An O2 price hike for mobile customers in April 2026 has been confirmed – and the rise is higher than customers had been warned.
Under the current regulations from Ofcom, mobile providers can raise their prices mid-contract in line with inflation. However, customers must be told at the start of their contracts when prices will rise and how much by.
Customers taking out mobile plans this year were warned to expect a price jump in April. However, O2 has since announced that the rise will be 40% higher than they’d initially advised.
What is the O2 price hike?
From April 2026, all O2 mobile customers will see the price of their package rise by £2.50 a month or £30 a year. This is 40% higher than the expected rise of £1.80 a month or £21.60 a year.
The price rise is the same, regardless of your phone plan or monthly data allowance. The only exception is for O2’s social tariff, ‘the Essential Plan’, which will not rise in price.
Why is this allowed?
It seems like the O2 price hike should be banned under new regulations from Ofcom that were passed in January of this year. The telecoms regulator ruled that mobile providers should no longer be able to raise customer prices mid-contract without warning, and that customers must be told how much prices will increase at the start of their contract.
O2 has worked around this ruling by allowing customers to leave their contract without penalty – if they do so within 30 days of being informed of the change. Ofcom has released a statement that it is ‘disappointed by O2’s decision’, and that it ‘goes against the spirit of our rules’.
You can dodge the O2 price hike right now – without a penalty
If you want to avoid the coming O2 price hike in April, now is the time. O2 customers are currently able to leave their contracts without penalty, but come spring next year, when the price rise comes into effect, it will be too late.
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You can stay on O2’s network and switch suppliers
Customers may be concerned about leaving O2 because the provider has the best coverage in their area. However, you can still take advantage of O2’s network without being an O2 customer.
Many mobile providers piggyback on the O2 network, including Sky Mobile, GiffGaff and Tesco Mobile. Any of these providers will be able to offer the same coverage as O2, and many offer better value plans or other unique offers.
How to avoid future price hikes
Unfortunately, mid-contract price rises have long been a part of mobile and broadband plans. The O2 price hike is not the first time customers have been surprised by unexpected increases to their monthly bills.
To avoid potential price hikes, look for providers that guarantee that they won’t increase prices during your contract. For broadband, this often means looking at independent suppliers such as Connectivity.
If your provider does warn you about future changes to your bills, it might be the perfect opportunity to switch to a better deal.
Read our full guide to switching broadband provider without a penalty here.
