If you're out of contract, switch to a cheaper SIM Only deal now and you won't see a price increase until 2025.
If your mobile bill is going up while you're mid-contract, you're not alone.
Most mobile providers increase their prices by a small amount each year, to combat upgrades and costs on their end. But it's never great news when there's less money in your pocket.
The Retail Prices Index (RPI) rate of inflation announced in February 2024 was 4.9%, and the Consumer Prices Index (CPI) was 4%. This has decided the price rise amount for the majority of mobile networks, many of whom add their own amount on top of this figure too.
Unfortunately, inflation-based price rises are often built into the terms and conditions of the contract you sign with your provider. So what can you do when your bill rises unexpectedly? And what rights do you have when it does? Read on and we’ll explain how contract rises work and how you can learn to navigate them.
Price rises tend to only happen once a year, with the major UK phone networks attaching their increases to the RPI or CPI rate, plus a regular amount that they will set themselves of around 3-4%.
This used to mean a hike of anywhere between 3% and 4%. But with inflation skyrocketing in 2022 and still struggling to recover, 2024 has seen increases of at least 6% across the board, with some reaching over 8%.
On a typical £30 per month phone-and-SIM contract, an 8% rise would work out at about £2.40 more per month.
Price rises tend to be confirmed in January and February, before taking effect in March and April. But since many price increases are part of a provider's policy, January 2024's RPI and CPI figures have already determined what their price rises will be.
You might be able to leave your contract free of charge, but it depends on the terms and conditions of your current contract.
Most networks are allowed to increase the price of their monthly deals by the rate of inflation, plus a set additional annual amount. They can legally do this because they mention it in your contract terms when you sign up.
That means that you can’t simply cancel your contract without paying an early exit fee.
However, if your contract is at an end, you will be free to switch providers or ask for a better offer from your current network or to compare deals and switch to another network.
Some providers, such as Tesco Mobile, only increase prices after your initial contract term has ended. So you'll be free to switch by the time you see your bill go up anyway.
Learn more about mid-contract prices rises for broadband services.
Yes. Under Ofcom rules, you can quit without paying a penny if you can prove, “material detriment.”
Ofcom says it is, “Likely to treat in-term increases to the core subscription price agreed at the point of sale as meeting this material detriment requirement and giving rise to the right of withdrawal". This is a very convoluted way of saying that having your price increased may mean you can switch to another deal without having to buy out the rest of your contract.
However, the bad news is that inflation-linked rises are hard to prove as causing material detriment. So it's a bit of a tricky one. Your best bet would be to contact your mobile phone network to see if you can reach an agreement.
Yes. Any inflationary hike covers all kinds of monthly mobile contracts, whether they’re for a handset and line rental or a simple calls, data and texts only package.
The good news is that 30-day SIM only contracts can be left at short notice, meaning you can switch to a cheaper deal if you’re unhappy about your bill going up.
Before you choose another network or deal, make sure you take a look at our full selection of SIM only deals.
And if you feel you need a bit of help switching network and transferring your number, we've got you covered with our complete guide to changing network.
It depends. If you’re a light smartphone user, then pay as you go may be a decent option for escaping the vagaries of unexpected price rises.
But one-month SIM only deals, while susceptible to price rises, are a better bet.
30-day deals mean easily switching if you’re unhappy, with the added bonus of knowing your exact allowance each month.
Need some help choosing a network? Cast your eyes on our complete guide to UK network coverage.
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