- O2 has offered many of its customers a mid-contract price increase
- In some cases, this price increase is 40% more than expected
- Ofcom says it is “disappointed by O2’s decision” and has revealed advice
O2 customers are understandably unhappy this week as a surprise mid-contract price rise has raised their bills by 40% more than they were previously told.
In an email sent to affected customers (below), O2 has said that from April 2026, its contract will increase by £2.50 a month instead of the £1.80 a month stated above. In other words, that will cost customers an extra £30 per year, instead of £21.60.
This price increase affects everyone on mobile and SIM-only contracts, unless you are on O2’s ‘Essential Plan’. And the UK’s communications watchdog, Ofcom, has just slammed the move.
“We are disappointed by O2’s decision. This goes against the spirit of our rules which are designed to ensure greater certainty and transparency for customers when they sign up,” a spokesperson told us.
Ofcom has also given a slap on the wrist to UK mobile networks, not just O2. “Today we have written to the major mobile phone companies reminding them of their obligation to treat customers fairly. We encourage any customer who wants to avoid these price increases to exercise their right to exit without penalty and sign a new agreement, following our top five tips,” the spokesperson added.
To cancel your contract without penalty, you must do so within 30 days of O2 informing you of the price increase. And to help that process, Ofcom has also revealed its other top four tips for those affected.
What are your options?
Ofcom’s five tips for O2 customers (or customers of other networks in a similar situation) start with that penalty-free contract cancellation option. In short, “your supplier must give you 30 days’ notice and allow you to exit your contract without penalty if they increase prices beyond what was agreed when you signed up,” Ofcom says.
The next obvious tip is to compare prices with Price comparison sites like GoCompare and USwitch to find the best alternative deals. For example, Smarty (on Three’s network) and Talkmobile (joining Vodafone) are currently offering attractive SIM-only deals with unlimited data at the moment.
You can also use the “change text” process to exit O2 quickly. That simply involves texting ‘INFO’ to 85075, which is a free service that starts the process with a few simple instructions.
Fourthly, Ofcom says you should also consider whether you are eligible for a cheaper social rate, which is often rated as ‘essential’ or ‘basic’. If you claim Universal Credit, Pension Credit or other benefits, you could be eligible for one; For the full list of options available, see Ofcom’s social rates page. They are cheaper and fortunately the price does not increase mid-contract.
Finally, it’s worth considering which network offers the best coverage in your area. While it’s not perfect (its guides are based on mobile network predictions and crowdsourced samples), Ofcom’s Map Your Mobile tool is a handy way to get a rough idea by searching for your postcode.
Analysis: the only answer for now is to change
How is @O2 allowed to get away with increasing phone bills by 16.9%? A very nice email to receive on a Monday morning saying that they are increasing the annual monthly increase from £1.80 to £2.50.October 27, 2025
A number of O2 customers have expressed their frustration at the decision to companies such as X (formerly Twitter). Richard Webster (above) asked “how are O2 allowed to get away with increasing phone bills by 16.9%”, while @silentplayer said “leaving suppliers is the only way you are heard these days”.
The issue has also prompted MoneySavingExpert’s Martin Lewis to send an open letter to MPs asking them to “intervene to stop mobile phone, broadband and pay TV companies from raising prices mid-contract by more than they said they would when people sign up”.
Lewis also said O2’s price rise “makes a mockery” of Ofcom’s ‘pounds and pence’ consumer protection regime, which was introduced earlier this year and was also subsequently avoided by Sky, which said it would simply not inform customers about price increases before they signed up.
Commenting on its previous attempt to keep networks under control, an Ofcom spokesperson said: “We want customers to have certainty about their monthly mobile bills” and “that’s why earlier this year we banned unpredictable price rises linked to inflation and instead required providers to inform customers in advance in pounds and pence of any increases to their contract.”
Unfortunately, that hasn’t been enough to stop unexpected price increases above inflation, so more drastic government action may be necessary. In the meantime, it might be time to switch to a new network using the tips above.
Follow TechRadar on Google News and add us as a preferred source to receive news, reviews and opinions from our experts in your feeds. Be sure to click the Follow button!
And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp also.
