Thousands of O2 customers face pricier monthly bills from April 1 as the company rolls out its annual price hikes. From April 1, the monthly price of mobile plans are increasing, but the amount you’ll pay will depend on your Airtime Plan. The price hikes come as a new ruling by regulator Ofcom means telecoms companies are now required to set out contract price rises in pounds and pence, rather than using percentages or inflation measures. Ofcom said the change is to help prevent the “nasty surprises” of inflation-based hikes.
It means that phone, broadband and pay TV providers are banned from linking price increases to future rates of inflation, which often include an extra percentage increase on top, which makes it almost impossible for customers to accurately estimate what they would pay.
Under the new rules, future price hikes must be set out “prominently and transparently” in pounds and pence at the point of sale, but they still allow for annual mid-contract increases by a fixed amount.
From April 1, O2 customers that are on pay-monthly and Sim-only mobile plans will pay an extra £1.80 per month, while those on Smartwatch Plans and Data only will pay an extra £0.75p per month.
If you have a device-only plan, are on pay-as-you-go, or on O2 Essential then you won’t see any price rises from April.
O2 has also said out-of-bundle charges will increase by 5% each year starting from April 1 and has advised customers to check its Extra Charges guide for current pricing information.
In a message to customers, O2 said: “Following new regulation from Ofcom we are changing the way we do annual price rises, to provide more clarity and certainty for all customers. We’ll present any changes to your bill in precise pounds and pence, rather than using percentages or inflation measures. Our goal is to make this information as transparent and easy to follow as possible.
“From April 2025, the monthly price of your mobile plan will be increasing. We’re letting you know now so you can plan ahead and be prepared. Your Airtime Plan will increase every year from your April bill by £1.80 for Voice Plans and £0.75p for Data Only and Smartwatch Plans.
“We understand price rises are never ideal and want to reassure you this will only affect your Airtime Plan, with the cost of your device remaining frozen. To find out how much you currently pay for your monthly mobile plan, sign in to My O2 to check any statement issued between April 2024 and March 2025.”
In a message about API and your O2 contract, the company added: “Each year, your monthly subscription charge will be subject to an annual increase by a fixed amount, this will be shown from your April bill onwards.
“Full details of your monthly price, including the fixed amount increases, are set out clearly in your contract forms.”
