O2 Customers Face Significant Bill Increases
Up to 15.6 million O2 mobile phone customers will experience a substantial rise in their monthly bills. The change comes as the phone network has announced a new mid-contract policy that will increase airtime costs by £2.50 per month for all customers, compared to the previously stated £1.80, starting in 2026.
From 1 April 2026, O2 customers will see their monthly bills increase more than they were initially informed when signing up for their contracts. The annual increase will be £30, which is a 40% rise from the previous £21.60 annual increase outlined in their contracts.
This adjustment disproportionately affects customers on cheaper deals, according to price comparison website Uswitch. For instance, on O2’s £8.50 Sim-only 12-month contract with 50GB data and unlimited calls and texts, this represents a staggering 29% increase in the annual bill.
The parent company, Virgin Media O2, claims that the price hike offers "excellent value for services." This development follows recent price increases by Virgin Media on broadband services, while EE and BT also raised prices mid-contract in July.
In January, the telecommunications regulator Ofcom introduced rules requiring mobile providers to clearly show customers how much their bill will increase each year in pounds and pence before signing a contract. These regulations aimed to ensure transparency about total costs over the contract period and prevent unexpected mid-contract price hikes.
The sudden price increase means that O2 customers affected by the change can now leave their contract without any penalty. Ernest Doku, a mobiles expert at Uswitch, commented: "This move places O2’s mid-contract price rise among the highest of mobile providers so far."
He added: "With different networks adopting varying approaches to price increases, it's crucial to compare available deals to ensure you're getting the best value. Since this increase applies to both new and existing users, O2 customers aren’t obligated to accept this rise and can exit their contracts without penalties."
Doku continued: "It only takes a few minutes to run a comparison, and there are several mobile providers such as Smarty, Lebara, and Voxi who do not raise prices mid-contract."
O2’s Response to the Price Hike
An O2 spokesperson said: "With demand for mobile data at an all-time high, we’re introducing a 70p per month increase to annual price rises for O2 customers, effective each April."
They added: "An annual rise of £2.50 a month – around 8p a day – continues to represent excellent value for services that customers are using more than ever before."
O2 also mentioned that they have frozen prices on handset repayment plans and are investing £700 million into their mobile network this year to meet growing demand and provide fast, reliable connectivity.
Customers on social tariffs remain exempt from any price changes as part of O2’s efforts to support those who need it most.