If you have a pay monthly mobile contract with O2, you may have noticed an increase in your monthly charge during your contract. Because of annual planned increases customers can see their bills go up in March or April, around the start of the new financial year.
O2 has confirmed that it is increasing its monthly charge for pay monthly mobile customers again from April 2025.
If you have been surprised by a change to your fee, or you expected the price you signed up at to be the price you pay throughout the contract, you’re in good company. The price rises are usually written into the contract signed at the start of the pay monthly agreement, but many customers aren’t actually aware of them.
The UK’s Advertising Standards Agency (ASA) and telecoms regulator Ofcom have updated their rules about mid-contract price rises. The ASA wants to make sure customers are aware of the price increases when they see new deals advertised. Ofcom’s focus is making sure customers know in advance how much their in-contract price hikes will be.
The new rules apply from January 2025 onwards. But if you’re on a contract that started before then, your terms and conditions might mean you see an unpredictable price increase based on inflation rates and percentages.
O2’s price increases for April 2025
In November 2024, Virgin Media O2 announced that O2 mobile customers would be seeing a £1.80 monthly increase on their plans, effective each April.
According to O2’s pay monthly mobile agreement in December 2024:
Customers who signed up or renewed on or after 25 March 2021 will see annual price rises linked to the Retail Price Index (RPI) from the previous February, plus 3.9%.
For example, February 2024’s RPI was 4.9%, so after adding 3.9%, the total increase in April 2024 was 8.8%.
For customers who signed up or renewed their contracts before 25 March 2021, the monthly rate is tied to RPI but does not include an extra 3.9%. So, the price could actually increase or decrease depending on the RPI movement.
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Why do mobile providers increase their monthly fees mid-contract?
Price increases mid-contract aren’t a new phenomenon. They have come into the spotlight recently as Ofcom’s new rules have changed what telecom companies, including mobile, broadband, and pay TV providers, are allowed to do.
From January 2025, mid-contract price increases must be set out in advance in pounds and pence. But in the past, these price hikes have been called CPI increases or RPI increases because they were based on the UK’s Consumer Price Index (CPI) or Retail Price Index (RPI). These rates both measure inflation and are maintained by the Office of National Statistics.
Firms increased customers’ prices by these rates and added on an extra percentage, typically 3.9%. This covered the rising costs of doing business and maintaining and improving their networks.
Annual increases usually happen in March or April of each year, which means they fall in the middle of some people’s contracts.
Do all mobile networks have mid-contract price rises?
No - there are networks that offer fixed price tariffs and some that promise to freeze rates for a set period. However, they are in the minority. Most major mobile and broadband companies write annual increases into their customer contracts.
For example, Sky Mobile, Lyca, Lebara and GiffGaff all have price freeze promises in place for 2025.
Which networks are increasing their monthly prices in 2025?
EE | Yes, except for customers in financially vulnerable circumstances. Monthly rates for mobile will go up by £1.50 for new and upgrading customers. |
GiffGaff | No mid-contract price rises on 18-month contracts taken out before the end of 2025 |
Lyca Mobile | No - Lyca has promised not to raise prices until at least 2026. |
O2 | Yes, either by £1.80 for new contracts or based on RPI + 3.9% for older ones. Check your contract for details. |
Sky Mobile | No mid-contract price rises |
Tesco Mobile | Yes, except for Clubcard Price deals. Increases for other plans depend on your monthly price and when you started your contract. |
Three | Yes - the price increase depends on when you started your contract and what your data allowance is. |
Vodafone | Yes - the amount depends on when you took the contract out. Contracts started from 2 July 2024 will pay an extra £1.80 per month from April. |
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Should I cancel my contract with O2?
If a mid-contract price increase has come as a surprise, you might be considering ending your contract to join a different network. Before you do, it’s a good idea to check your contract to see whether you will have an early termination charge to pay.
You should have no problem moving to a different provider if you're past the minimum contract period.
If you are unhappy with your current O2 deal, then you can easily switch your contract with Uswitch.
You can compare SIM only and pay monthly deals from a range of well-known providers to find the best deal for you.
Can I cancel without paying an early termination charge?
If you’re past the minimum term of your contract, you can leave fee-free.
You can also leave it fee-free if you weren’t told upfront that your price might go up during the contract. In that case, you have the right to leave without an exit fee. Your network should also give you a month’s notice before making the changes. These rights are based on Ofcom rules that say you can leave without penalty if you experience ‘material detriment’ because of an unexpected change.
If you’re still inside your minimum contract period and your contract wording explains the price increases, you may have to pay the exit fee before you can leave. Alternatively, you’d have to show that the price increases weren’t clearly communicated.
If you’re unhappy with your contract because of price increases, it’s worth getting in touch with O2. You may be able to reach an agreement or change your plan.
How to get in touch with O2
From your O2 mobile: 202 (calls are free)
From a landline: 0344 809 020 (standard UK rate)
From overseas: +44 7860 980 202 (free from an O2 pay monthly mobile, charges vary from other phones)
Lines are open from 8am-9pm Monday-Friday, 8am-8pm on Saturdays and 8am-6pm on Sundays. O2’s Retention Team, which works with customers who want to leave, is available at slightly different times. Check the O2 website for details
If you’re having trouble paying your bill, O2 offers a few different support options. Have a look at their payment support page.
Ofcom’s 2025 rules on mid-contract price hikes
From 17 January 2025, inflation-linked or percentage-based price rises to mobile phone monthly charges are banned in the UK.
Regulator Ofcom ruled that any mid-contract price increases need to be set out ‘clearly and comprehensively’ in pounds and pence at the point of sale. Customers must also be told when the price increases will happen.
Ofcom says that the new rules, which also apply to telecoms and pay TV, will give customers more clarity and certainty about the price they pay. It will help people choose the best deals for their needs.
There are also new rules from the ASA on how companies communicate price rises to new customers. They say information in adverts about in-contract price rises should be equally as prominent as the initial monthly price. These rules also come into force on 17 January 2025.
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