Money Alert: Sneak price rises on fixed mobile contracts

Mobile phone firms have been told they can no longer hit customers with sneak price rises on fixed fee contracts. Phone regulator Ofcom this week ruled that anyone faced with unexpected increases in monthly bills will be able to cancel their contract without penalty.

The new rule applies to all the mobile giants, such as Vodafone, EE, O2 and Three. It will also apply to any increases in monthly charges on fixed price contracts sold for broadband internet services and landline phones.

Dominic Baliszewski, of Broadband Choices said: "Price rises may be a unavoidable fact of life, but when a customer gives up their freedom to switch by signing up to a contract at a set monthly price, that is the price they should continue to pay until the end of the contract term. Moving the financial goal posts is unfair on customers."