Martin Lewis warns 'Sky isn't telling you this' in urgent message to customers

Martin Lewis, the founder of , has warned customers of all broadband firms that they could face higher price rises than before due to a change in the law. On his Podcast, he revealed that ' isn't telling you this', but it now allows customers to leave its contracts mid-contract when prices increase following the law change - and customers of other firms could end up paying even more under the new rules.

In January, telecoms regulator introduced new rules on mobile and broadband contracts which prohibited mid-contract price rises based on inflation, and instead required companies to provide customers with a figure in pounds and pence upfront, outlining how much your price will rise during the contract.

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However, Sky has chosen not to adhere to this rule and has maintained a percentage-based system, meaning customers can leave with 30 days' notice if the price increases mid-contract. But even those who are on the new pounds and pence system might end up paying more than before, Martin warned.

On his April 2 podcast via Sounds and Spotify, Martin Lewis said: "We have had a change in the regulations on this. Most people are seeing price hikes of around five to seven per cent this year.

"But, new rules have come in that say on new mobile and broadband contracts, they cannot do mid-contract price hikes. They have to tell you how much the price will rise before you start your contract.

"The only exception is if they choose not to do that and choose to do a mid-contract price hike, that you're allowed to leave within 30 days of the notification of that, penalty-free, which is the one Sky is choosing to do.

"Sky isn't telling you this but Sky is letting you - and it actually gets some competitive advantage because therefore its headline prices are cheaper on price comparison websites by doing that which I think might distort the market and they might need to look at it."

Martin commented: "My problem is, they're still allowed to increase the price mid-contract, they're still allowed to increase it above inflation, they just can't link it to inflation.

"And what we're perversely seeing is, these pounds and pence rises are more transparent but for many people, especially those on relatively cheap deals, they're bigger than the old inflationary price hikes.

"If you're on £20 a month and your rise is £3 that's 15%, whereas on the old inflation system you would have been on 5 or 7%. I submitted to the government that there should be a moratorium on prices rising above inflation during the contract."

He added in frustration: "I mean it's a contract. A fair contract would be that you can put it up by inflation. But that's not what they've chosen to do. I'm not in charge."

It came after a letter from Sky's Chief Operating Officer Devesh Raj, issued in January, stated: "This April, we will be introducing some changes to prices of Sky's TV and broadband products.

"I wanted to take this opportunity to explain to our customers why this decision is necessary and why we're always committed to offering you excellent value.

"At Sky, everything we do is focused on bringing people the joy of a better experience. Whether it's award-winning content, world-class sports coverage, or reliable broadband, we strive to provide an offering that sets us apart. I'm proud to say we've invested heavily over the last 12 months, so our customers now have access to more than ever before.

"This continued investment to deliver the best and most reliable products, along with increased supplier costs, means most of our TV and broadband customers will see a change in their price this year. But we've made every effort to minimise the financial impact to you.

"From April, our TV and broadband packages will increase by an average of 6.2%, which is either in line with or lower than other providers. Over the last four years, our prices have broadly increased in line with inflation, reflecting our ongoing commitment to fair and transparent pricing.

"I'm pleased to confirm that the cost of our broadband and mobile social tariff will be frozen once again, protecting our most vulnerable customers and ensuring they continue to have access to essential services.

"We will be reaching out to every customer impacted in the coming weeks, to provide clarity about how their products and services will be affected."

The company explained: "These price adjustments are reflected in the investments we've made to improve our products and services and the heightened pressures businesses across our industry continue to face.

"For example, the amount we pay wholesalers for our broadband infrastructure or the investments we need to make in to deliver product reliability and improvements for our customers."

Should the price increase, customers have the option to cancel their contract with Sky within 30 days and switch to another provider, even if they are still within their contract period, reports .

However, this provision specifically applies to broadband prices and does not cover TV packages, with the exception of the Essential TV package which will not see a price rise.