Hosted.co.uk Contract Problems: The Lock-In Explained

Why Your VoIP Contract Feels Like a Trap

If you have landed on this page, there is a good chance your Hosted.co.uk bill has recently gone up, you have discovered your contract is longer than you thought, or the "all-in" price you were quoted is no longer all-in. You are not the first, and you will not be the last.

We are Compare The Networks, an independent, OFCOM-regulated business telecoms comparison service. We have been helping UK businesses compare VoIP, mobile and broadband deals since 2008. This article breaks down the contract problems that show up most often in Hosted.co.uk 1-star Trustpilot reviews, what the contracts typically contain, and what your options are if you are feeling trapped.

The Four Big Contract Problems

According to 1-star reviews on uk.trustpilot.com/review/hosted.co.uk, the contract problems customers raise most often are:

Contract term longer than expected (told 12 months, signed 60)
Monthly price higher than quoted once extras appear on the bill
Annual price increases hitting harder than anticipated
Early termination fees that make leaving expensive

Let us take them one at a time.

Problem 1: Contract Term

The headline complaint. 1-star Trustpilot reviewers describe being told 12 months on the sales call and signing 60 months in the DocuSign.

We have a full article on this: Hosted.co.uk 60-month contracts. Quick summary:

Business VoIP contracts in the UK are typically 24 months minimum
Longer terms (36, 48, 60 months) exist, usually linked to bundled equipment or significant upfront discounts
The issue raised on Trustpilot is not that 60-month contracts exist — it is that reviewers say the term was not clearly disclosed before DocuSign

What to do now: dig out your contract and check the term. If it is longer than you believed, read our misselling guide.

Problem 2: The Monthly Price

The second most common complaint. The monthly figure quoted at sales is not the monthly figure on the bill.

Typical extras that Trustpilot reviewers say appeared after signing:

Line rental or number rental fees
Handset rental or lease charges
"Support" or "maintenance" tiers
Connection / porting fees on the first bill
Add-ons described as "included" that turned out to be chargeable
"Disaster recovery" or "resilience" packages

Our price misrepresentation article covers this in detail.

Why this happens

Phone-based sales calls focus on a single headline figure. Extras are usually in the terms and conditions or the quote document, but if the focus on the call is the headline monthly number, the extras can slip past.

What to do now

Look at your first bill versus the quote. Highlight every line that was not on the quote. That list is your evidence if you decide to dispute.

Problem 3: Annual Price Increases

Most UK business VoIP contracts include an annual price increase. From January 2025, OFCOM banned percentage-based (CPI/RPI-linked) increases for consumer contracts, forcing providers to state rises in pounds and pence. Many business providers have followed suit.

Typical annual increases you will see in 2026:

A fixed pounds-and-pence rise per line per month is now the industry standard
Sometimes higher if the contract predates the OFCOM change
Some older contracts still contain percentage-based rises

Over a 60-month term, a fixed annual rise on 5 lines compounds into thousands extra on top of the headline contract value.

What Trustpilot reviewers say

Some 1-star reviewers describe being surprised by the size of annual rises, or by the increase being applied at a different rate or on a different date than expected. Some describe the rise not being clearly disclosed at the point of sale.

What to check

How much is the annual increase? Get it in pounds and pence.
Is it per line, per bundle, or across the whole account?
When does it apply (usually April)?

Problem 4: Early Termination Fees

If you try to leave a business VoIP contract early, you pay. The standard formula is:

Remaining contract value + any equipment balance + admin / disconnection fees

On a 60-month contract, leaving after year 1 means paying the sum of your remaining monthly charges over the rest of the term, plus any equipment balance and admin or disconnection fees. On a five-year deal that can be a substantial commitment.

That is a significant cheque to write. For the full breakdown of how ETFs work and when you might challenge them, see our early termination fee article.

Other Contract Issues from Trustpilot Reviews

Beyond the big four, 1-star Trustpilot reviews cite a range of other contract-related issues:

Unauthorised Service Changes

Phone numbers changed without clear authorisation. Services added or altered without the customer's knowledge.

Basic Features Not Working

Features described as included — Caller ID, for example — reportedly not working despite being part of the package.

Minimal Service Credits for Outages

One reviewer described being offered a small service credit after an outage they say cost their business a far larger sum. The contract terms typically limit compensation to fixed service-credit amounts regardless of real business impact.

Billing During Gaps

Reports of being charged during periods when neither the old provider nor Hosted.co.uk was delivering a working service. See our billing disputes article.

