Unexpected price hikes for up to 15.6 million O2 mobile customers mean millions will be eligible to find a cheaper deal elsewhere.
You may remember when Ofcom brought in the new rules earlier this year that required mobile operators to show customers how much their bill will increase each year in pounds and pence, rather than a percentage increase. This was brought in to ensure it was clear how much you would be paying for you mobile contract over the entire duration – not just the initial promotional period or the first year.
O2 have announced though that in April 2026, those who are mid-contract or out of contract will have bigger price increases than what was originally confirmed.
According to Martin Lewis’ MoneySavingExpert, the original £1.80 a month rise will now instead be £2.50 a month which 40% more, or £30 a year. This is an increase for all contracts regardless of price, so those who on lower priced plans will be disproportionately impacted. Some will see their costs increase by nearly 30%. Even those on O2’s most expensive calls, texts and data plan, which currently costs £34 a month, will see a rise of 7.4% which is above the current 3.8% Consumer Prices Index (CPI) rate of inflation.
Ofcom issued a statement saying: “We want customers to have certainty about their monthly mobile bills so they can plan their household budgets. 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.
“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.”
Which O2 customers are affected?
Nearly all O2 customers on mobile phone and SIM only contracts will see their bills increase by £2.50 a month from April 2026, regardless of whether they’re in the middle of their current contract or out of contract.
The exception to this is O2’s Essential Plan which is a social tariff for those getting certain government benefits. If you’re on this tariff, your bill won’t increase.
Also, if you’re on an O2 phone contract where the phone is billed separately from the airtime, then the phone part won’t be impacted. The increase is related to the airtime part – the part of the plan that pays for your calls, texts and data.
You can cancel or switch if you’re not happy with the increase
Customers that joined O2 before 23 October 2025 (when it announced the new price rises) will have a contract that states a £1.80 a month price rise each April – not the £2.50.
Since the new higher £2.50 price rise is effectively a negative change to the terms of your contract, under Ofcom’s rules you will have the right to leave your contract penalty-free within 30 days of O2 telling you about the change.
O2 says it has already started writing to customers to let them know – so you should expect to hear from them shortly if you haven’t already.
You can probably now get a better deal, even with the same network coverage
The price increase from O2 takes effect from April 2026, but it could be worth checking now that you’re not already overpaying, especially if you’re outside of your contract.
- Compare the cheapest SIM only deals. Use our SIM only comparison tool to check all the latest deals available.
- Compare the latest mobile phone contract deals. Need a new phone too? Use our mobile phone contract phone comparison tool.
- You can keep your number. Just text PAC to 65075. It’s free and you’ll get a code to give to your new provider either when you order or when you receive your new SIM.
- Want to stay on O2? Ask for a better deal. With the planned price increase, it may be an opportunity to get a better deal from them.
There are already some cheaper SIM only deals available
As you’ll see with our SIM only comparison tool there are some pretty cheap SIM only deals available currently, from as little as £4 a month. These include:
- Lebara | Unlimited Calls & Texts | 5GB Data for £1.99 a month for months 1-3 then £4.99 a month – Lebara uses Vodafone’s network
- TalkMobile | Unlimited Calls & Texts | 12GB Data for £5.95 a month – TalkMobile uses Vodafone’s network and includes EU roaming
- Mozillion | Unlimited Calls & Texts | 100GB Data for £12 a month – Mozillion uses EE’s network and includes EU roaming
- Mozillion | Unlimited Calls & Texts | 30GB Data for £9 a month
- Tesco Mobile | Unlimited Calls & Texts | 30GB Data for £15 a month – Tesco uses O2’s network and includes EU roaming
We’ve also done a round up of all the best SIM only deals for November 2025.
Compare the UK’s best smartphone and SIM only deals at directmobiles.co.uk
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