Millions of O2 customers across the UK are facing a race against time to avoid significant price increases on their mobile contracts. With just 24 hours remaining until the deadline, customers must take action by Saturday, November 22 to escape penalty-free cancellation.
The Price Hike Details
O2 users will see their monthly bills increase by £2.50 midway through their contracts, up from the current rate of £1.80. This change is scheduled to take effect in April 2026, but the window to avoid it closes tomorrow. The annual impact amounts to an additional £30 on customers' mobile bills.
An O2 spokesperson defended the increase in October, stating: "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 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."
Consumer Backlash and Expert Criticism
Consumer champion Martin Lewis of MoneySavingExpert has strongly criticised the move, arguing that it "made a mockery" of Ofcom's new consumer protection regime. The regulations, which came into effect at the start of this year, require companies to disclose potential price hikes in pounds and pence when customers sign contracts.
Lewis explained: "The regulator's solution to hideous above-inflation, mid-contract price hikes was that on sign-up firms should tell you in advance, in pounds and pence, the price hikes you'll face during the contract period. Now O2 is also dancing away, increasing contracts by more than it said it would when people signed up."
He added that while affected customers can leave without penalties, "most will likely just have to suck up a rise that was more than they were told when they signed up."
Success Stories from Savvy Customers
Several MoneySavingExpert readers have shared their successful experiences in reducing their bills after challenging O2. One customer reported: "I was paying O2 just shy of £40 a month. I contacted O2, which said the lowest they could go to was £15.24 on a 24-month contract. After threatening to leave following 30 years of loyalty, they offered me a £10 a month deal with no contract and threw in Disney+ for free for three months."
Another reader managed to secure a better deal by switching to a SIM-only plan. "My existing O2 deal was £16.64 a month for my device plan and £25.49 for my airtime plan. I found a SIM-only deal with Sky for £10 a month and 40GB data. O2 countered with 35GB for £8, saving me £17.49 monthly."
These examples demonstrate that customers who proactively contact O2 and express willingness to leave can often negotiate significantly better terms, even securing additional benefits like streaming service subscriptions.
With the Saturday deadline rapidly approaching, O2 customers are urged to review their contracts and consider their options to avoid unexpected bill increases. The penalty-free cancellation window provides a valuable opportunity for consumers to either renegotiate their current terms or switch to more competitive providers.
