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Three: mid-contract price increase explained

FInd out if your Three mobile monthly bill is going to increase, and what you can do if it has gone up unexpectedly.
Archie Burkinshaw author headshot
Written by Archie Burkinshaw, Content Editor
Updated on 15 January 2025
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Some Three mobile customers have noticed the monthly charge on their phone bill going up in the middle of their contract period. Price rises should be communicated clearly in advance, but for some customers, the price hike can still be an unwelcome surprise.

If a higher monthly payment on your phone bill mid-contract is not what you were expecting, you’re not alone. The UK’s Advertising Standards Agency (ASA) wants telecoms companies to be clearer in communicating that prices can rise during your contract. Ofcom says that 58% of pay monthly mobile customers don’t fully understand why their price has gone up.   

Ofcom and the ASA have set rules for new mobile contracts to make sure price rises are clear and don’t hit customers out of the blue. But if you’re on a contract that started before the new rules, you may get unpredictable mid-contract price hikes based on inflation rates and percentages. 

Three’s price increases for April 2025

How much your monthly charge increases this year will depend on when you took out your contract with Three.

Three has announced a new ‘pounds and pence’ price increase system. This will apply to customers who started a new contract or upgraded their existing contract from September 2024.

For these customers, there’s a tiered system of April price increases depending on how much data allowance your contract includes. 

  • 4GB or less: £1 more a month
  • 5GB-99GB: £1.25 more a month
  • 100GB or more: £1.50 more a month

Three states, these annual increases will be outlined to customers at the start of their contract. The increases will be the same every year within the contract. 

If your Three mobile contract began before September 2024, your increase will be percentage-based. If you started or upgraded your contract:

  • On or after 1st November 2022, your monthly charge will go up each April by the CPI rate for the previous December, confirmed in January 2025 as 2.5% plus 3.9%
  • Between 29th October 2020 and 31st October 2022, your monthly charge will increase every April by 4.5%
  • Between 29th May 2015 and 28th October 2020, your monthly charge will increase every May by the RPI rate from the previous January.

Mid-contract price increases explained

Mobile phone companies—and other telecoms and broadband providers—increase their prices annually to offset inflation and cover rising business costs. The price increases usually happen in March or April, but they can fall in the middle of a contract if it is taken out at a different time of the year.

Until recently, companies made these increases based on the Retail Price Index (RPI) or the Consumer Price Index (CPI) plus 3.9%.

The RPI and CPI are both inflation measures that are maintained by the UK Office of National Statistics. The CPI is the official figure for the UK’s inflation rate, while the RPI is a similar measure that is also used to set prices for some services.

The additional 3.9% is added to make sure companies can cover their rising costs.

Ofcom’s new rules require price increases to be given in pounds and pence. However, some customers on older contracts will still receive mid-contract price hikes based on these percentage rates.

Are there providers who don’t increase the price mid-contract?

Some mobile providers fix their fees for the length of your contract on some or all of their tariffs. For example, Tesco Mobile offers fixed fees with their Clubcard Price contracts, while GiffGaff has fixed prices for 18-month contracts.

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Which networks are increasing their monthly prices in 2025?

EEYes, 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 MobileNo - Lyca has promised not to raise prices until at least 2026.
O2Yes, 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.
VodafoneYes - 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.
LebaraNo mid-contract price rises

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Should I cancel my contract?

If you’ve been surprised by a mid-contract price increase on your mobile phone monthly charge, your first thought might be to cancel the contract and move to another provider with fixed-rate contracts.

This is an option, but it might come with early termination charges if you’re still within a minimum contract period. Check your contract to make sure that leaving early won’t leave you out of pocket.

The good news is that starting a new contract after January 2025 means any future price increases will be declared upfront in pounds and pence.

Can I cancel fee-free?

If you’re out of contract or your minimum contract period has ended, you should be able to leave your Three contract without paying a fee.

You can also leave free if you weren’t told about price rises when you signed the contract. If the company changes your contract during its term, they should give you a month’s notice and allow you to leave without penalty if the change doesn’t benefit you. This is according to Ofcom’s rules.

If you’re still within the minimum period and the price increase was written into the contract from the start, leaving without a fee becomes trickier. Whether you can leave fee-free depends on if you have suffered ‘material detriment’ according to Ofcom’s rules. This can depend on how specific the contract wording was.

If you’re concerned about price increases and want to leave your contract, it may be worth speaking to Three directly. You can find out what your options are and whether you can reach an agreement.

If you are unhappy with your Three deal, you can compare a range of SIM only and monthly contract deals with Uswitch.

How to get in touch with Three

From a Three phone: 333

From any other phone: 0333 338 1001

From abroad (at your standard roaming rates): +44 7782 333 333

Lines are open 08:00 to 20:00 Monday to Friday, and 09:00 to 18:00 Saturday and Sunday.

If you’re having trouble paying your bill or have difficulty managing your finances due to mental health or life events, Three has some support options available.

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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