Brits have been warned that five big mobile phone companies are set to hike their prices in April. Experts have said that “loyalty doesn’t pay”, and millions could save hundreds of pounds by switching providers. But, equally, firms will not want to lose customers to a competitor, so they could offer you a discount to stay. Ofcom banned mid-contract price rises linked to inflation percentages for new contracts earlier this year, and alternatively companies are now forced to outline “pounds and pence” price increases at the outset of contracts.
But officials did not forbid mid-contract price hikes, so these will still rise every April even if a customer signed a contract at a lower price. Be that as it may, this amount will be a monetary figure instead of a less clear percentage. “Over the next week, BT, EE, 02, Three, and Vodafone will all be hiking prices,” Alastair Douglas, CEO of TotallyMoney, said. “But, if you’re out of contract, you’re free to leave and find a better deal at no additional cost.”
Below is a list of providers and experts’ advice as to their price rises
BT and EE, March 31
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If you signed up before April 11, your bill will rise by December’s CPI rate of inflation (2.5%) plus 3.9%, totalling a 6.4% increase
O2, April 1
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If you signed up before January 9 this year, your contract will increase by January’s RPI rate of inflation (3.6%) plus 3.9%, so 7.5%
Three, April 1
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If you signed up before September 8, your bill will rise by 6.4%
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New contracts signed after September 8 will increase by £1 to £1.50, depending on how much data you use
Vodafone, April 1
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Contracts taken out before July 2 will rise based on January’s CPI rate of inflation (3.6%) plus 3.9%, so 7.5%
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New deals after this date will increase by £1 for basic plans and £1.50 for others
Mr Douglas added: “If you’re unsure where you stand, then all you need to do is text ‘INFO’ to 85075, and you’ll receive a message telling if you can move, and if there are any charges.
“Loyalty doesn’t pay, and with one in three out of contract, millions of people could save hundreds of pounds.
“When looking for a new provider, always shop around and consider smaller network providers who’ll often offer better deals and at lower prices.
“Just check the coverage before you sign up and remember that if you’re not happy with the network, you’ll have a minimum of 14 days to cancel without paying a penalty.”
Aaron Peake, personal finance expert at credit score app CredAbility, said: “If you’re happy with your current provider but want a better deal, it’s worth giving them a call. They won’t want to lose you to a competitor, so they might offer you a discount to stay.
“But remember, loyalty rarely pays and switching to a new contract could save you money. You can get a SIM-only deal for as little as £5 per month, so it’s worth shopping around.”
