Stone calls for government action on 'unjust' price rises in broadband contracts

A CALL has been made for the UK Government to take action on "unjust" price rises in broadband contracts. Jamie Stone, the Caithness, Sutherland and easter Ross MP, wants greater transparency for customers who are facing rises of nearly 15 per cent on their mid-contract broadband charges.

He said: "Many communications providers use a formula of Consumer Prices Index (CPI) to include an annual contract price rise within their consumer contracts. This allows providers to increase prices mid-contract by and above the rate of inflation.

"Currently, the CPI rate is based on January’s figure, which is 10.5 per cent. Most large providers then add 3.9 per cent on top of this. As a consequence, broadband bills could go up by 14.4 per cent this year for many people in the UK. This is typically masked within the small print of broadband contracts – making it likely that consumers unaware of this formula will find themselves stuck in contracts that they can’t leave without paying a penalty."

The Liberal Democrat MP added: "At the moment there is not nearly enough awareness when it comes to mid-contract price rises. This means that people who are already struggling with increased costs of living will have a nasty surprise by yet another inflated bill.

"Broadband is not a luxury, it is an essential. From education to business, being connected is critical to modern life. This is why the government has a responsibility to ensure that no one – no matter where in the UK they live – is blindsided by the small print."

In his letter, Mr Stone asked what the government is doing to ensure equitable transparency within these agreements and said: "This lack of transparency is unjust because an increase adds an unfair financial burden for thousands of people who are already struggling to make ends meet. The government should not stand by and let obfuscated contracts further widen inequality gaps across the UK which are so often caused by a lack of connectivity.

"I further stress the burden of this issue on my constituents in Caithness, Sutherland and Easter Ross. The Highlands have been repeatedly ignored and overlooked by initiatives that intend to increase and strengthen broadband connectivity nationally. The last thing my constituents need is inequity in affordability."

I am urging the Government to ensure that mid-contract broadband price rises are just and transparent, in order to prevent the cost of living from becoming an even heavier burden."

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