Under new rules unveiled by Ofcom broadband, TV, Mobile and home phone companies will have to tell their customers when their contract is coming to an end. They will also have to inform them of the best deals available.
The regulator said the move will provide fairness for customers, and up to 20m customers will benefit by switching provider or be able to agree a new deal with their existing provider.
According to Ofcom customers who bundle their landline and broadband services together pay an average of 20% more when they are out of contract.
Customers who bundle their pay TV services pay and average of 26% more.
Lindsey Fussell, Ofcom’s consumer group director said, “We’re making sure customers are treated fairly, by making companies give them the information they need, when they need it.
“This will put power in the hands of millions of people who’re paying more than necessary when they’re no longer tied to a contract.”