Martin Lewis has urged a ban on above-inflation price increases for mobile and broadband contracts in the United Kingdom [1, 2].
The call for reform comes as consumers face rising costs despite signing fixed-term agreements. Lewis argues that the current regulatory framework fails to protect users from unpredictable billing increases during the life of their contracts.
Lewis, the founder of MoneySavingExpert, said that Ofcom's existing reforms regarding mid-contract price rises have failed consumers [1, 2]. He said that if a customer signs up to a fixed-term contract, the price should stay fixed for the length of the deal [1].
According to research from MoneySavingExpert, many customers are paying more under the current rules [2]. Data indicates that almost three in four deals now leave customers worse off than they were under the previous system [1]. This represents approximately 75% of the deals analyzed [1].
Ofcom, the UK communications regulator, defended its current approach to price monitoring. A spokesperson for Ofcom said that their rules are designed to ensure that customers are protected [1].
Lewis continues to advocate for a total ban on any price hikes that exceed inflation during a contract term. He suggests that the current system allows providers to implement increases that undermine the purpose of a fixed-term agreement, providing price certainty for the household budget [1, 2].
“If you sign up to a fixed‑term contract, the price should stay fixed for the length of the deal.”
This dispute highlights a fundamental tension between regulatory oversight and consumer expectations of 'fixed' pricing. While Ofcom maintains that its rules provide sufficient protection, the data suggesting 75% of customers are worse off indicates a gap between policy intent and market reality. If a ban on above-inflation hikes is implemented, it would shift the financial risk of inflation from the consumer to the service provider, potentially leading to higher initial contract prices but greater long-term stability for households.


