The campaign led by Martin Lewis urges the Government to prohibit mid-contract price hikes above the inflation rate following a surge in bills for numerous broadband and mobile customers.
Telecom companies are now required to inform customers about the exact amount their bills will increase by in monetary terms, a regulation put in place after households faced steep price hikes of up to 17% in 2024 due to inflation spikes.
However, an analysis conducted by MoneySavingExpert.com on more than 47,000 tariffs revealed that three out of four customers were worse off under the new system introduced by Ofcom.
In nearly all instances, customers experienced price increases above the inflation rate under the revised system, with social tariffs, designed for individuals receiving benefits, being significantly impacted.
WHATSAPP GROUP: Receive the latest money news and top deals directly on your phone by joining our Money WhatsApp group here. Exclusive offers, promotions, and advertisements from us and our partners are available to our community members. If you wish to leave our community, you can do so at any time. For more information, you can view our Privacy Notice.
According to the MSE analysis, individuals with a data limit below 10GB were negatively impacted by 99%, while 28% of those with unlimited data saw increased costs.
Regarding broadband, all users with a 150MB speed experienced a financial setback, whereas 65% of those with a 900GB speed paid more.
For mobile services, customers facing a £2.50 rise in April would generally need to have been paying over £34 per month to benefit from the new rules, while broadband users dealing with a £4 increase typically required a monthly payment close to £55.
Earlier this year, Chancellor Rachel Reeves introduced a voluntary Telecoms Consumer Charter, mandating companies to provide upfront clarity on any impending price adjustments.
Martin Lewis advocates for a complete ban on mid-contract price hikes above the inflation rate, going beyond the current regulations. The MoneySavingExpert.com founder is presenting evidence today at the House of Commons Public Accounts Committee on issues related to broadband, water, and energy expenses.
Martin Lewis, the MoneySavingExpert.com founder, remarked
