What the O2 mobile price rise reveals about your contract rights in 2025

Mobile and broadband bills are back in the headlines. In October 2025 Ofcom criticised O2 for increasing prices in a way that appears to go beyond what customers agreed when they signed their contracts. The dispute has raised an important question for consumers in the UK in 2025: what exactly are your rights when a provider changes the price mid contract.

What Ofcom changed for mid contract price rises in 2025

In July 2024 Ofcom confirmed new rules on how telecoms providers can build price rises into contracts. From 17 January 2025 phone, broadband and pay TV providers are prohibited from including inflation linked or percentage based price rise terms in new deals. Instead they must set out clearly in pounds and pence how much bills will increase each year over the full term.

This means that for new contracts taken out from 17 January 2025, providers can still increase prices annually, but they must state the exact amount in advance, for example £3 more per month every April.

Source: Ofcom – Ban on inflation linked mid contract price rises

Consumer sites such as Uswitch explain that for older contracts taken out before the change, inflation linked rises are still allowed if they were written into the terms and conditions. For newer contracts, customers should see a fixed number rather than a percentage or a reference to CPI or RPI.

Source: Uswitch – Broadband mid contract price increases in 2025 explained

What O2 has done and why it matters

On 30 October 2025 Ofcom published a statement on O2s decision to increase prices more than customers were expecting. O2 plans to raise monthly charges by more than was clearly set out in some contracts, which will mean an annual increase of around £30 for many customers from April 2026.

Source: Ofcom – Statement on O2 price rises

Coverage in UK media reports that many O2 customers will see their monthly charge rise from about £1.80 to £2.50 on certain elements, a jump of roughly 16.9 percent. Ofcom has said it is disappointed and that the change goes against the spirit of the new rules, which are meant to give people certainty about what they will pay.

Sources:

• TechRadar – UK phones watchdog response to O2 price rise
• The Scottish Sun – How O2 customers can cancel for free

According to these reports, affected customers have 30 days from receiving notice to cancel their contract without paying early termination fees. This is because the rise goes beyond what was set out when they signed up.

Why Martin Lewis and others are calling for tighter rules

MoneySavingExpert founder Martin Lewis has written to Chancellor Rachel Reeves asking the government to act on what he describes as a loophole in the way the new rules are being applied. He argues that although Ofcom banned percentage based and inflation linked rises for new contracts, some providers are still finding ways to push through unexpected increases.

Source: MoneySavingExpert – Martin Lewis letter on Ofcoms mid contract price hike rules

His key concerns are:

• Consumers may reasonably believe the new rules fully protect them from surprises, even when contract wording leaves wiggle room.
• The burden is still on the customer to read long terms and conditions and spot complex clauses.
• People who do not challenge rises or do not know they can leave may end up overpaying for years.

What your rights are if your provider puts prices up

The exact rights depend on when you signed your contract and what it says, but the general principles are:

1. Contracts signed before 17 January 2025

   • If your contract included a clear inflation linked or percentage based rise, the provider can usually apply it.
   • If they increase prices by more than the formula allows, you should normally have the right to leave penalty free.

2. Contracts signed from 17 January 2025 onwards

   • Any annual increase must be set out as a fixed amount in pounds and pence when you sign up.
   • If the provider raises prices more than that, Ofcom expects that you must be allowed to exit without early termination fees.

3. Notice periods and communication

   • Providers must give at least 30 days notice of price changes for communications services.
   • You usually have 30 days from receiving that notice to decide whether to accept the change or leave.

These are general rules. Individual cases can vary and consumers should check their own contract, and where needed seek advice from bodies such as Citizens Advice.

Practical steps if you receive a price rise notification

If your mobile or broadband provider announces a mid contract price rise in 2025, you can take several practical steps:

1. Read the message carefully

   • Check exactly how much your bill will increase and from what date.
   • Look for any wording about your right to leave without penalty.

2. Compare with your original contract

   • If you still have your paperwork or email, check what it said about price rises.
   • For newer contracts, see whether the rise matches the number stated in pounds and pence.

3. Contact the provider if anything is unclear

   • Ask directly whether you can leave penalty free.
   • Note the date and time of any calls and what was said.

4. Shop around before deciding

   • Use comparison sites to check what other providers would charge for similar minutes, data and speed.
   • Some customers may find that even with a price rise their current deal is still competitive.

5. Decide before the deadline

   • If you want to switch, make sure you act within the notice period, usually 30 days.
   • For mobile, you can use the text to switch service to move your number.

Ofcom itself encourages customers to switch if they are unhappy with price rises that go beyond what they originally agreed.

Source: Ofcom – Statement on O2 price rises

How to reduce the risk of bill shocks in future

When you next take out a mobile or broadband contract, there are ways to reduce the risk of surprise increases:

• Prefer contracts with clear fixed rises where the total cost over the full term is easy to calculate.
• Avoid deals where you are unsure how prices can change or where documents are not clear.
• Consider shorter contracts so that you can switch more often if better deals appear.
• Check for social tariffs if you receive certain benefits, as these are often cheaper and more stable.

Uswitch and other comparison sites stress that reading the key facts summary before you sign is now even more important, because the rules on how rises are displayed have changed.

Source: Uswitch – Broadband mid contract price increases in 2025 explained

The wider impact on household budgeting

Mid contract price rises matter because phone and broadband are now essential services rather than luxuries. For households already facing higher energy, food and housing costs, an extra £30 or more a year on a mobile contract, or larger increases on broadband, can push budgets further into the red.

Consumer advocates argue that more predictable bills help people plan and avoid problem debt. The government has already asked Ofcom to look again at whether the new regime is working as intended, following the O2 case and similar price decisions.

Source: ISPreview – Government pushes Ofcom to tackle mid contract hikes

The bottom line

The row over O2s latest price rise is not just about one company. It shows that even after Ofcoms 2025 reforms, customers still need to be alert to how price rise clauses work in practice.

The key lessons are:

• New contracts should spell out rises in pounds and pence, not percentages.
• If a provider goes beyond what you agreed, you are likely to have a right to leave without penalty.
• Acting quickly when you receive a price rise notice gives you more options to protect your budget.

Understanding these rights can help UK consumers make better decisions, avoid overpaying and keep essential bills under control in a year when many costs are still under pressure.

References:

• Ofcom – Ban on inflation linked mid contract price rises
• Ofcom – Statement on O2 price rises
• Uswitch – Broadband mid contract price increases in 2025 explained
• MoneySavingExpert – Martin Lewis letter on mid contract price hike rules
• TechRadar – Watchdog response to O2 price rise
• ISPreview – Government push on broadband and mobile price hikes