Mid-contract price rises in 2026 cost up to £48 a year, and most customers cannot leave

A plain white broadband router on a wooden side table in a British living room

The largest fixed mid-contract rise applied in 2026 was £4 a month, or £48 a year. BT and EE broadband, Virgin Media broadband and TV, and TalkTalk broadband all landed on that figure. Sky came in at £3, Vodafone home broadband at £3.50, Three mobile at £1 to £1.50 by data tier.

The second number matters more. For almost everyone paying those rises, the penalty-free exit right does not apply. Ofcom’s rules, in force since 17 January 2025, require any in-contract rise to be set out in pounds and pence at the point of sale. A rise written into the contract is a term already agreed, not a change, so it triggers no right to leave. The rule bought certainty, not a way out.

What did Ofcom’s pounds and pence rule actually change?

Ofcom banned inflation-linked and percentage-based price rise terms in new phone, broadband and pay TV contracts in a statement published on 19 July 2024, effective 17 January 2025. Providers must state the cash amount before the customer signs, and say when it applies.

The problem it solved was comprehension, not cost. Ofcom found 55% of broadband customers and 58% of pay monthly mobile customers did not know their contract held an inflation term. Nothing in the rule caps the amount: a provider can write £4 a month into the contract, charge it every April for the life of the deal, and be compliant.

What did each provider add to bills in 2026?

Every figure below comes from the provider’s own published terms. Amounts differ within the same provider by contract start date, which is why two households on identical packages face different rises. Across broadband and mobile, the newer the contract, the larger the built-in rise.

Provider and product Fixed rise each year Applies to contracts from
BT and EE broadband £4.00, or £3.00 a month 6 August 2025, or 10 April 2024
BT and EE TV £2.00 a month, £24 a year 10 April 2024
EE mobile airtime £2.50, or £1.50 a month 31 July 2025, or 10 April 2024
Sky broadband £3.00 a month, £36 a year Most customers, April 2026
Sky Mobile £1.50 a month, £18 a year Most customers, 14 February 2026
Virgin Media broadband and TV £4.00, or £3.50 a month 2 October 2025, or 9 January 2025
O2 mobile airtime £1.80 a month, £21.60 a year 11 November 2024
Vodafone broadband and airtime £3.50 and £2.50 a month Current pounds and pence terms
Three mobile £1.00 to £1.50 a month by data tier 8 September 2024 to 8 November 2025
Three home broadband £2.00 a month, £24 a year 8 September 2024 to 8 November 2025
TalkTalk broadband £4.00, or £3.00 a month 16 November 2025, or 12 August 2024

Sources: published terms of BT, EE, Sky Group, Virgin Media, Virgin Media O2, Vodafone, Three and TalkTalk, listed below. Rises apply on 31 March or 1 April, except Sky Mobile on 14 February 2026.

Older contracts keep their percentage terms. Virgin Media customers who last contracted before 9 January 2025 remain on RPI plus 3.9%, TalkTalk customers from before 12 August 2024 on CPI plus 3.7%, and BT and EE legacy customers were on CPI plus 3.9% until BT moved out-of-contract customers onto fixed amounts from 1 March 2026.

Does switching pay once the early termination charge is counted?

Usually not, while the contract still has time to run. Take a household paying £30 a month with eight months of the minimum term left, facing the £4 rise.

Line Figure
Price after the April rise £34 a month
Extra cost of the rise over 8 remaining months £32
Illustrative best comparable new deal £26 a month
Saving if the household switched today £8 a month, £64 over 8 months
Early termination charge the switch must beat Under £64, on £272 of remaining contract value

Illustrative worked example. Ofcom’s rules require an early termination charge to be no more than the payments remaining, less costs the provider saves by not supplying the service.

The switch pays only if the exit charge lands under £64, a quarter of the remaining contract value. Discounted charges rarely fall that far with eight months outstanding, so absorbing the £48 and diarising the end date is usually cheaper. The saving sits at the end of the term, not before it. Ofcom research published on 26 February 2026 found out-of-contract customers spend £7 to £9 a month more than those on a current deal, £84 to £108 a year, which dwarfs every rise above. The method is set out here.

A pile of unopened white envelopes and reading glasses on a kitchen table beside a cup of tea

How do the telecoms rises compare with energy and water in 2026?

Switching options differ completely across telecoms and the energy and water markets.

Bill 2026 change Who sets it
Broadband, largest fixed rise Up £48 a year, £4 a month The provider’s own contract term
Water and sewerage, England and Wales Up £33 a year to £639, 5.4%, from 1 April 2026 Ofwat determinations, no supplier choice
Energy, typical dual fuel direct debit Up £60 a year to £1,723, 4%, 1 October to 31 December 2026 Ofgem price cap, reviewed quarterly

Sources: Ofgem, 26 August 2026. CCW, 29 January 2026.

Ofgem confirmed the £1,723 cap on 26 August 2026, a £60 rise driven mostly by gas, and energy can at least be switched on any day. Water cannot: CCW reported on 29 January 2026 that the average bill rises £33 to £639 from 1 April 2026, and Mike Keil, its Chief Executive, criticised the “postcode lottery of financial assistance” between companies. Broadband sits in the middle: a competitive market the contract stops most households acting on.

Where has the pounds and pence rule already been tested?

Here is the counterweight to the idea the rule fixed the problem. On 30 October 2025 Ofcom said it was disappointed by O2’s decision to raise mid-contract prices beyond what customers had agreed, that it went against the spirit of rules meant to give certainty, and that it had written to the major mobile companies about fair treatment.

That cuts both ways. A provider willing to change the figure can work around transparency. But the consequence is real: exceeding the agreed term brings 30 days’ notice and a penalty-free exit, the one route out that customers on a disclosed rise do not have.

Who is exempt from the 2026 rises?

Social tariffs are largely protected. Virgin Media exempts Essential broadband, Essential broadband plus, Talk Protected and Flex, Sky froze its broadband social tariff again, Vodafone raises nothing for social tariff or financially vulnerable customers, and O2 exempts the Essential Plan. The protection only counts if claimed: Ofcom counted 532,000 social tariff customers in June 2025, against 70% of eligible households who did not know they existed.

Frequently asked questions

Can a customer cancel because of a 2026 mid-contract price rise? Only if the rise was not written into the contract in pounds and pence at the point of sale. Where it was, there is no penalty-free exit. Where a provider exceeds the agreed figure, Ofcom requires 30 days’ notice and a free exit.

Why do two people with the same provider face different rises? The amount is fixed by contract start date. EE broadband rises £4 a month on contracts from 6 August 2025 and £3 on contracts from 10 April 2024.

Are inflation-linked rises still legal? In contracts signed before 17 January 2025, yes. Ofcom’s ban covers new contracts only and does not rewrite older terms.

Does the rise apply to handset payments and add-ons? Generally not. Vodafone excludes device plans, Three excludes device finance and add-ons, and O2 freezes handset repayments. Out of bundle charges often stay inflation-linked, at CPI plus 3.9% for Vodafone.

Sources

This article describes how the rules and published tariffs work. It is not financial advice.…

Fintech Markets Creating New Opportunities for Growth

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Fintech Markets Driving Digital Financial Innovation

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