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Ofcom’s 2025 Ban on Inflation‑Linked Mid‑Contract Price Rises: What It Means for Your Broadband Bill

Most UK providers have spent the past few years hiking prices every spring by inflation plus about 3.9%. From 17 January 2025 that model stops for new contracts. Ofcom now insists that any price change written into a deal must be stated up‑front in pounds and pence, on the screen or paperwork you sign. Reference: ofcom.org.uk

Our search widget which shows the amazing deals from over 30+ UK ISPs clearly shows any price increases that may be applicable per deal. We make choose transparent and fair.

This widget on SearchSwitchSave.com presents the Virgin Media M125 Broadband Only deal, summarising contract length (18 months), average speed (132 Mb), connection type (Hybrid Fibre-Coaxial), current price (£25.99 pm) and the scheduled price rise to £29.49 from April 2026.

Why Ofcom Stepped In

Six in ten broadband and mobile customers were already on inflation‑linked terms in April 2024. Ofcom’s research showed that barely one in six of those customers could correctly explain how the rises were calculated (source: ofcom.org.uk). Confusion plus double‑digit jumps during the cost‑of‑living crunch triggered the new rules.

When the Ban Applies

  • Applies to: All new phone, broadband and pay‑TV contracts agreed on or after 17 January 2025. ofcom.org.uk
  • Does not rewrite: Deals you signed before that date. Existing terms still run unless you re‑contract or switch. ISPreview notes that, for many people, two different pricing systems will coexist until legacy deals expire. Source: ispreview.co.uk

What Happens to Your Existing Contract

If your agreement was taken out before January 2025 the old inflation‑plus‑X formula still bites. For a £30 package the 2024 model added roughly £1.80‑£2.20 a month this year. The replacement flat‑pounds rises that several big brands have announced for 2025 work out at £2‑£3.50 a month.

How to Check Whether You Are Affected

  1. Grab your latest bill and note the contract start date.
  2. Scan the small print for phrases such as “CPI plus 3.9%” or a table of future £ rises.
  3. Run a live price comparison starting with Check these broadband deals.
  4. If you are free to leave, line up a switch using our Switch‑Broadband Guide or the new One Touch Switch process, now live industry‑wide.

Smart Moves to Keep Costs Down

  • Re‑contract early. Some providers will move you onto a fixed‑price option if you ask.
  • Haggle mid‑term. Ofcom rules let you exit penalty‑free when a provider changes a core price without proper notice. Use that leverage!
  • Watch add‑ons. The ban covers only the core subscription. Call bundles and out‑of‑allowance charges can still rise, so budget for them.
  • Shop around every year. Our shop‑around checklist explains the timings that deliver the biggest wins.
  • Beat spring hikes. Providers still tend to move prices in March or April. Our guide on beating mid‑contract price hikes walks you through the calendar.

What Fixed‑Price Contracts Look Like

From January you should now see wording such as “£30 until 31 March 2026, rising to £31.50 on 1 April 2026” – as per our example above from our Search Switch Save widget. Ofcom’s own example shows how this simple table replaces the CPI‑plus‑X footnote that confused shoppers for years – check it out here: ofcom.org.uk

How One Touch Switch Helps

Since 12 September 2024 you only contact your new provider; they handle the hand‑over and must complete domestic switches within one working day (planned). This makes escaping an inflation‑linked contract almost friction‑free.

Looking Ahead

Ofcom will review the impact after a full price‑rise cycle. If providers sidestep the spirit of the rules with large fixed £ jumps, tougher action could follow. In the meantime:

You now have clear sight of upcoming costs, stronger rights to leave, and a one‑button switching process. Take ten minutes tonight to audit your deal; the effort could trim more than this year’s entire price rise from your next bill.

Best of Luck!

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