Martin Lewis urges Rachel Reeves 'act now' on Ofcom's flawed price hike rules

The Money Saving Expert has urged the Chancellor of the Exchequer to act on Ofcom's lax rules over mid-contract price hikes by mobile, broadband and pay-TV providers.

Martin Lewishas told O2 customers to "leave" the company after it announced that, in April 2026, up to 15 million mobile customers would see their monthly bills rise by 40% more than the company said they would when people signed up. Customers were originally told there would be a rise of £1.80 a month on their contracts - this has gone up to £2.50. On X, Martin said: "O2 price rise feels like a mockery of Ofcom's consumer protection! O2 has announced that from April 2026, mobile customers will see their monthly bills rise by MORE THAN IT TOLD THEM, £30 a year - up 40% from the £21.60 annual increase previously written into their contracts. You need act quick." Now Ofcomhas spoken out and said: "We want customers to have certainty about their monthly mobile bills so they can plan their household budgets.

"That's why earlier this year we banned unpredictable price rises linked to inflation and instead required providers to tell customers upfront in pounds and pence about any increases in their contract.

"We are disappointed by O2's decision. This goes against the spirit of our rules, which are designed to ensure greater certainty and transparency for customers when they sign up.

"Today, we've written to the major mobile companies reminding them of their obligations to treat customers fairly. We encourage any customer who wants to avoid these price rises to exercise their right to exit without penalty and sign up to a new deal."

The Money Saving Expert has now written to Rachel Reeves, asking her to strengthen Ofcom's flawed price change rules.

He warns that Ofcom's new 'pounds and pence' consumer protection regime risks driving inflationary pressure to the economy and worsening the cost-of-living crisis, and it "could snowball" if other telecom providers follow suit.

Lewis added: "While impacted mobile customers can leave penalty-free - and many should (I will be shouting loud and large for them to do so) - we know only a small minority will.

"Most will likely just have to suck up a rise that was more than they were told when they signed up. This particularly hits older and more vulnerable people who are less likely to switch."