It’s been announced that millions of customers are set to be hit with a price rise for their mobile phone contracts in the coming months. Find out how much extra you will be paying and what, if anything, you can do to avoid it.
Well, it’s that time of year again. The eagle-eyed amongst you will have seen various reports to say that the cost of your mobile phone contract is due to rise within the next few months.
O2, EE, Vodafone and Three have all announced that they will be implementing a mid-contract price rise for their pay monthly customers.
Take a look to see how much extra you will be paying and from when:
O2 will be increasing their prices in line with January’s Retail Price Index (RPI) figure, which was 4%. This will start at the beginning of April.
Vodafone will also be increasing their prices from April. This will be based on the RPI figure from March, so we will have to wait excitedly to see how much this will be.
It appears that EE like to do certain things earlier than other companies, which is a good thing unless its a price rise. Their contracts will be increasing by 4.1% in March.
They have yet to announce when their prices will rise or by which RPI figure they will base it on. However, they didn’t announce their price rises until April last year, so we may not hear anything for another couple of months.
And the rest…
Unfortunately, there are just too many companies to check with regards to price increases. If you aren’t with one of the big 4, then check your provider’s website to see if there’s any mention of a hike. If not, then you may have to wait for contact from them.
How much is in real terms?
Around 4% seems to be the figure of choice, which is equal to 40 pence extra for every £10 you pay. So if your contract is, say, £25 per month this will mean an increase to £26.
Does a price rise mean I can leave my contract?
If you are on a fixed contract, unfortunately, no. Mobile phone companies are allowed to increase their prices in line with inflation. You can only leave penalty-free if they have failed to mention the potential rise in their terms and conditions, but nearly all contracts have included this since 2016. The only way you can escape is by proving you have suffered “material detriment” by this increase. However, as it is likely to only be around 50 pence to £1 monthly increase, this may be difficult.
Your best option is to note when your contract is due to expire and to start shopping around for a better deal 30 days before the end.
But I’m not on a fixed contract
Great. That means you can look for a cheaper tariff. Take a look at this article to see how to find a better deal and why you shouldn’t be paying more than £10 per month for your phone.