UK broadband prices drop, further Ofcom regulations delayed

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According to Ofcom’s annual Pricing and Consumer Engagement Report 2026, average broadband prices have fallen by 6% over the past year.

The drop comes amid intensifying competition and a surge in “altnets”—alternative fibre providers—challenging the dominance of major players including BT and Virgin Media.

The report highlights that the savings available to those willing to shop around are substantial. On average, UK households can save £183.60 per year simply by switching to a new provider once their initial contract ends.

This “loyalty penalty” continues to be a focus for the regulator, which is urging consumers to take advantage of the ultra-fast speeds and lower monthly costs offered by smaller, independent networks.

Regulations delayed

While the price drop is a win for consumers, the report also revealed a timeline that has frustrated consumer advocates. Ofcom announced it will not review its current “pounds and pence” price rise regulation until 2027.

Under existing rules, providers must state mid-contract price increases in clear monetary terms (e.g., £3.00 per month), rather than as a percentage linked to inflation.

However, critics argue this hasn’t gone far enough to protect bill payers. Alex Tofts, a broadband expert at Broadband Genie, expressed significant concern over the delay in further reform.

“The UK has excellent competition when it comes to shopping for a new broadband deal,” Tofts noted. “If you use a trusted comparison service, look beyond the mainstream providers. Alternative networks such as BeFibre, Lit Fibre, and YouFibre typically offer faster download speeds at a lower monthly price, and they won’t increase prices mid-contract.”

However, Tofts was blunt regarding the regulator’s timeline:

“We’re disappointed we’ll have to wait until 2027 for any changes to mid-contract price rises. Ofcom needs to wake up. Our analysis shows that bill payers are paying far beyond the rate of inflation due to the new regulations. These mid-contract price rises only create confusion and add further pressure to household budgets. The obvious solution is to ban them outright to protect customers.”

While the 6% overall price drop is a positive step, the debate over the fairness of mid-contract hikes is likely to remain a central issue for millions of households until the 2027 review.

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