Major broadband and mobile providers have pledged to stop unexpected bill increases by making pricing clearer for consumers at the point of signing up. The commitments form part of the Government's new Telecoms Consumer Charter, signed by BT, Virgin Media O2, VodafoneThree, Sky and TalkTalk.
Under the charter, providers will also make it easier for vulnerable consumers to access social tariffs, which Ofcom estimates could save eligible households up to £220 a year. Firms will proactively signpost social tariffs to eligible customers and offer those facing financial difficulty the chance to move to cheaper plans without penalty.
Technology Secretary Liz Kendall said: “Following action by this Government, telecom companies have now agreed to end unexpected mid-contract price rises and making social tariffs easier to access. These changes will make a real difference to millions of consumers across the country and help with the cost-of-living pressures.”
The charter follows controversy over O2's announcement in November that it would raise prices by £2.50 a month, more than originally promised. Virgin Media O2 chief executive Lutz Schuler welcomed the charter for strengthening “predictability and transparency for consumers”.
However, Martin Lewis, founder of MoneySavingExpert.com, warned that the charter “does nothing to limit the size of the increase” and called for a ban on above-inflation price rises during fixed-term contracts. Which? head of policy Rocio Concha urged O2 to cancel its upcoming price hikes and called for proper enforcement of the law.
