Chancellor summons telecoms bosses to demand action on mid-contract price hikes

Chancellor Rachel Reeves has summoned telecoms bosses to a meeting to demand more protection for consumers from mid-contract price hikes.

Ms Reeves and Technology Secretary Liz Kendall said more must be done to ensure “hard-working consumers” do not face price rises they have not signed up to.

They have told telecoms chief executives that “more needs to be done to protect consumers so that ordinary people feel empowered when engaging with the sector and confident they are getting a good deal”.

In a letter to bosses, the Government has called on the sector to reinforce its commitment to treating customers fairly, including by confirming customers under contract will not face price rises beyond those that they signed up to.

The ministers said they will shortly convene a roundtable with industry leaders to discuss further action to support customers, as well as areas where the Government can do more to drive investment in the UK’s digital infrastructure.

The move follows increasing anger from customers and consumer groups over rising mobile and broadband tariffs.

Last month Virgin Media O2 announced it would put up prices for 15.6 million of its mobile customers by £2.50 a month from spring next year, having previously said the increase would be £1.80.

Other operators including BT, TalkTalk and VodafoneThree have also announced above-inflation price rises for new customers or those who renew their contracts.

They come after Ofcom changed its rules in January to ban inflation-linked mid-contract price rises for TV, broadband and mobile contracts.

However, the regulator has continued to allow companies to put up prices if they expressed them as pounds and pence, considered clearer for customers than inflation-linked percentage terms.

Operators were also told they had to let customers know about increases in advance or give them 30 days to cancel contracts penalty free after any change.

Ms Kendall said: “Mobile and broadband bills are an essential, everyday cost for millions of us across the country.

“But it is clear to me that companies need to do more to protect their consumers – loyal customers who rely on these services to run businesses and stay in touch with loved ones.

“When we meet them shortly, I expect company bosses to put forward clear plans to shield Brits from unexpected price rises and improve their customer communications.

“But we know this must be a collaborative effort.

“Working together, we want to support industry to invest in the infrastructure we all rely on and ensure even more people across the country can enjoy improved connectivity and access to digital services.”