Can Virgin charge an early-termination fee?

QAt the beginning of January, Virgin told me it was putting up its prices in March. I don’t want to pay this increase and want to switch to a different provider, but I have nine months left on my contract for TV, broadband and landline phone. Virgin said I would have to pay a termination fee of around £240 if I cancelled, but I thought I could cancel without a charge if there’s a price rise. Am I right? Duncan Hillcroft

AIt depends whether the price rise is above the retail price index (RPI) rate of inflation. If so, then you have 30 days from being told about the increase to cancel without paying a fee. You can check the inflation rate on the Office for National Statistics’ website ( www.snipca.com/37268). For December 2020 the rate was 0.8 per cent. The January 2021 rate was released on 17 February (after we went to print).

Duncan’s new price is £34.50 a month, up from £32.50. It’s a 6.1 per cent increase, which means he can cancel without being hit by an early-termination fee. Ofcom’s rules ( www.snipca.com/37267), introduced in 2016, give providers 30 days to inform you of a price rise. If they don’t, you can leave without paying a fee.

Even if the rise isn’t above inflation, you can ask to cancel without a fee by arguing that the extra cost is beyond your financial means. This is clearly hard to measure, so it’s something you’ll have to agree with your provider. If you can’t reach a compromise, contact the relevant ombudsman to see if it can help or mediate ( www.ombudsmanservices.org or https://www.cedr.com/ consumer/cisas).