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Despite the regulator’s new rules, O2 customers will see prices rise 40 per cent more in April 2026 than originally disclosed by the mobile company.
Last year, Ofcom introduced new rules which meant mobile, TV And broadcasting companies must set out any price increases in pounds and pence before customers sign up. These rules, which came into effect in January, were intended to ban mid-contract price increases linked to inflation.
However, O2 has announced that its prices will rise by £2.50 a month in April 2026 for new, existing and re-contracting customers, although it was initially set that the annual increase would be £1.80. The mobile provider claims it never guaranteed the price rise would stay at £1.80, but personal finance journalist and founder of MoneySavingExpert.com Martin Lewis said the move makes a “mockery” of Ofcom’s new rules.
“The regulator’s solution to the dreadful above-inflation increase in mid-contract price rises was to require sign-up firms to tell you in advance, in pounds and pence, that you will face price rises during the contract period,” he said. “Now O2 is going even further, increasing more than was said in the contracts when people signed up.
A spokesperson for O2 said: “The annual increase of £2.50 per month – around 8p per day – represents excellent value for services that customers are using more than ever. We have again frozen prices on handset repayment plans and are investing £700 million in our mobile network this year to ensure we can meet growing demand and give our customers the fast and reliable connectivity they rely on.”
How to avoid O2 price rise
O2 is writing directly to affected customers about this change. If you are experiencing a price increase, you will be given the opportunity to leave your contract penalty-free. For those looking to switch, getting a SIM-only deal is a great way to save on your mobile bill, as these usually offer the best prices. I recommend using a price comparison site, like UswichTo find a deal that suits your needs.
If you are looking for unlimited data, id mobile Offering a 12-month contract at £8.50 per month for three months, then £17 for the remainder of the contract. If you can commit for 18 months, giffgaff At £15 per month for unlimited data this is your best option currently.
Don’t need that much data? Right now, you can get 60GB asda mobile For just £6 per month, but you have to commit for 24 months.
Keeping your mobile number is also easy – simply text PAC to 65075 and you will receive a code to give to your new provider.
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