Disconnecting mobile and broadband from inflation has dialled up our bills even more

In April each year, mobile and broadband bills go up for millions of households.

- Ben Zaranko

Until recently, most of the larger providers tied annual bill increases to the economy-wide rate of inflation, plus a fixed amount. Typically, this was the consumer price index (CPI) plus 3.9% – though some unscrupulous operators used the discredited retail prices index (RPI), plus 3.9%.

These terms were introduced from late 2020, but had particularly severe consequences in April 2023. Soaring energy prices pushed CPI inflation into double digits, meaning mobile and broadband bills increased by 14% or more. This dramatic jump is clearly visible in the official price data from the Office for National Statistics (ONS).

In July 2024, Ofcom decided to ban this practice. The regulator decided customers didn’t understand these terms, and that the inflation risk should sit with companies, not households. From January 2025, any mid-contract price rises had to be spelled out in pounds and pence at point of sale.