O2 Price Rise: What the Mid-Contract Increase Means for Your Bill
Mobile price rises are confusing because two pricing methods exist side by side. This page explains both, so you know which applies to you.
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What goes up
A price rise applies to the airtime plan — the part of your bill covering calls, texts and data. On most O2 Refresh agreements the device repayment is a separate credit agreement and is not supposed to move because of this rise. Check your bill's breakdown to see the two listed apart.
How the rise is calculated depends on when you joined. Older contracts may carry a formula linked to inflation (RPI or CPI) plus a fixed percentage. Newer contracts use O2's pounds-and-pence pricing instead, a fixed amount rather than an inflation-linked percentage.
Why rules changed
Ofcom banned inflation-linked rise terms in new mobile contracts from the date shown above, so customers would know a rise's cost in pounds before signing up. Contracts started after that date should show a fixed pounds-and-pence figure instead of a formula. Older contracts may keep the inflation-linked formula until you renew.
Despite the change, most tariffs now rise by more under pounds-and-pence pricing than the older method would have produced. A fixed amount can be a larger share of a cheaper plan's bill than of a pricier one, so two customers see different percentage effects from the same pound figure.
Work out what the rise means
Use figures from your own O2 notice. This tool does the arithmetic only — it does not know your account.
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See the full Transparency DashboardYour exit rights
Whether a price rise lets you leave without a penalty depends on your contract's start date and the exact terms you agreed to. O2 has sometimes given affected customers a short window to leave without an early-exit charge — check your own letter or email for whether this applies to you and what the deadline is.
If you decide to leave, you will usually need to give notice and may need a PAC or STAC code to keep your number or go pay-as-you-go. See our contract-ending guide for the steps.
Can I leave O2 because of the price rise?
It depends on when you joined and what your terms say. Ofcom's rules on fair mid-contract increases apply to contracts agreed after the rule change; older contracts may carry different terms. Check the letter or email O2 sent you for your own exit date and read the terms you agreed to.
Does the price rise affect my device plan too?
On most O2 Refresh agreements the airtime plan and the device plan are separate. The rise applies to the airtime plan only — calls, texts and data. Your device repayment is a separate credit agreement and is not supposed to change. Check your bill's breakdown to see the two listed apart.
When is the price rise applied?
O2 has applied its annual rise each April in recent years. Your own notice will state the exact date it takes effect on your account.
How is the rise figure worked out?
Older contracts may use a formula linked to inflation (RPI or CPI) plus a fixed percentage. Newer contracts show a fixed amount in pounds instead. Your notice states which method applies to you and the resulting figure.
Is a fixed pounds rise better or worse than a percentage rise?
It depends on your monthly airtime cost. A fixed pounds rise can be a larger percentage increase on a cheaper plan than on a pricier one. Independent research suggests most tariffs rise by more under pounds-and-pence pricing than the older method would have produced. See the figures at the top of this page, then use the calculator with your own notice figures.
Calls charged at your standard UK rate and included in most inclusive-minute plans.
Mon–Fri 09:00-18:00 (Europe/London)
Calls recorded for quality; recordings deleted after 30 days.
You are never charged a fee by phoneswitcher for calling us. Your call is answered by independent UK advisers working with phoneswitcher. phoneswitcher may receive a fee from its advisory partners for the call.