Back in October, UK regulator Ofcom said that consumers and small businesses should be able to cancel their mobile, broadband or landline contracts without being penalized, if the provider increases the cost of their subscription.

The new guidance comes into effect from tomorrow (January 23), and follows a review into the fairness of contract price terms which found that many consumers had been caught-out by price hikes, when they believed their contract meant fixed prices. Now, providers are still allowed to raise prices if they wish, but conversely end-users must be given one month’s notice and are now officially within their rights to tear up their agreement and start looking elsewhere.

Ofcom had previously stated that new legislation wasn’t required, as it all comes down to how existing telecoms rules are interpreted. And this is what the regulator was stepping in to clarify – Ofcom says it will “monitor providers’ application of the guidance and complaints”. Meanwhile, you can read the amended guidelines here.

Protection for consumers against unexpected mid-contract price rises | Ofcom