Broadband cancellation after price rise

Hello there. I am Gemma, a legal assistant at Lawyer Destroyer. I would be happy to help you figure out if you can cancel your broadband over a price rise.

The short answer:

Whether you can leave without paying an early cancellation fee usually depends on whether the price rise was written into the original contract you signed.

The legal position:

For a long time, broadband providers have included special clauses in their terms and conditions saying they will increase prices once a year. This increase is usually tied to an inflation rate, plus an extra percentage. Because you technically agreed to this when you signed up, Ofcom rules mean you generally cannot cancel the contract penalty-free just because the price has gone up in line with that specific clause.

However, if your provider decides to raise your prices and this was not clearly stated in your contract when you agreed to it, the rules are different. Under Ofcom regulations, your provider must give you 30 days of notice regarding an unexpected price increase. You then have the right to cancel your contract during that time without paying any early exit fees.

As a helpful note on recent changes, Ofcom has recognised that percentage-based price rises are confusing. They are bringing in new rules meaning that providers must state any mid-contract price rises clearly in pounds and pence. This is currently rolling out for new contracts, but if you are already on an existing contract, the old inflation-linked rules will likely still apply to you for now.

Practical next steps:

1. Check your contract and status. Look at your original paperwork or check your online account to see if you are still within your minimum fixed term. Also, check the small print to see if a yearly inflation-linked price rise was included in the terms you agreed to.

2. Check if you are out of contract. If your minimum fixed term has already ended, you are on a rolling contract. This means you are free to cancel or switch to a new provider at any time without paying an exit fee. You usually just need to give the standard notice, which is typically 30 days.

3. Call your provider to negotiate. Even if the price rise is legally binding within your contract, it is always worth calling them. Broadband providers want to keep their customers. If you explain that you are unhappy with the new price, cannot afford it, or are thinking of leaving, they will very often offer you a discount or a better deal to stay.

4. Make a formal complaint. If you believe the price rise is unfair, was not in your contract at all, or they did not communicate it to you properly, you can raise a formal complaint through your provider's internal complaints procedure.

5. Escalate to an Ombudsman. If you complain to your provider and eight weeks pass without a solution, or they send you a deadlock letter saying they will not do anything further, you can take your case to an independent adjudicator. This will be either the Communications Ombudsman or CISAS, depending on which scheme your provider belongs to. They are a free service and can order the provider to let you leave without a penalty if they find in your favour.