Four of the largest mobile phone networks have agreed to put a cap on what customers will be charged if their phone is stolen in the future.
EE, Three, Virgin Media and Vodafone have all agreed with the government to impose a maximum limit on chat customers would be expected to pay.
The deal is expected to help protect customers from “sky-high bills” if their phone is stolen.
It is thought that the cap will be set at a similar level to the £50 cap on stolen credit and debit cards. The cap will be introduced from spring 2014.
The four firms have also agreed to tell customers of mid-contract price rises. They will also offer customers the opportunity to break off the contract without penalty.
While it has not been clarified, it is expected that customers will still need to pay off the remainder of the cost of their phone if it was subsidised through the contract.
Announcing the deal, Culture Secretary Maria Miller said the deal would avoid “shock bills”. “Families can be left struggling if carefully planned budgets are blown away by unexpected bills from a stolen mobile or a mid-contract price rise. This agreement with the telecoms companies will deliver real benefits to consumers and help ensure people are not hit with shock bills.”
Consumer affairs minister Jo Swinson said “The last thing you need after the hassle of a stolen mobile is to find that someone has used it and landed you with a sky-high bill too. “Phone companies have listened to government and to their customers and I welcome their agreement to protect them from unexpected costs.”