The Chancellor and Secretary of State for Science, Innovation and Technology (DSIT) have written to telecoms CEOs, calling for a roundtable to discuss what industry action can be taken to support transparency around consumer pricing. The roundtable would also seek to explore what more the Government can do to drive further investment into the UK’s digital infrastructure.
The letter notes how fundamental the telecoms sector is to the UK economy, and that the government continues to remove barriers to deployment to both fixed and mobile networks. However, it also states that “more needs to be done” to “protect all consumers”.
As a result, the Cabinet ministers call on telecoms companies to reinforce existing commitments to treat customers fairly - including by confirming that customers under contract will not face price rises beyond those that they signed up to - and to also “take further steps” to ensure that consumers have a clear understanding of the service they can expect from their telecoms provider in customer communication.
The letter follows a recent series of correspondence between the DSIT secretary, Liz Kendall, the Chancellor, and the telecoms regulator, Ofcom, regarding the issue of mid-contract price rises.
As a reminder, from January 2025, Ofcom began enforcing a ban on mid-contract price rises linked to inflation. Mid-contract rises now must be in pounds-and-pence, set out when a customer signs up. But as inflation continues to rise and providers are forced to increase their prices, this has caught the attention of Ofcom and the government.
As a result, the Chancellor has requested Ofcom produce an interim review of these changes by Spring 2026, and a full review by 2027. Ofcom has also been asked to review the suitability of the current 30-day notice period rule, and whether it allows consumers to exit their contracts at the point when a price increase takes effect. Finally, the Chancellor states that voluntary commitments from the industry will be sought regarding “unfair pricing practices”, calling on Ofcom to support this process.
