Chancellor summons telecoms bosses to demand action on mid-contract price hikes
Chancellor Rachel Reeves has called a meeting of telecoms bosses to demand greater protection for consumers against mid-contract price rises.
Ms Reeves and Technology Minister Liz Kendall said more needed to be done to ensure “hard-working consumers” were not faced with price increases they did not agree with.
They told telecoms chief executives that “more needs to be done to protect consumers so that ordinary people can feel empowered when engaging with the industry and confident they will get a good deal”.
In a letter to bosses, the government called on the industry to strengthen its commitment to treating customers fairly, including confirming that contract customers will not face price increases beyond those they signed up for.
Ministers said they will hold a roundtable with industry leaders shortly to discuss further action to support customers, as well as areas where the Government can do more to encourage investment in the UK’s digital infrastructure.
The move follows growing anger from customers and consumer groups over rising mobile and broadband tariffs.
Last month Virgin Media O2 announced it would increase prices for its 15.6 million mobile customers by £2.50 a month from spring next year; It had previously said the increase would be £1.80.
Other operators such as BT, TalkTalk and VodafoneThree have also announced above-inflation price increases for new customers or those renewing their contracts.
These come after Ofcom changed its rules in January to ban inflation-related mid-contract price increases for TV, broadband and mobile contracts.
But the regulator continued to allow companies to set prices if they expressed prices in pounds and pence, which was thought to be clearer to customers rather than inflation-related percentage terms.
Operators have also been told they must notify customers of the increases in advance or give them 30 days to cancel contracts without penalty after any changes.
Ms Kendall said: “Mobile and broadband bills are a significant, daily cost for millions of us across the country.
“But it is clear to me that companies need to do more to protect their loyal customers – their consumers – who rely on these services to run their businesses and stay in touch with their loved ones.
“When we meet with them soon, I expect company bosses to set out clear plans to protect Brits from unexpected price rises and improve customer communications.
But we know that this must be a joint effort.
“Working together, we want to support industry to invest in the infrastructure we all rely on, ensuring more people across the country can benefit from improved connectivity and access to digital services.”
