Martin Lewis has issued a key update on phone and broadband bill rises that happen mid-contract, following new Ofcom rules.

From January 17 2025, phone and broadband companies have to show any price rises "prominently and transparently" – so in pounds and pence, clearly shown – before you take out a new contract.

This means that the previous deal of linking existing contracts to future rates of inflation, often with an extra percentage on top, will be banned.

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But, it will mean that for some customers, particularly those paying lower prices, the percentages their bills rise by may be higher.

As Money Saving Expert founder Martin Lewis explains: "If you're increasing everybody's contract by say £3.50, people on contracts paying £20 a month are paying a massive 16 or 17% increase, someone who is paying £40 is seeing 8 or 9 per cent."

If companies choose not to show this information, customers are free to end their contract within 30 days. 

The new rules don't apply to existing contract terms – so millions of customers on older contracts will still face inflation-linked rises.

Martin used the update to remind viewers that 40 million people are out of their contract period, and so free to choose a new deal or renegotiate their current one.

How to check if you're out of contract

Your bill or account details will be able to tell you for broadband, or you can contact customer services. For mobile customers, there's an even quicker way to check.

Text ‘INFO’ for free to 85075. If you’re on Three, or ID Mobile, or SMARTY, you will need to confirm this by entering your date of birth once they’ve messaged you. Then you'll be sent a message with your details.

If your contract has ended, you're free to move and take advantage of a better deal.