Chancellor Rachel Reeves has taken direct action against the UK's major telecoms providers, summoning their chief executives to a high-level meeting over controversial mid-contract price increases.
Government Intervention
The move comes amid growing public anger and pressure from consumer groups regarding unexpected rises in mobile and broadband bills. Ms Reeves and Technology Secretary Liz Kendall have jointly declared that telecommunications companies must do more to safeguard "hard-working consumers" from price rises they did not explicitly agree to when signing their contracts.
In a strongly-worded letter sent to industry bosses, the government called on the sector to reinforce its commitment to treating customers fairly. This includes a specific demand for confirmation that customers under contract will not face price increases beyond those they originally signed up for.
Industry Response and Upcoming Talks
The ministers announced they will shortly convene a roundtable with industry leaders. This meeting will serve a dual purpose: to discuss further action to support customers and to identify areas where the government can help drive investment in the UK's crucial digital infrastructure.
This government intervention follows a series of unpopular announcements from major providers. Last month, Virgin Media O2 revealed it would increase prices for 15.6 million mobile customers by £2.50 per month starting next spring, a significant jump from a previously indicated increase of £1.80.
Other operators, including BT, TalkTalk, and VodafoneThree, have also implemented above-inflation price rises for both new customers and those renewing their contracts.
Regulatory Context and Consumer Rights
This situation has developed despite regulatory changes by Ofcom. In January, the communications regulator banned inflation-linked mid-contract price rises for TV, broadband, and mobile contracts.
However, Ofcom continues to permit companies to implement increases if they are expressed in clear pounds and pence terms, which the regulator considers more transparent for customers than percentage increases linked to inflation indices.
Under current rules, operators are required to notify customers of any impending price rises in advance. Crucially, they must also provide customers with a 30-day window to cancel their contracts without penalty following any such change.
Technology Secretary Liz Kendall emphasised the essential nature of these services, stating: "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."
She added that at the upcoming meeting, she expects company bosses to present clear plans to shield Britons from unexpected price hikes and to improve their communication with customers, while acknowledging that a collaborative effort is needed to also support industry investment.
