Ofcom broadband price rise rules have worsened consumer outcomes

Ofcom’s rules on mid-contract broadband price rises have had a negative effect on consumer finances says comparison platform Broadband Genie

Broadband Genei has called for a ban on mid-contract broadband price rises saying regulatory changes have worsened outcomes for consumers.The move follows the publication of its 2026 white paper, which claims fixed, upfront price increases introduced under new rules from Ofcom could generate an additional £186 million in revenue for providers over the next 12 months.

Broadband Genie strategist Alex Tofts, said: “over the next 12 months, some of the largest internet service providers are set to profit an additional £186 million compared to the previous inflation-linked system.

“The rules have clearly not achieved their intention of making broadband deals more transparent.

“Not only are customers still unsure what will happen to their bill, but some of the most vulnerable customers will be the hardest hit. It was always clear the only way to make things transparent for customers was to ban mid-contract price rises. We believe the price customers see is the price they should pay.”

Price hikes “worse than inflation-linked model”

Ofcom’s reforms were introduced to improve bill transparency and prohibit inflation-linked increases during minimum terms, but they allow providers to apply fixed, pre-disclosed annual rises in pounds and pence.

Broadband Genie argues the shift has hit customers on lower-cost tariffs, where fixed increases translate into significantly higher percentage rises.

Analysis from the report suggests average bill increases of around 10 per cent under the new model, compared to roughly eight per cent under the previous inflation-linked approach.

In some cases, says Broadband Genie, the impact is more pronounced. A £4 increase on a typical £22 monthly broadband deal equates to a rise of around 18 per cent, according to the firm’s calculations.

Annual increases

The report highlights a range of price adjustments across major UK providers, with percentage increases varying widely depending on average monthly cost.

Operators including Virgin Media, BT Group, EE, TalkTalk, Vodafone and Sky are among those implementing fixed annual increases, typically ranging between £3 and £4 per month.

Lower-cost providers are seeing the highest proportional increases. For example, smaller tariffs below £20 per month can experience rises exceeding 20 per cent under the fixed model.

Mixed response

Operators cite inflationary pressures, network investment requirements and rising operational costs.

Vodafone said: “From 2 July 2024, Vodafone introduced a clear, fixed-rate price adjustment, no longer linked to inflation, to give customers greater certainty and transparency over their bills, in line with Ofcom’s requirements. Vodafone continues to offer strong value, with average bills lower than many competitors and some of the UK’s most affordable social tariffs. Customers on Vodafone Essentials, VOXI For Now, and those registered as financially vulnerable are exempt from any price increases.”

BT Group, EE, TalkTalk and Virgin Media declined to comment.

Pete Ames, Boradband Genie head of marketing, said the new system has enabled some providers to increase revenues beyond what would have been achieved under inflation-linked pricing. He added that the regulator’s intervention had been “ill-thought-out” and called for a complete ban on in-contract price rises.

Growing regulatory pressure

The campaign reflects increasing scrutiny of telecoms pricing practices, particularly as broadband connectivity is viewed as an essential service for households and businesses alike.

While Ofcom has signalled ongoing work to improve fairness and transparency in telecoms billing, it has not committed to prohibiting all mid-contract price increases.

Broadband Genie is now urging both consumers and industry stakeholders to support stronger regulatory intervention, including a total ban on in-contract price rises.

Channel implications

For the channel, the debate raises broader questions around customer trust, retention and long-term contract strategy.

Retailers and resellers may face increased churn risk as customers become more price-sensitive, while providers could come under pressure to differentiate through pricing stability as well as network performance.

With inflationary pressures easing but consumer expectations rising, pricing transparency is likely to remain a key battleground across the UK broadband market in 2026.