If you are an O2 mobile customer with a monthly plan, your annual mid-contract price rises are going up. The mobile provider has confirmed a new fixed annual price rise of £2.50 applies to new and existing Pay Monthly customers, up from the old rate of £1.80. The changes were implemented on October 23.
Every April, anyone with a Pay Monthly contract with O2, whether as part of paying off a smartphone plan or a SIM only plan, will see a £2.50 increase in their monthly bill. This applies to every Pay Monthly package, no matter the initial cost.
The increase comes after recent changes to mobile billing enforced by UK regulator Ofcom. From January 2025, all mobile providers have been required to state upfront in clear pounds and pence the amounts contract prices will rise each year. Previously, rises were unpredictable as they were linked to inflation, and increasing annual charges were not as clearly expressed to the buyer.
Inflation based price rises are now banned, but that does not mean annual price hikes are cheaper than before.
“With demand for mobile data at an all-time high, we’re introducing a 70p per month increase to annual price rises for O2 customers, effective each April,” an O2 spokesperson told Express.co.uk.
“An annual rise of £2.50 a month – around 8p a day – continues to represent excellent value for services that customers are using more than ever before. We’ve again frozen prices on handset repayment plans and are investing £700m into our mobile network this year to ensure we meet growing demand and give our customers the fast and reliable connectivity they rely on.”
O2 will be offering existing customers the chance to leave their contract without a penalty charge after informing them of the price rise.
“From April 2026, the monthly price of your mobile plan will be increasing. We’re letting you know now so you can plan ahead and be prepared,” O2 said on its website.
“Each April, your airtime plan will increase by £2.50 for voice plans and 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.”
For example, if your airtime plan is currently £30 and your device repayment plan is £25, your current monthly bill would be £55. After the April 2026 increase, your airtime plan will rise to £32.50 while your device repayment stays at £25, with your new monthly bill price being £57.50.
As a comparison, rival EE will increase mobile SIM only plans from March 31, 2026 by the same £2.50 for any contracts taken out after July 31, 2025. Plans taken out from April 10, 2024 to July 30, 2025 will see a £1.50 increase.
But anyone with a handset plan taken out after September 10, 2024, will see a £4 increase, with those taken out from April 10 to September 9, 2024 will go up by £1.50. A full list of EE price rises can be found here.