Out-of-contract customers of telecom giants BT and EE will see their monthly bills increase by a flat fee of £4 from 1st March 2026, the companies have confirmed. This marks a significant shift from the previous practice of inflation-linked price increases for these customers.
New Ofcom Rules Prompt Change
The move follows new regulations introduced by the communications regulator, Ofcom, in 2025. These rules require mobile and broadband providers to be transparent about mid-contract price rises by stating them as a clear 'pounds and pence' figure at the start of a contract. Alternatively, firms must give customers 30 days' notice to leave without penalty if a price rise is introduced.
BT has stated it is now applying this new pricing structure to customers who are outside the minimum term of their contract. The company emphasised that these customers will not be entered into a new minimum term contract as a result of the change. Customers still within their contract minimum term will not be affected by this specific adjustment.
Disproportionate Impact on Lower Bills
While a flat fee may seem simpler, industry experts warn it could hit some households harder. Alex Tofts, a broadband specialist at comparison site Broadband Genie, commented on the change. "While the 'pounds and pence' flat fee may sound more straightforward, it has a disproportionate impact on customers with lower monthly bills," he said.
Tofts explained that for those on cheaper tariffs, a fixed £4 increase represents a larger percentage jump compared to the older inflation-based model. He strongly advised affected customers to use their out-of-contract status to shop around. "BT and EE customers won't be entering into a new contract, so we advise out-of-contract customers to review their options and look for a cheaper alternative," he stated.
Calls for Regulatory Review and Consumer Action
The expert also issued a stark criticism of the current market practices, calling for Ofcom to revisit its regulations. "Providers are taking advantage of consumers and failing to recognise the financial pressure many households are already under," Tofts argued. He advocated for a complete ban on mid-contract price hikes, pointing out that some smaller providers already offer fixed-price deals.
BT confirmed that it will be contacting affected customers in the coming weeks with specific details about their new pricing. The exact date the increase applies will be included in each customer's notification. For many, this news serves as a timely reminder to check their contract status and consider switching to a better deal in a highly competitive market.
