In a significant move for UK mobile users, Tesco Mobile has announced it will freeze the basic monthly usage price for its 5.4 million customers for the duration of their contracts.
A Pledge for Price Certainty
The supermarket-owned provider confirmed that customers on its exclusive Clubcard Price deals for pay monthly phone and SIM-only contracts will be shielded from mid-contract price increases. This commitment offers financial clarity and stability to households.
Laura Joseph, Chief Customer Officer at Tesco Mobile, stated: "Families deserve clarity and confidence when it comes to their mobile bills, especially in uncertain times. That's why at Tesco Mobile, we're proud to offer frozen prices on our exclusive Clubcard Price deals - giving our customers the reassurance that their basic monthly usage price won't change for the length of their contract."
She added that this initiative is part of the company's commitment to providing reliable value, a factor she says is driving more people to switch to the network.
Contrasting Industry Actions
This announcement stands in stark contrast to actions taken by other major providers. The news comes despite new Ofcom rules introduced in January 2025 that were designed to prevent unexpected mid-contract price hikes by requiring transparency at the point of sale.
However, in a controversial move, up to 15.6 million O2 mobile customers are discovering their bills will rise by 40% more than they were initially told.
The team at Martin Lewis's Money Saving Expert has advised that this unexpected hike grants customers the right to leave their contracts penalty-free if they act quickly. They suggest millions could find cheaper deals elsewhere, even while retaining the same network signal.
Expert Criticism of Regulatory Gaps
Consumer champion Martin Lewis, 52, has been vocal in his criticism, suggesting that O2's actions make a "mockery" of Ofcom's new 'pounds and pence' consumer protection regime.
He explained that the regulator's solution was for firms to disclose future price hikes in clear monetary terms at sign-up. Lewis expressed regret that Ofcom did not adopt his proposal to simply ban above-inflation, mid-contract price rises altogether.
He noted that while O2's previously announced rises were already often far above inflation, the new increases will typically be between 7% and 30% on airtime plans. Lewis warned that this behaviour could now be adopted by other mobile firms and that it adds further inflationary pressure to the economy.
