Mobile giant O2 is facing fierce criticism after announcing plans to take an additional £30 per year from up to 15 million customers, a move branded a 'mockery' of consumer protection rules by money saving expert Martin Lewis.
Substantial Bill Hikes for Millions
The controversial change is scheduled to take effect on 1 April 2026, adding £2.50 to customers' monthly airtime costs. This increase is significantly higher than the £21.60 annual rise originally stipulated in customer contracts, representing a 40% jump on what people were led to expect.
Martin Lewis, the prominent financial journalist and broadcaster, did not hold back in his condemnation. He stated that this decision makes a mockery of the new 'pounds and pence' consumer protection regime introduced by Ofcom at the start of this year.
Proportional Impact and Consumer Backlash
The scale of the increase is particularly severe for customers on more affordable plans. Ernest Doku, a mobiles expert at Uswitch, provided a stark example: "On O2’s £8.50 SIM-only 12-month contract with 50GB data and unlimited calls and texts, this represents a staggering 29% increase annually."
Lewis emphasised that while the hike allows all affected mobile customers to leave their contracts penalty-free, the reality is that few will take this step. He lamented that most will 'just have to suck up a rise that was more than they were told when they signed up'.
Broader Economic and Regulatory Concerns
This move by O2 follows a similar price increase announced by Virgin Media for broadband services just weeks earlier, placing O2's mid-contract price rise at the higher end of the scale for mobile providers.
Lewis also highlighted a wider concern, noting that the rises O2 had previously notified customers about were already typically far above inflation. The new increases will now typically range from 7% to 30%. He warned that 'all this adds more inflationary pressure to the economy in its own right'.
Expressing his regret, Lewis pointed out that Ofcom did not adopt his proposal, and that of others, to simply ban above-inflation mid-contract price rises during its consultation on these changes.
