- O2 has given many of its customers a price increase in the intermediate contract
- In some cases, this price increase is 40% more than expected
- Ofcom says it is “disappointed by O2’s decision” and has revealed tips
O2 customers are understandably unhappy this week as a surprise mid-contract price hike has pushed their bills up by 40% more than they were previously told.
In an email sent to affected customers (below), O2 has said that from April 2026 their contract will increase by £2.50 per month instead of the previously quoted £1.80 per month. In other words, it will cost customers an extra £30 a year instead of £21.60.
This price rise affects everyone on mobile and SIM-only contracts, unless you’re on O2’s ‘Essential Plan’. And Britain’s communications watchdog, Ofcom, has just strongly criticized the move.
“We are disappointed by O2’s decision. This goes against the spirit of our rules, which are designed to ensure greater security and transparency for customers when they sign up,” a spokesperson told us.
Ofcom has also dealt a blow to Britain’s mobile networks, not just O2. “Today we have written to the major mobile operators reminding them of their obligations to treat customers fairly. We encourage any customer who wants to avoid these price increases to exercise their right to leave without penalty and sign up to a new deal, following our top five tips,” the spokesperson added.
To leave your contract without a penalty, you must do this within 30 days of O2 telling you about the price increase. And to help with that process, Ofcom has also revealed its four other key tips for those affected.
What are your options?
Ofcom’s five tips for O2 customers – or customers on other networks in a similar situation – start with the penalty-free contract termination option. In short, “your provider must give 30 days’ notice and let you leave your contract without penalty if they increase prices beyond what you agreed to when you signed up”, Ofcom says.
The obvious next tip is to shop around with price comparison sites like GoCompare and USwitch to find the best alternative deals. For example, Smarty (on Three’s network) and Talkmobile (as piggybacks on Vodafone) are currently offering compelling SIM-only deals with unlimited data right now.
You can also use the ‘text-to-switch’ process to exit O2 quickly. It simply involves texting ‘INFO’ to 85075, which is a free service that gets the process started with some simple instructions.
Fourth, Ofcom says you should also consider whether you’re eligible for a cheaper social tariff – these are often labeled “essential” or “basic”. If you claim Universal Credit, Pension Credit or other benefits, you may be eligible for one – to see the full list of options available, check Ofcom’s social charges page. They are cheaper and, helpfully, the price does not increase mid-contract.
Finally, it’s worth considering which network offers the best coverage in your area. While not perfect (its guides are based on predictions from mobile networks and crowdsourced samples), Ofcom’s map your mobile tool is a handy way to get a rough idea by searching your postcode.
Analysis: The only answer right now is to switch
How are @O2 allowed to get away with increasing phone bills by 16.9%? Such a lovely email to receive on a Monday morning saying they are increasing the annual monthly increase from £1.80 to £2.5027 October 2025
A number of O2 customers have vented their frustration at the decision on the likes of 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 providers is the only way you get listened to these days”.
The issue has also prompted Martin Lewis of MoneySavingExpert to send an open letter to MPs asking them to “step in to stop mobile, broadband and pay-TV companies increasing prices mid-contract by more than they said they would when people sign up”.
Lewis also said O2’s price hike “makes a mockery” of Ofcom’s “pound and pence” consumer protection regime, which was introduced earlier this year – and subsequently also avoided by Sky, which said it would simply not tell customers about price rises until they signed up.
Commenting on its previous attempt to keep the networks in check, an Ofcom spokesman said that “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 tell customers in advance in pounds and pence of any increases in their contract”.
Unfortunately, this has not been enough to stop the unexpected price rises above inflation – so more drastic government action could be needed. In the meantime, it may be time to switch to a new network using the tips above.
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