+X% model, are often higher, leaving customers facing bigger-than-expected bills.

Making price rises more transparent through updated guidance is a step in the right direction, but it does not stop providers from making unexpected changes mid-contract. Nor does it shield households already under financial pressure.

It also raises the question of whether mid-contract price hikes are necessary at all. Many independent full-fibre providers manage to offer flat, predictable pricing, showing that it is possible to run a profitable service without surprising loyal customers with extra charges.

As Ofcom prepares its report, the key question remains: will these protections be enough to prevent consumers from being caught out by unexpected price increases, or is further action needed to make telecom pricing fairer and more predictable?