Exit-Fee Coverage Promises

Some Trustpilot reviewers describe sales promises to cover exit fees from their previous provider that were reportedly reduced or unpaid after switching. Promises that are not written into the contract are usually not enforceable.

Why 60-Month Contracts Catch Businesses Out

Let us talk about why this model works for providers and against customers.

The Headline is Always a Monthly Figure

Business owners process a monthly figure differently from the full multi-year commitment it adds up to. The same deal, framed two ways. Sales calls focus on the first framing.

DocuSign Speeds Up Signing

DocuSign is legitimate and widely used. The risk with any e-signature tool is that contracts get signed in seconds rather than studied for hours.

Business Contracts Have No Cooling-Off

Once signed, you cannot change your mind. If you only spot the term after the bill arrives, you are already committed.

Extras Are in the T&Cs

Terms and conditions are typically referenced in the contract but not on the cover page. If you do not open and read them before signing, you are bound by them anyway.

What a Good Contract Looks Like

For contrast, here is what a reasonable business VoIP contract should contain, and what Compare The Networks puts in writing:

Term: 24 months minimum, stated clearly on page 1
Monthly cost: itemised per line, per handset, per feature
Annual increase: a fixed amount per line, stated in pounds and pence, each April — fixed, not percentage-based
Equipment: handset options and one-off fees listed
Support: UK-based, clearly described with SLAs
Early termination: formula clearly stated
Service credits: defined in the contract for specific outage scenarios

If you are evaluating any business VoIP provider, ask for all of this in writing before you sign.

What To Do If You Are Locked In

Your options depend on your situation.

If You Are Within the Cooling-Off Period

Business contracts usually have none. Check your paperwork carefully. See our no cooling-off period article.

If You Believe You Were Mis-Sold

Raise a formal written complaint. Wait 8 weeks or a deadlock letter. Escalate to CISAS. Keep everything in writing. See our misselling guide and complaints guide.

If You Are Mid-Contract and the Contract Was Signed Legitimately

Your realistic options are:

Stay and plan your exit at end of term
Pay the early termination fee and switch now
Try to negotiate a reduced exit with Hosted.co.uk (in writing)

See our leave Hosted.co.uk guide for the process.

If You Want to Know What the Alternative Looks Like

Get a free quote — we will compare what business VoIP should actually cost.

How to Avoid This With Any Provider

Always confirm the contract term in writing before signing. Ask the salesperson to email you the full term and monthly cost.
Read the full quote document. Every line. If you do not understand a line, ask.
Ask about the annual price increase in pounds and pence.
Ask about every extra fee — line rental, porting, handsets, support.
Sleep on it. No legitimate provider should need a DocuSign signed on the same call.
Read 1-star Trustpilot reviews of the provider before signing.
Compare at least three providers. Use an independent comparison service.

Frequently Asked Questions

Why is my Hosted.co.uk bill higher than the monthly quote?

Common reasons cited in 1-star Trustpilot reviews include: line or number rental added as a separate charge, handset rental, "included" features that appeared as chargeable, connection or porting fees on the first bill, or the annual price increase being applied.

Are 60-month VoIP contracts normal?

No — 24 months is the UK industry norm for hosted VoIP. Longer terms typically exist where equipment is subsidised or there is a significant upfront discount. If a 60-month term is being offered, ask why and get the answer in writing.

Can I negotiate out of a Hosted.co.uk contract early?

You can ask. The provider is under no obligation to agree. If you believe you were mis-sold, follow the formal complaints path and potentially CISAS. Always get any negotiated resolution in writing.

How much does it cost to leave Hosted.co.uk early?

Typically the remaining contract value plus any equipment balance and admin fees. On a contract with many months still to run, that can add up to a substantial sum. See our early termination fee article.

What is a reasonable annual price increase for business VoIP?

A fixed pounds-and-pence rise per line per month is the current UK industry norm. Any provider that cannot state the increase in pounds and pence should be pressed for clarity.

Find Out What VoIP Should Actually Cost

Get a free quote and we will compare business VoIP for your business. Clear pricing, 24-month terms, no small-print traps.

Or read more:

Nearly 20 years helping UK businesses. Over 1,000 verified reviews on Trustpilot. OFCOM-regulated. Free.

Get your free comparison now.

About this article. Claims reported here are attributed to public reviews on Trustpilot and similar platforms. They represent the opinions of the reviewers cited, not statements of fact by Compare The Networks. Brands named may dispute these claims. If you are a brand representative who believes any content requires correction, please contact us.

Hosted.co.uk Contract Problems: Hidden Terms, Price Jumps & Lock-In (2026)