- O2 has given many of its customers a mid-contract price hike
- In some cases, this price rise is 40% more than expected
- Ofcom says it’s “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 a month instead of the previously stated £1.80 per month. In other words, that’ll cost customers an extra £30 per year, rather than £21.60.
This price hike affects everyone on mobile and SIM-only contracts, unless you’re on O2’s ‘Essential Plan’. And the UK’s communications watchdog, Ofcom, has just heavily criticized 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 the UK’s mobile networks, not just O2, a slap on the wrist. “Today, we’ve written to the major mobile companies reminding them of their obligations to treat customers fairly. We encourage any customer who wants to avoid these price rises to exercise their right to exit without penalty and sign up to a new deal, following our five top tips,” the spokesperson added.
In order to exit your contract without a penalty, you need to do this within 30 days of O2 telling you about the price hike. And to help with that process, Ofcom has also revealed its four other main 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 that penalty-free contract-cancellation option. In short, “your provider must give 30 days’ notice and let you exit your contract penalty free if they increase prices beyond what you agreed when you signed up”, Ofcom says.
The obvious next tip is to shop around with price comparison sites like GoCompareand USwitch to find the best alternative deals. For example, Smarty (on Three’s network) and Talkmobile (which piggybacks on Vodafone) currently offer compelling SIM-only deals with unlimited data right now.
You can also use the ‘text-to-switch’ process to leave O2 quickly. That just involves texting ‘INFO’ to 85075, which is a free service that gets the process started with some simple instructions.
Fourthly, Ofcom says you should also consider if you’re eligible for a cheaper social tariff – these are often branded ‘essential’ or ‘basic’. If you’re claiming Universal Credit, Pension Credit, or other benefits, you could be eligible for one – to see the full list of available options check out Ofcom’s social tariff page. They’re cheaper and, helpfully, the price doesn’t go up mid-contract.
Lastly, it’s worth considering which network offers the best coverage in your area. While it isn’t a 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 post code.
Analysis: The only answer for now is to switch
How are @O2 allowed to get away with increasing phone bills by 16.9%? Such a nice email to receive on a Monday morning saying they’re increasing the annual monthly increase from £1.80 to £2.50October 27, 2025
A number of O2 customers have been venting their frustration about 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’re listened to these days”.
The issue has also prompted Martin Lewis from MoneySavingExpert to send an open letter to MPs asking them to “step in to stop mobile, broadband and pay-TV firms 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 ‘pounds and pence’ consumer protection regime, which was introduced earlier this year – and subsequently also avoided by Sky, which said it simply wouldn’t tell customers about price hikes before they signed up.
Commenting on its previous attempt to keep the networks in check, an Ofcom spokesperson 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 upfront in pounds and pence about any increases in their contract”.
Unfortunately, that hasn’t been enough to stop the unexpected, above-inflation price hikes – so more drastic government action could be necessary. In the meantime, it could be time to switch to a new network using the tips above.
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