Having shopped around recently for phones/broadband etc., every single supplier has this price increase warning somewhere on their site very visible before you sign up, usually in the checkout page.
Some providers will increase prices in line with CPI, some increase by CPI+X%, and a very small amount will give a fixed price.
Should their be any price increases outside of this, then you can leave your contract penalty free within 30 days of the price increase.
That may be the case now but not when I signed up
In the terms and conditions probably, 'government mandatory' complete rubbish!
The only thing the government is going to possibly mandate (presumably via OFCOM) is the maximum they're allowed to increase it by.
I think I'll stick with my £12.50/month 20GB SIM only with Tesco. I really hope that the £70/month is paying for something worthwhile.
Yes this is what I thought complete rubbish! it's just greed but nothing I can do about that, I would not have an issue with it if it was not for how they treated me, as if they don't care they know I can't do anything.
I was on a sim only deal myself and was happy but my was not in a good condition ( cracks all over ) I thought I would treat myself and get a newer phone but the cash price for used phones was still high for most newer phones ( 1-2 years old) so I thought its better if I pay a little more and get the latest, a contact seamed like the best option consider I would still need to pay for a plan anyway and I'm not paying all in one go and the free gifts.
I'll be going back to sim only after.
Less mandatory, more allowed to charge so why miss the opportunity to make money.
Suppose this is one more advantage of getting the phone interest free with a SIM only plan as you avoid these RPI increases. Certainly can add up if you have a £70 monthly contract and take it out right before the increase.
Yes this was the main reason I was annoyed, I was not informed and the way they dealt with me when I asked.
I read this thread yesterday and my immediate thought was 4.5% seems excessive - I don’t recall any previous increase in my mobile tariffs being that high, it was usually around 1%. My other thought was I’m sure you were informed in the T&C’s.
I just got en email from Vodafone this morning regarding the April increase and they state a 1.4% increase in line with the Retail Price Index (RPI) - is that the same as CPI?
I always assumed anything above the index, no matter how small, entitled you to leave penalty free?
I was not told when I placed the order, ive not had a phone contact for a few years so I never expected it either the only ones that would increase the price mid contact was virgin and they would always take another look when asked and when I found out I also thought 4.5% was a bit excessive, I wanted to leave or at least get them to take another look, I spoke to 6 people and they refused point-blank to do anything giving me different reasons and I can't leave unless I pay off the contact.
The government or Ofcom needs to stop these practices
When CPI was at 3%, the increases were set at CPI to allow the Telcos to 'keep up with rising costs' (even if their staff were made redundant, got low payrises, or overall investment was low). Now that CPI is 0.7%, somehow the regulator is allowing them to increase contracts by 4.5% and the only logical reasoning can be 'to increase their profits'.
The brown envelopes must never have been fatter.
EDIT - this is the reason I'll never go on contract again.
This was my issue and why I was annoyed the CPI is only 0.6%, I was never told when I was sold the contract when they already knew and they are already aware of the climate but they are still happy to take advantage
Always gets people when going into new contracts. Your wage packet doesn't rise every year does it so why should bills when you sign up to a contract stating it's XXX per month.
They are aware of the climate and how things are for most people so why are they taking advantage.
In the last few years everytime I've spoken to either broadband or mobile suppliers they have also read this term out when detailing the overall costs. The only thing I find shocking about this post is £70 a month? Ouch...
I thought the same when I first saw what prices are like now.
I needed a new phone and I was already paying for a sim only deal, I thought it would be better to get a contact so im not paying in one lump.