O2 customers will see prices rise in April 2026 by 40 per cent more than they were originally told by the mobile company, despite new rules from the regulator.
Last year, Ofcom introduced new rules, which meant that mobile, TV and broadcast companies would need to set out any price rises in pounds and pence before customers sign up. These rules, which came into force back in January, were intended to ban mid-contract price rises linked to inflation.
However, O2 has announced that its prices will increase by £2.50 a month in April 2026 for new, existing and re-contracting customers, despite initially setting out that the annual increase would be £1.80. The mobile provider claims that it never guaranteed price rises would stay at £1.80, but Martin Lewis, personal finance journalist and founder of MoneySavingExpert.com, has said that the move makes a “mockery” of Ofcom’s new rules.
“The regulator’s solution to hideous above inflation mid-contract price hikes was that on sign-up firms should tell you in advance, in pounds and pence, the price hikes you’ll face during the contract period,” he said. “Now O2 is also dancing away, increasing contracts by more than it said it would when people signed up.
A spokesperson for O2 said: “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. We’ve again frozen prices on handset repayment plans and are investing £700m into our mobile network this year to ensure we meet growing demand and give our customers the fast and reliable connectivity they rely on.”
How to avoid the O2 price increase
O2 is writing to affected customers directly about this change. If you’re facing a price rise, you’ll 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, such as Uswitch, to find a deal that suits your needs.
If you’re looking for unlimited data, iD Mobile is offering a 12-month contract for £8.50 a month for three months, then £17 for the rest of the contract. If you can commit to 18 months, giffgaff is currently your best option at £15 a month for unlimited data.
Don’t need as much data? Right now, you can get 60GB with Asda Mobile for just £6 a month, but you’ll need to commit to 24 months.
It’s easy to keep your mobile number, too — just text PAC to 65075 and you’ll receive a code to give to your new provider.
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