Your guide to mid-term contract price increases

If you're not a fan of opening bills as soon as they pop through your letterbox, then you might want to reconsider at this time of year.

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That's because you'll soon start to receive notifications about all of your regular payments that are increasing in April - especially your mobile phone and broadband bills.

The good news is the rules around “mid-term contract price increases” have changed, so these bill hikes will not be as large in the future. But as is so often the case, it's not all clear cut.

Here's my guide.

Why do mobile and/or broadband contracts go up each April?

Mobile and broadband firms reserve the right to raise the price of your deal each year. In the past, this has involved inflation-busting price increases.

Regulator Ofcom banned inflation-linked mid-contract price rises from January 17 this year, but that does not mean all price rises are banned.

If you sign up to a new contract, you will now be told “in pounds and pence” about future price rises.

Your bills can increase each year, but you will be told up front by how much - and the price rise won't be linked to inflation rates.