Virgin Media increasing prices mid contract. Is this breaking the contract?

benawhile

Hi 

My current "contract" with Virgin Media is set out like this:

Your monthly service charge £66.00*

Then £85.00* from Friday 14th February 2025

* Monthly price shown will increase each April from April 2024 by the Retail Price Index rate of inflation announced in February each year plus 3.9%.

It seems very dishonest to refer to it as a contract and then break it half way through, not to mention unfairly complicated for a customer to keep track of. Is this standard practice for the telecoms industry?

Ayr_Rage

Normal and what you agreed when entering into the contract with VM.

DullGreyGuy

benawhile said:

My current "contract" with Virgin Media is set out like this:

Your monthly service charge £66.00*

Then £85.00* from Friday 14th February 2025

* Monthly price shown will increase each April from April 2024 by the Retail Price Index rate of inflation announced in February each year plus 3.9%.

It seems very dishonest to refer to it as a contract and then break it half way through, not to mention unfairly complicated for a customer to keep track of. Is this standard practice for the telecoms industry?

Its not breaking the contract if thats what the contract states...

You have signed an indefinite contract with a minimum term, looks like you have a promotional rate initially and then revert to the standard rate. Like most indefinite contracts the standard rate will change over time and in this case its 3.9% above RPI. Were that not the case my birth mother would probably still be paying £4 3s 0d given she hasn't moved home or phone provider since the 70s.


The rules changed this year such anyone signing up for a new contract must be told in absolute terms what the annual increase will be during the minimum term rather than relying on an indexation however most fixed amounts look like they are going to be larger than the indexed rate would have been but obvs that depends on what happens with the indexes. 

FreeBear

DullGreyGuy said: The rules changed this year such anyone signing up for a new contract must be told in absolute terms what the annual increase will be during the minimum term rather than relying on an indexation however most fixed amounts look like they are going to be larger than the indexed rate would have been but obvs that depends on what happens with the indexes. 

I renegotiated a new 18 month contract with VM early March. Told them I would not accept any increase this coming April. So have it in writing that the first hike will be £3.50 in April 2026. Then a big jump in September 2026, so will no doubt go through the cancellation process & renegotiate dance again.

benawhile

DullGreyGuy I re-read your letter in the light of FreeBear's recent reply. Much as it's helpful this sentence isn't quite right: 

"looks like you have a promotional rate initially and then revert to the standard rate. Like most indefinite contracts the standard rate will change over time"

I'm talking about the standard rate changing during the minimum time.

I'm interested in the rule change you mention and when they came into effect. I wonder why they were changed and if Virgin broke those rules.

Bigphil1474

If you are talking about the 18 month contract period, that is usually the promotional period. They can increase the price during that promotional period, as it's in their Ts&Cs.

The rule change is that instead of them applying an extra amount based on some % above inflation in April, they have to tell you when you sign the contract when and what the amount of any increase will be in £ and pence. My contract predates the rule change so mine has gone up by about 7% this month, but when I renew in September, they will tell me what it will go up by in April 2026 - unless I can negotiate that away. 

The changes came into effect in January this year.

iniltous

If the increase is stated in the contract document, how can applying the increase in line with what the contract says , be breaking the contract ….Ofcom outlawed increases that don’t state the monetary increase ( in ££ and pence ) so it’s fine to say £30 , goes up to £33 in March next year and £36 the March after that , but it’s not okay to say price increases by inflation +3.9%.