If you’re a pay monthly mobile customer with Tesco Mobile, you may be wondering if your monthly fees will go up in 2025.
Like many other mobile, broadband, and pay TV providers, Tesco has been annually raising the monthly cost of its mobile contracts around the end of each financial year. These scheduled increases are a way for companies to keep pace with inflation and make sure they cover the cost of doing business.
For some customers, the price increases come as a surprise. They expect the monthly price they signed up for to stay the same throughout the contract. Having your mobile bill increase unexpectedly during the contract term can be stressful, and it can be difficult to predict how much you’ll pay if the increase depends on the rate of inflation.
Ofcom has ruled that companies need to make it clearer to customers how much they will pay each month during their contract and if those rates will change. The Advertising Standards Agency (ASA) has also set new rules. Customers should be aware at the point of sale what they’re going to pay each month, before and after any annual price rises.
Importantly, though, these changes don’t apply to contracts that were started before the rules came into force in January 2025. So, the kind of increase you get will depend on the age of your contract.
Tesco Mobile’s mid-contract price increases for April 2025
Tesco Mobile is one of a handful of mobile companies that has frozen at least some of its prices.
As long as you’re on one of its Clubcard deals, your monthly bills should stay the same. Tesco promises that prices are frozen for the length of the contract with its Clubcard plans.
However, the price freeze stops at the end of the Clubcard deal, so you’re subject to the same annual price hikes as non-Clubcard customers.
If you’re a Tesco Mobile customer not on a Clubcard deal, or your Clubcard deal has ended, the prices will rise every April.
Tesco has announced that for contracts from 17 December 2024, price increases will be communicated in pounds and pence at the point of sale. There isn’t a set rate of increase for all customers - instead, the amount will depend on what each customer is already spending.
For example, someone on a £14.99 monthly deal will see their monthly contract price increase by 90p in April. But someone on a £30 monthly deal would receive a £1.80 increase, suggesting the typical cost of a customer's contract will rise 6% from April 2025.
“These price increases will be relative to each customer’s basic monthly price, so will reflect their personal budget. This proportional model is a fairer way than taking a one-size-fits-all approach, where a customer on the lowest price would see their price increase by the same amount as a customer on the highest price,” Tesco said in a statement published in various news outlets.
For contracts dating from before the December pounds-and-pence prices, Tesco Mobile sets its price increases at the Consumer Price Index (CPI) plus 3.9%. This was confirmed at 2.5% in January 2025, meaning anyone who took out a contract before 17 December 2024 will receive a 6.4% price increase in April.
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Mid-contract price increases explained
Why do networks raise their prices each year? The explanation most networks give is that price rises are necessary to offset the effects of inflation and pay for their rising business costs.
Known in the industry as RPI increases or CPI increases, these price hikes are better known to the general public as mid-contract price rises.
They often happen mid-contract because they fall in the same month every year, while mobile contracts can start at different times. In theory, someone starting an 18-month contract in February could see two price increases because their minimum contract period includes two April's.
Before the new Ofcom and ASA rules came in, networks would typically use either the Consumer Price Index or the Retail Price Index (RPI) to set their annual price increases, then add on an extra percentage, usually 3.9%. The rises cover expenses like the cost of utilities or upgrades to their networks.
Remember, the new rules at Tesco Mobile don’t apply to contracts taken out before December 2024, so if your mobile contract is older, you’re likely to still see these percentage-based increases on your bill.
Are there any other providers who won’t raise prices mid-contract?
Tesco Mobile is one of a few mobile networks that offer customers the chance to freeze their monthly costs for the life of the contract. Others include GiffGaff, Sky Mobile, Lebara and Lyca Mobile.
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?
If you’re not on a Clubcard deal, or your Clubcard deal has reached the end of its minimum period, it’s worth looking around. There may be another tariff or provider that suits you better.
If you’re within your minimum contract period with Tesco Mobile, though, you may be charged an early termination charge (ETC) if you cancel your plan. The amount of this charge depends on how far into the contract you are. You can see full details of the ETC in Tesco Mobile’s terms and conditions.
Can I cancel without paying a fee?
It’s possible to leave your contract early and fee-free under certain circumstances. Ofcom rules say that if your contract changes in a way that leaves you worse off, and if you weren’t made aware of the change when you took the contract out, you can exit without penalty. In this situation, you should also get a month’s notice before the change happens.
If you think you may be entitled to leave fee-free or if you’re unsure, it’s best to get in touch with Tesco Mobile to see what your options are and whether you can reach an agreement with them.
How to get in touch with Tesco Mobile
You can contact Tesco Mobile’s Customer Care and Tech support teams via phone between 8am and 9pm Monday to Friday, 8am to 8pm on Saturdays and 10am to 6pm on Sundays.
Call 4455 from your Tesco Mobile
Or call 0345 301 4455 from another network.
If you’re unable to pay your bill or are worried about it, Tesco Mobile offers some options, like flexing your tariff or moving your monthly payment date. Find out more about the support available from Tesco Mobile.
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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