You signed a contract at one price, but now your provider is hiking it mid-term. Whether it’s your mobile phone, broadband, gym membership, or other service, mid-contract price increases feel unfair. But are they legal? And can you do anything about it? This guide explains your rights when companies raise prices during your contract.
This article is for informational purposes only and does not constitute legal advice.
The Short Answer
You generally can’t sue over mid-contract price increases if the contract allows them—but you may have the right to exit penalty-free. For telecoms (mobile, broadband, TV), Ofcom rules give you specific protections. For other contracts, your options depend on the terms you signed.
Mid-Contract Price Rises: Are They Legal?
Unfortunately, yes—in most cases. Companies can include terms in contracts allowing them to increase prices during the contract period. However, the law requires:
- The right to increase must be in the contract – They can’t just invent new terms
- The method must be clear – For example, “prices will rise by CPI + 3.9% each April”
- You must be given notice – Usually 30 days minimum
- The term must be fair – Under the Consumer Rights Act 2015, unfair terms can be challenged
Your Rights for Mobile, Broadband and TV Contracts
Ofcom, the telecoms regulator, has specific rules that give consumers strong protections:
The 30-Day Exit Rule
Since December 2021, Ofcom rules state that if your provider notifies you of a price increase that wasn’t clearly set out when you signed up, you have 30 days from notification to leave penalty-free.
This applies to:
- Mobile phone contracts
- Broadband
- Home phone
- Pay TV services
When You CAN Exit Penalty-Free
- The price rise wasn’t clearly explained at the point of sale
- You weren’t told prices would increase by a specific amount (e.g., “CPI + 3.9%”)
- You act within 30 days of being notified
When You CAN’T Exit Penalty-Free
- The contract clearly stated prices would rise by a set formula (like CPI + X%)
- You were told at sign-up and it was in writing
- The increase matches exactly what was promised
Many providers now bake inflation-linked rises into contracts specifically to prevent penalty-free exits. Check your original contract terms.
Recent Example: Sky Mobile (January 2026)
Sky is increasing mobile prices by £1.50/month from February 2026—their first mid-contract hike in seven years. Because this wasn’t in original contracts for many customers, affected customers can leave penalty-free within 30 days of notification.
This is exactly how the Ofcom rules are supposed to work.
What About Other Contracts? (Gyms, Subscriptions, etc.)
For non-telecoms contracts, there’s no Ofcom protection, but consumer law still applies:
Consumer Rights Act 2015
Contract terms must be fair. A term allowing unlimited price increases with no right to exit could be challenged as unfair. The Competition and Markets Authority (CMA) has taken action against companies with unfair terms.
What Makes a Price-Increase Term Unfair?
- No cap on how much prices can rise
- No right to exit if you don’t accept the increase
- Hidden in small print that wasn’t drawn to your attention
- Disproportionate to actual cost increases
Can You Actually Sue?
Technically, yes—but it’s rarely the best option. Here’s when legal action might be appropriate:
You May Have Grounds to Sue If:
- The price increase wasn’t in the contract at all (breach of contract)
- The term allowing increases is unfair under consumer law
- You suffered significant financial loss
- The company refuses to let you exit despite having the right
- You’ve been charged early termination fees you shouldn’t owe
But Consider This First:
- Small claims limit: For claims under £10,000, you’d use the small claims court
- Cost vs. benefit: Legal fees may exceed what you’d recover
- Time and stress: Court cases take months
- Alternative routes: Ombudsmen and regulators may be faster and free
Better Options Than Suing
1. Exercise Your Right to Exit
If you have a penalty-free exit right, use it. Contact your provider in writing within 30 days stating you’re leaving due to the price increase.
2. Complain to the Company
Make a formal complaint. Companies sometimes offer goodwill gestures, discounts, or agree to waive fees to keep customers.
3. Escalate to an Ombudsman
For telecoms, if your complaint isn’t resolved within 8 weeks (or you get a “deadlock letter”), you can escalate to:
- Ombudsman Services: Communications – www.ombudsman-services.org
- CISAS – www.cedr.com/consumer/cisas
Check which ombudsman your provider uses—they’re required to tell you.
4. Report to Ofcom or Trading Standards
While Ofcom doesn’t resolve individual complaints, reporting problems helps them identify companies breaking rules. Report at www.ofcom.org.uk/make-a-complaint.
For non-telecoms contracts, contact Citizens Advice Consumer Service (0808 223 1133) who can refer to Trading Standards.
How to Challenge an Unfair Term
If you believe a price-increase clause is unfair:
- Write to the company stating you believe the term is unfair under the Consumer Rights Act 2015
- Cite specific reasons – no exit right, disproportionate increase, hidden terms
- Request they waive the increase or let you exit
- If refused, complain to the CMA – www.gov.uk/cma
- Consider small claims court if you’ve suffered actual loss
Template: Letter to Exit Contract After Price Rise
Use this template when exercising your right to leave:
Dear [Provider],
I am writing regarding the price increase notification I received on [date].
As this increase was not clearly set out when I entered my contract on [original date], I am exercising my right under Ofcom’s General Conditions to terminate my contract without penalty within 30 days of notification.
Please confirm cancellation of my contract and confirm no early termination charges will apply.
My account number is: [number]
Yours faithfully,
[Your name]
Key Takeaways
- Mid-contract price rises are usually legal if the contract allows them
- For telecoms, you often have 30 days to exit penalty-free if the rise wasn’t clearly disclosed upfront
- Unfair contract terms can be challenged under the Consumer Rights Act 2015
- Ombudsmen are usually better than courts for resolving disputes
- Always check your original contract terms before taking action
Don’t just accept price increases. Check your rights, and if you can exit penalty-free, consider whether switching to a better deal makes sense.
Related Articles
For more UK consumer rights guides, see:
- Can I Sue My Energy Supplier?
- Can I Refuse to Pay Energy Standing Charges?
- Can I Sue My Bank?
- Can I Sue Debt Collectors for Harassment?
Need free legal advice? See our guide to free legal help in the UK.
