Question to the Department for Science, Innovation & Technology:

To ask the Secretary of State for Science, Innovation and Technology, if she will make a comparative assessment of the affordability of mobile phone contracts based on the (a) Retail Price Index and (b) Consumer Price Index.

We recognise that this is a difficult time for families across the country who are struggling with their bills due to the rise in the cost of living.

A number of operators choose to link their annual price rises to either the Consumer Prices Index (CPI) and Retail Price Index (RPI). Due to the differences in the way they are calculated, RPI is traditionally higher than CPI. Whether CPI or RPI-linked, it is important that clauses within mobile contracts - such as price rises - are clear and transparent so consumers know what they are signing up to.

Ofcom, as the independent regulator, has a statutory duty to monitor ongoing household affordability in the sector, and Part C of their General Conditions require telecoms companies to provide clear information about their services.

On 9 February 2023, Ofcom announced a review into the transparency of in-contract price rises including those linked to CPI and RPI. Ofcom expects their review to conclude by the end of the year. We look forward to reading their findings.