- O2 gave many of its customers a mid-contract price increase
- In some cases, this price increase is 40% higher than forecast
- Ofcom says it is ‘disappointed by O2’s decision’ and revealed advice
O2 customers are understandably unhappy this week as a surprise mid-contract price rise sent their bills up 40% more than they were previously told.
In an email sent to affected customers (below), O2 said that from April 2026 their contract would increase by £2.50 per month instead of the previously stated £1.80 per month. In other words, it will cost customers £30 more per 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 Ofcom, the UK’s communications watchdog, has just strongly criticized the decision.
“We are disappointed by O2’s decision. It goes against the spirit of our rules which aim to provide greater certainty and transparency for customers when signing up,” a spokesperson told us.
Ofcom also gave the UK’s mobile networks a slap on the wrist, not just O2. “Today we have written to the major mobile phone companies to remind them of their obligations to treat their customers fairly. We encourage any customer wishing to avoid these price increases to exercise their right to exit without penalty and sign up to a new offer, following our top five tips,” the spokesperson added.
In order to cancel your contract without penalty, you must do so within 30 days of O2 announcing the price increase. And to help with this process, Ofcom has also revealed its other four top 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 this penalty-free contract cancellation option. In short, “your provider must give 30 days’ notice and allow you to cancel your contract without penalty if they increase prices beyond what you agreed when you signed up,” says Ofcom.
The next obvious tip is to shop with price comparison sites like GoCompare and USwitch to find the best alternative deals. For example, Smarty (on the Three network) and Talkmobile (which is powered by Vodafone) currently have great SIM-only deals with unlimited data.
You can also use the text-to-switch process to quickly exit O2. This simply involves texting “INFO” to 85075, a free service that starts the process with a few simple instructions.
Fourth, Ofcom says you should also consider whether you are entitled to a cheaper social tariff – these are often referred to as ‘essential’ or ‘basic’. If you’re claiming Universal Credit, Pension Credit or other benefits, you may be eligible – to see the full list of options available, see Ofcom’s social rates page. They are less expensive and fortunately the price does not increase mid-contract.
Finally, it’s worth determining 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 solution for now is to change
How can @O2 get away with a 16.9% increase in phone bills? Such a nice email to receive on a Monday morning announcing 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 with the decision on sites like X (formerly Twitter). Richard Webster (above) asked “how are O2 allowed to get away with increasing their phone bills by 16.9%”, while @silentplayer said that “leaving providers is the only way you’ll be heard these days”.
The issue also prompted MoneySavingExpert’s Martin Lewis to send an open letter to MPs asking them to “step in to stop mobile phone, broadband and pay TV companies from raising mid-contract prices by more than they said when they signed up”.
Lewis also said O2’s price rise “makes a mockery” of Ofcom’s consumer protection regime, which was introduced earlier this year – and subsequently also avoided by Sky, which said it would simply not inform customers of price rises before they signed up.
Commenting on its previous attempt to control the networks, an Ofcom spokesperson said that “we want customers to have certainty over their monthly mobile bills” and “that’s why, earlier this year, we banned unpredictable price rises linked to inflation and instead asked providers to notify customers in advance, in pounds sterling and pence, of any increase to their contract.”
Unfortunately, this was not enough to stop unexpected price increases above inflation, so more drastic government measures may be necessary. In the meantime, it may be time to upgrade to a new network using the tips above.
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