Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what steps they are taking to ensure that existing customers within the mobile, broadband and mortgage markets cease to pay more than new customers.

In December 2018 the independent Competition and Markets Authority (CMA) responded to a super-complaint by Citizens Advice on the “Loyalty Penalty”. Since then Government and Regulators have taken significant action to tackle the loyalty penalty.

The FCA has also conducted a Market Study in the mortgages market to better understand the problem in that sector. In mobile and broadband, Ofcom has delivered agreements in both markets to benefit consumers. Consumers now receive Annual Best Tariff Notifications alerting them to their contract terms and the best offers their provider has. All major mobile providers, with the exception of Three, will reduce consumers’ bills once their minimum contract period ends. Broadband consumers are benefitting from a range of voluntary measures agreed with major providers, and Ofcom is investigating whether there should be social tariffs in broadband.

The Government continues to support competitive markets that drive down prices and create better products and services for consumers. It is also committed to strong regulation, where necessary, to protect consumers and drive investment and fair competition by businesses, and looks forward to seeing the further outcomes of the ongoing work by Ofcom and the FCA.