Ofcom has fined Virgin Media £28 million after an investigation revealed the telecoms giant deliberately made it difficult for customers to cancel their contracts. The regulator said the company's call centre staff were instructed to use tactics such as putting customers on hold for extended periods and dropping calls without reason, in a bid to prevent them from switching providers.
The fine, one of the largest ever imposed by Ofcom for consumer protection breaches, comes as millions of UK households grapple with rising broadband and TV bills. According to MoneySavingExpert, typical broadband costs have increased by around 14% over the past year, adding pressure on family budgets already strained by higher energy bills and food prices. The average dual-fuel energy bill now stands at approximately £1,750 per year, while food inflation remains above 5%.
Virgin Media's behaviour is particularly concerning given that many customers were trying to leave because they could no longer afford the service. Citizens Advice reports that complaints about broadband cancellation difficulties have surged by 30% in the past 12 months, with many customers facing hours on the phone. The charity advises anyone struggling with contracts to keep detailed notes of call times and ask for a 'deadlock letter' if they cannot resolve the issue directly.
Under Ofcom rules, providers must make it 'quick, easy and free' to leave at the end of a contract. The regulator found that Virgin Media's practices were 'deliberate and systemic', with staff performance metrics that rewarded keeping customers on the line rather than processing cancellations. Virgin Media has said it is 'disappointed' with the fine and is considering an appeal.
For households looking to reduce costs, MoneySavingExpert recommends checking if you are out of contract and comparing deals on comparison sites. The Warm Home Discount scheme can provide £150 off energy bills for eligible low-income households, while Universal Credit claimants may also access help with broadband costs through social tariffs. Citizens Advice offers free guidance on disputing bills and switching providers without penalty.