O2 price hike criticised by Ofcom – as Martin Lewis says they’ve made ‘mockery’ of rules
Ofcom has criticised O2’s decision to increase its mid-contract price hikes from £1.80 to £2.50 next year.
The regulator said it was “disappointed” by the announcement, saying it “goes against the spirit” of its rules, which are designed to give customers more certainty and clarity before signing a deal.
“Today, we’ve written to the major mobile companies reminding them of their obligations to treat customers fairly,” it added.
“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.”
Martin Lewis worried others could copy O2
MoneySavingExpert’s Martin Lewis also criticised the move, saying it feels like a “mockery” of Ofcom rules.
“The worry is now O2 has opened the door to this behaviour, other mobile firms will feel less worried about following suit,” he said.
Ofcom banned unpredictable price rises linked to inflation earlier this year. Instead, it now requires providers to tell customers upfront in pounds and pence about any increases in their contract.
O2 confirmed it was increasing its mid-contract price rises last week.
At the moment, its customers see their phone bill go up once a year, by £1.80 a month – but from 1 April 2026, O2 users will see their costs rise by £2.50 a month.
The change will apply to new and existing customers.
What did O2 have to say?
An O2 spokesperson told Money that Ofcom’s rules do not prevent companies from increasing annual price changes.
“The changes we have announced in no way breach any regulatory rules,” it said.
“We appreciate that price changes are never welcome, but demand for mobile connectivity is greater than ever, and any price change customers see on their bills is greatly outweighed by the £700m we invest each year into our mobile network to meet this growing demand.
“We have written directly to customers about this change, and they are able to exit without penalty if they wish.”
Tips for switching
Ofcom also released five of its top tips for finding a new deal after the O2 announcement.
- Know your rights – 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. That means you’re free to sign up to a new deal – either with your existing provider or with a new one.
- Shop around – Use a price comparison site to check out the best alternative deals on offer.
- Text to switch – You can switch to a new mobile provider by texting ‘INFO’ to 85075 for free.
- Consider a social tariff – These are cheaper packages for people claiming Universal Credit, Pension Credit or other benefits.
- Use the Map your Mobile tool – Put in your postcode and instantly find out which provider offers the best coverage in your area.