New broadband and mobile rules in England face criticism over “two glaring gaps”

New rules for broadband and mobile pricing have been introduced in England, aiming to protect consumers from unfair price hikes. However, BBC and ITV star Martin Lewis has raised concerns over “two glaring gaps” in the latest Telecoms Consumer Charter agreed upon by the Labour Party government and major service providers.

Taking to X, Martin Lewis explained that while the charter is a step forward, it falls short in critical areas. He mentioned his own involvement, stating that the charter partly responds to his letter to the Chancellor regarding O2’s repeated price increases during contracts.

“I am cautiously optimistic that the ‘Telecoms Consumer Charter’ is an improvement within the narrow range of issues it addresses. It should mean more people are aware of social tariffs, and we are less likely to see a repeat of O2’s ‘price hike on a price hike’, where customers were told at sign-up how much prices would rise by mid-contract, only to be hit with further increases later on,” Lewis said.

However, he pointed out two major flaws that remain unaddressed and undermine consumer protections:

Transparency alone doesn’t prevent price rises. While firms are required to inform customers in clear pound-and-pence terms about mid-contract price increases, this transparency doesn’t cap the magnitude of those increases. In some cases, customers have faced even larger rises than before, despite the new notification rules.
The ‘variable pricing’ loophole persists. Companies like Sky continue to operate pricing models that allow mid-contract price changes. Although customers have the right to leave within 30 days of notification, many only notice the increase when it appears on their bill, making this protection ineffective in practice.

Martin Lewis advocates a straightforward solution: “Ban firms from increasing prices above inflation during fixed-term contracts. If that were implemented, the problem would be solved.”