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From 23 January 2014, consumers and small businesses who receive unexpected hikes to their monthly charges are now able to opt out of the contract without penalty.
However this only applies to NEW contracts taken out on or after this date and a small business is one that has fewer than 10 employees.
More detail can be found in OFCOM’s press release here:
Ofcom – Protection for consumers against unexpected mid-contract price rises
The key word though is “unexpected”. 02 immediately rewrote their terms to circumvent this by notifying new customers that their bill WILL increase in line with inflation – whereas previously their terms stated that they had the right to increase it by no more than the rate of inflation. O2 changes its T&Cs to circumvent new Ofcom rules designed to combat mid-contract price hikes