Tesco Mobile and debt charity Money Advice Plus have urged telecoms providers to reverse planned price increases after new research raised serious concerns.
Over the coming weeks many UK mobile and broadband operators are expected to introduce some of the largest mid-contract price rises seen in recent years.
Karen Perrier, CEO of Money Advice Plus, commented:
“Household debt is increasing daily. Calls to our national services have risen by 20% in recent months, and far too many people are struggling to afford essentials such as food, heating, or even their phone bills.
It feels especially wrong for companies to profit from price increases at a time like this. Even a few pounds taken from a household budget can have a devastating effect.”
YouGov research shows that unexpected mid-contract price increases will affect millions of households already under financial strain.
More than one in three people (38%) say that even a small rise in their bills would make them worry about their finances, and one in eight (14%) fear disconnection.
Good connectivity has been a vital lifeline over the past year, so it is unsurprising that many people fear losing access or falling into deeper financial difficulty.
“Phones and broadband have been essential during the pandemic — keeping people connected during lockdown, enabling home-schooling, helping people collect benefits and access support.
We must ensure people can afford to stay connected. We encourage networks to reconsider the impact of these increases and to improve contract transparency. Many consumers don’t realise their costs can rise mid-contract and that they have limited options.”
It is important to note that consumers do have protections. Rules introduced by telecoms regulator Ofcom require providers to give 30 days’ notice of any price increases and give customers the right to cancel their contract without penalty if prices rise mid-contract.
Tesco Mobile is among the few providers that have not raised prices mid-contract and is calling on other networks to reverse planned increases to protect households already struggling financially.
Tom Denyard, CEO of Tesco Mobile, said:
“Beyond being misleading, our research shows mid-contract price rises will financially impact people who have already been hit hard.
There could not be a worse time to introduce significant price hikes. For a family with multiple mobile users, higher costs can mean fewer items in the weekly shopping basket or extra pressure to cover an unexpected bill.
Telecoms play an essential role in people’s lives. At one of the most uncertain financial periods in living memory, and during continued social isolation for many, this is not the time to make connectivity harder to afford. We are urging other networks to reverse their planned increases.”
Many more people are facing financial hardship than before. If you are worried about debt, consider contacting a debt advice service such as Money Advice Plus, National Debtline, or StepChange for free guidance and support.
“As an organisation, we have existed for 150 years and we have never known a worse situation — with the potential for more hardship ahead. That means everyone must play their part to ease pressure on the most vulnerable,” adds Perrier.
(Image Credit: rupixen.com on Unsplash)
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