Vodafone warns mobile and broadband customers over new bill shake-up

Vodafone has scrapped inflation-based mid-contract price rises ahead of new Ofcom rules. Vodafone changed its policy as of this week - with the new rules being issued in June and taking hold from July 2, 2024, which was Tuesday's date.

From, July 2 2024, Vodafone will inform customers upfront about the exact cost of their contracts in pounds and pence, including when price rises will occur. However, the change will only affect new customers of those renewing a contract with the telecom provider after this date.

For example, customers taking out a contract in August 2024 will see their bill adjusted in April 2025, and then in April 2026, by a predetermined set amount. Vodafone has said that price increases will not be applied to customers identified as financially vulnerable or those on social tariffs.

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Vodafone said plans will increase from £1 a month on mobile and £3 a month for broadband customers. The change comes in response to the telecoms regulator Ofcom's consultation that emphasised the need for transparency in mid-contract price increases.

Ernest Doku, telecoms expert at Uswitch.com said Vodafone's decision to apply the mid-contract charges still means there will be "winners and losers". They said: "Those on cheaper plans will see their contracts increase by a greater percentage, relative to their initial outgoings. For example, broadband customers on Vodafone’s Full Fibre 74 tariff which costs £312 a year will see an annual price increase of 11.5% whereas those on Vodafone’s Full Fibre 910 tariff at a cost of £504 a year will see an annual increase of 7%.

“The change also excludes existing customers and out-of-contract customers, who will still be subject to inflation-linked and percentage-based price hikes come next year. As always, it pays to know where you stand with your mobile and broadband contracts. If you are signing-up to a new contract, carefully review the terms, whether any mid-contract price rises will apply and see if you can save money by switching to a better deal”.