The Hard Shoulder New rules to allow customers to cancel contracts if prices go up
Nov 25, 2025
Conor Pope, Consumer Affairs Correspondent for the Irish Times, dives into the upcoming government rules allowing customers to cancel contracts without penalties if prices increase. He highlights how companies often pre-announce price hikes, locking consumers in, and explains the common contract clauses that fuel frustration. Conor also discusses the potential for firms to raise base prices as a workaround, the impact on utilities and insurance, and the broader implications for consumer rights. It's a crucial conversation for anyone dealing with rising costs.
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Right To Exit On Price Hikes Restored
- The government will restore consumers' right to exit contracts when prices rise, undoing a recent practice of pre‑baking increases.
- This change treats in‑contract price hikes as material changes regardless of prior notice in terms and conditions.
Pre‑Baked Increases Locked Consumers In
- Companies had been inserting automatic annual increases (e.g., 3% plus CPI) into contracts to avoid triggering exit rights.
- That practice meant consumers could be hit with multiple rises during a two‑year plan while remaining unable to switch providers.
Small Raises Add Up During Contracts
- Typical contracts could impose at least two increases over 24 months, turning small monthly rises into meaningful extra yearly costs.
- Conor Pope framed these as aggravating 'death by a thousand cuts' during the cost-of-living crisis.