What is the new broadband price cap?
The new broadband price cap limits what Openreach can charge internet providers for the entry level connection that sits underneath most budget broadband deals. From 1 April 2026, that cap covers speeds up to 80Mbps, up from the old 40Mbps ceiling, under Ofcom’s Telecoms Access Review 2026 to 2031.
Worth saying up front: it’s not a cap on what you pay. It’s a cap on what Openreach can charge the provider whose name is on your bill. The point is to stop the wholesale cost of basic broadband creeping up faster than inflation over the next five years.
Why has Ofcom widened the broadband price cap now?
Because 40Mbps stopped looking like “entry level” a while ago. Streaming, video calls and a household with a couple of people working from home chew through more data than most homes needed a decade back, so Ofcom moved its regulated “anchor” product up to 80Mbps download and 20Mbps upload.
Ofcom published its final Telecoms Access Review on 17 March 2026, and the new rules took effect on 1 April 2026, running through to March 2031. Under the review, the price of that entry level product is now tied to inflation, so Openreach can’t raise its wholesale price for it by more than the rate of inflation each year (source: Ofcom, checked August 2026).
Does the broadband price cap protect your bill directly?
Not quite. The broadband price cap sits at the wholesale level, between Openreach and whichever provider’s name is on your bill, whether that’s Sky, Vodafone, TalkTalk or a smaller altnet. Whether that saving reaches you is still down to your own provider.
What the cap does do is put a ceiling under one of the biggest costs behind budget broadband. Close to eight in ten UK homes can now get full fibre, and Ofcom wants the entry level tier to stay affordable while the rest of the rollout catches up. We covered a related wholesale decision when Ofcom blocked an Openreach discount aimed at new customers, on similar competition grounds.
Broadband price cap at a glance
Figures checked August 2026, from Ofcom’s Telecoms Access Review 2026 to 2031.
| What changed | The detail |
|---|---|
| Old entry level speed covered | Up to 40Mbps download |
| New entry level speed covered | Up to 80Mbps download, 20Mbps upload |
| How the price is controlled | Wholesale price can’t rise faster than inflation each year |
| Who it directly applies to | Openreach, in its wholesale pricing to internet providers |
| Framework runs from | 1 April 2026 to March 2031 |
| Areas covered | Roughly 9 in 10 UK premises, where Ofcom judges competition is developing |
Key takeaways
- The broadband price cap now covers entry level speeds up to 80Mbps, not just 40Mbps.
- It limits what Openreach charges providers, not what providers charge you.
- Wholesale rises for that entry level product are limited to inflation, not a fixed fee.
- Your own provider still sets its retail price and can still raise it within its own contract terms.
- The rules run from April 2026 to March 2031, so this is a long term change, not a one off.
What this means if you’re on an entry level broadband deal
If your package sits around the 40 to 80Mbps mark, the broadband price cap should mean the wholesale ground underneath your deal stays comparatively stable for years to come. That matters most if you’re on a tighter budget, since entry level packages are exactly where households with the least room to absorb a big rise tend to sit.
It’s still worth watching your own bill separately, because this cap doesn’t touch retail contracts. If your provider is putting through its own increase mid contract, our guide to broadband mid contract price rises and your rights covers when you can walk away without a penalty. And if you’re already out of contract, that’s usually costing you more than the wholesale cap could ever save you, so our guide on stopping overpaying once you’re out of contract is worth a look too.
Households on low incomes or certain benefits often have another option worth checking alongside all this: social tariffs, which are usually cheaper than any standard entry level deal regardless of what the wholesale price cap does. Our guide on rights for vulnerable broadband customers sets out who qualifies and how to apply.
What to check on your own broadband bill
The broadband price cap is a market wide backstop, not a personal discount, so it’s not something you need to phone anyone about. What’s worth ten minutes of your time is checking whether your own deal is actually close to that wholesale rate, or whether you’re paying well above it for a connection in the same speed range.
A quick comparison at your postcode tells you that fast. If your current entry level package looks pricey next to what’s advertised elsewhere for similar speeds, that gap is one a five year regulatory framework isn’t going to close for you. Switching, or at least asking your provider to match a competitor’s offer, still does.
Frequently asked questions about the broadband price cap
- Does the broadband price cap lower my bill automatically?
- No. It caps what Openreach can charge your provider at wholesale level, not what your provider charges you, so nothing changes on your bill without your provider acting on it.
- What speed does the broadband price cap now cover?
- It covers Openreach’s entry level product at up to 80Mbps download and 20Mbps upload, widened from the previous 40Mbps limit.
- When did the new broadband price cap start?
- The new rules took effect on 1 April 2026 as part of Ofcom’s Telecoms Access Review, and they run until March 2031.
- Can Openreach still raise its wholesale prices at all?
- Yes, but only in line with inflation each year for that entry level product, rather than by whatever amount it chooses.
- Is a social tariff better than an entry level deal covered by the price cap?
- Often, yes, if you qualify. Social tariffs are typically priced well below standard entry level deals regardless of the wholesale cap, so it’s worth checking eligibility first.
None of this needs urgent action on your part. It’s a quiet, structural change that should keep the cheapest tier of broadband from creeping away from what it costs to provide, spread out over the next five years rather than landing as a single headline saving. If your own bill already looks out of step with that, a quick comparison is still the faster fix.
