Question to the Department for Science, Innovation & Technology:

To ask the Secretary of State for Science, Innovation and Technology, whether she has made a recent assessment of the potential merits of introducing a cap on mid-contract price rises for broadband providers.

The Government recognises that households across the country are struggling with their bills as a result of the rise in the cost of living.

The Government currently has no plans to intervene into the market to cap price increases. We would expect any such intervention would distort market competition.

However, it is essential that telecoms contracts are fair and transparent and any important clauses, such as in-contract price rises, are made clear at the point of sale.

In December 2023, Ofcom completed its review into the transparency of inflation-linked, in-contract price rises and is now consulting on proposals to ban providers from including CPI or RPI increases in their contracts. Ofcom’s proposals will require providers to set out clearly – in pounds and pence and at the point of sale – the price the consumer can expect to pay during their contractual period. Ofcom’s consultation closes on 13 February 2024. Ofcom expect to reach their final decision in the Spring.