Martin Lewis’ warning to Virgin Media customers | European Markets

Cash saving knowledgeable Martin Lewis has sounded the alarm over a change to the best way Virgin Media, in addition to different broadband companies, calculate their price rises for 2025.

Talking on the latest episode of The Martin Lewis Cash Present Dwell on ITV1 and ITVX, Martin defined how a change within the law on cellphone and broadband contracts has now been put into impact.

It signifies that mid-contract price rises based mostly on inflation figures are actually banned, and as an alternative clients signing up to new contracts or renewing their present contracts have to be instructed the price rises they face in kilos and pence.

However, Martin set out that for a lot of clients, their mid-contract price rises will really be a lot more than the will increase they confronted within the previous system.

Martin instructed his viewers: “Firms must now say in pounds and pence before you sign up how the price will rise over the contract.

“So Virgin Broadband for example is saying new contracts it’ll rise £3.50 per month in April this year and April next year.

“So if you’re paying £25 now, in April you’ll pay £28.50 and then the following April you’ll pay £32, but this is only for new contracts or re-contracting.”

Martin mentioned that should you have been already on a contract earlier than the principles modified, you’ll nonetheless be liable to pay the above inflation price rises.

He added that if a firm chooses to not invoke a kilos and pence increase, comparable to Sky which isn’t, if it does a price rise mid-contract, you’re allowed to depart penalty-free within 30 days.

However the issue is that ‘it can mean higher price rises’ for some clients, particularly these on cheaper contracts.

Martin added: “These are new rules from Ofcom, they do boost transparency. But. They can mean higher price rises for some.

“Now I in the consultation response said you should put a limit on it that it shouldn’t rise above inflation, they haven’t chosen to do that and we’ve seen the result.

“So look, think about it, a £3.50 increase if you’re paying £20 a month. That’s 17.5%.

“With inflation this year it would only have been 6% so it’s a lot more expensive.

“If you’re on a £60 a month contract, £3.50 is only 6%. So what it means many people on lower contracts and getting cheaper deals are going to see a rise of more than they would have done under the old system with this, and way above inflation.

“So yes it boosts transparency but it doesn’t mean that it’s going to be cheaper, and for some it’s going to be more expensive.”

Those that took out a Virgin Media contract earlier than January 9 pays an increase of RPI inflation plus 3.9%.

Virgin Media mentioned about its price rises: “We know that price changes are never welcome, but like many other businesses we’re seeing increased costs while investing to keep up with growing demand.

“If you joined or took out a new contract with Virgin Media before 9 January 2025, your price is adjusted based on the UK government’s Retail Price Index (RPI) rate of inflation.

“If you joined or took out a new contract with Virgin Media from 9 January 2025, your price will increase each April by £3.50.”