What unlimited legally means in UK broadband
In the UK broadband market, unlimited legally means there is no monthly data cap. You will not hit a ceiling of 100GB or 500GB and then face throttled speeds or overage charges. The Advertising Standards Authority has clear guidelines about how unlimited can be used in broadband advertising, and in practice the vast majority of residential fibre broadband products in the UK are genuinely unlimited in this sense.
Fair use policies: the nuance
Most unlimited broadband products include a fair use policy somewhere in the terms and conditions. These do not set a data cap but allow providers to manage network traffic during periods of congestion by temporarily reducing speeds for extreme users. In practice, for the overwhelming majority of households, fair use policies are never encountered.
Where data limits are still relevant: mobile and 5G broadband
While fixed-line home fibre broadband is almost universally unlimited, mobile broadband products including 4G and 5G home broadband more commonly come with data caps. If you are considering a 5G home broadband or mobile data product, check the data terms specifically.
Traffic management at peak times
Separate from data caps, some providers reduce speeds during peak hours as a network management measure. This is not the same as a data cap. You are experiencing congestion-related speed management rather than being penalised for using too much data.