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Martin Lewis reveals the broadband contract trap costing millions of households more
MoneySavingExpert research found three in four tariffs cost more under Ofcom’s rules, as Lewis said 99% of customers would be better off with a cap.
On Monday, Martin Lewis, Money Saving Expert founder, gives evidence to the House of Commons Public Accounts Committee, arguing that Ofcom's transparency rules have caused most consumers to pay more for broadband and mobile contracts.
Introduced in early 2025, Ofcom's 'pounds and pence' rules required providers to disclose price hikes upfront, yet failed to ban mid-contract increases, leaving millions facing above-inflation costs after bills surged by as much as 17% previously.
MoneySavingExpert analysis of more than 47,000 tariffs reveals a 'poverty premium' where those on cheaper deals face 23 per cent mid-contract rises on average, with 75 per cent of all customers worse off under the new system.
Lewis proposes a straightforward ban on price hikes exceeding inflation, arguing the current system is 'stacked in companies' favour' and that notification windows fail to protect households in practice.
Responding to the criticism, Ofcom confirmed it is monitoring the market and will publish an in-depth review of the pricing transparency rules next year to assess their impact.