Martin Lewis has called for an outright ban on above-inflation mid-contract price rises after new analysis by MoneySavingExpert.com (MSE) found that three in four broadband and mobile customers are worse off under Ofcom's current pricing transparency rules.
MSE Analysis Reveals Widespread Disadvantage
The MSE study examined over 47,000 tariffs and discovered that 75% of customers ended up paying more under the new system, which requires providers to inform customers of future price increases in pounds and pence. The rules were introduced after households faced price hikes of up to 17% in 2024 due to soaring inflation.
According to the analysis, 99% of people with a data allowance of less than 10GB were worse off, while 28% of those with unlimited data paid more. For broadband, 100% of customers with 150MB speed were worse off, and 65% of those with 900GB speed faced higher costs.
Impact on Mobile and Broadband Customers
Mobile customers facing a £2.50 April increase would typically need to have been paying more than £34 per month to benefit compared with the old rules. Broadband customers facing a £4 rise would need to have been paying almost £55 per month to break even.
Social tariffs, which offer lower prices to people claiming benefits, were among the worst affected, with almost all cases resulting in above-inflation price rises under the new system.
Martin Lewis's Call for Action
Speaking ahead of his evidence at the House of Commons Public Accounts Committee on broadband, water, and energy costs, Lewis said: "This was frustratingly predictable. Let's be plain, it provisionally looks like the regulator's intervention resulted in most contracts costing more."
He added: "Transparency only goes so far, we don't want customers overpaying just because they were told about it first. The solution has always been bleedin' obvious. Just ban above-inflation mid-contract price hikes. Of course, many, including me, would prefer a ban on any mid-contract rise, as the price you sign up for should be the price you pay over the length of the contract. Yet that risks possible market distortion, as firms may lift initial prices as a provision against unexpected costs mid-contract."
Ofcom's Response
An Ofcom spokesperson responded: "We share Martin Lewis's drive to ensure that consumers get the best from their telecoms services at a fair price, and will continue to engage with him on these issues. We are keeping a close eye on the market and will be carrying out an in-depth review of the impact of our rules around pricing transparency, which we'll publish in 2027."
The spokesperson added: "Our other protections mean it's never been easier to switch away to a better deal, while eligible customers in receipt of certain benefits can take advantage of social tariffs at a fixed price. Banning price rises altogether risks unintended consequences, including the death of the introductory discount which benefits both consumers and competition."
How to Save on Broadband and Mobile Bills
If you are out of contract, you are likely paying too much for mobile and broadband. To save money, start by comparing prices online. Check how many minutes and texts you currently use, or your broadband speed, as many people pay for higher allowances they do not use. You can then switch to a new provider or haggle with your current one for a better deal. If you claim benefits, check if you are eligible for a cheaper social tariff.
