Although Ofcom banned providers from including inflation-linked price increases in their new contracts from 17 January 2025, this rule generally only applies to new customers.
As a result, customers who signed contracts before specific dates will still face larger inflation-linked increases based on the old rules.
The Retail Price Index (RPI) measures the rate of inflation by assessing the average change from one year to the next in the prices of a representative sample of goods and services purchased by typical UK households.
Virgin Media is the main provider that links its price increases to the RPI. If you joined or took out a new contract with Virgin Media before 9 January 2025, the price you pay each month will increase by RPI plus an additional 3.9%.
The RPI rate used is the January RPI rate, which was today announced to be 3.6%. This means Virgin Media customers will see prices rise by 7.5%.
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Ernest Doku, telecoms expert at Uswitch.com, said: “Virgin Media broadband customers paying the average broadband cost of £355 per year will see their bills rise by £26. This inflation-linked increase only applies to Virgin Media customers who took out their contract before 9 January 2025.
“Virgin Media customers who took out a contract after 9 January will be subject to a ‘pounds and pence’ price rise following Ofcom’s ban on inflation-linked mid-contract price increases in January. This will be £3.50 per month for broadband customers, making these the steepest of providers’ mid-contract price rises this cycle.
“If you’re one of the estimated two million Virgin Media customers who are out of contract or coming to the end of your existing deal, you don’t need to put up with price rises.
“The launch of One Touch Switch means it’s never been easier for broadband customers to vote with their feet and switch providers. Smaller, regional broadband providers like Hyperoptic and Trooli don’t raise their prices mid-contract and customers can save on average £181 a year by switching providers.”
A Virgin Media spokesperson said: “We announced in November that we’re changing how we communicate and implement price increases for new and re-contracting customers. Instead of percentage-based price changes linked to inflation, contracts will specify an annual price increase in pounds and pence, giving customers greater certainty about how their bills may change over the course of their contract.
“As per the terms and conditions they agreed to when signing up, and in line with Ofcom’s new rules, some existing Virgin Media customers on older contracts will receive an inflation-linked price increase in April equivalent to RPI+3.9%.
“We know that price changes are never welcome, but with broadband usage on our network up by nearly 10% last year, we continue to provide excellent value for connectivity that our customers are relying on more than ever before. We also continue to support customers who need it most – for example through exempting social tariff and Talk Protected landline customers from any price changes.”
