O2 and Virgin Mobile hike mobile bills up to 17.3%
O2 and Virgin Mobile have confirmed bill hikes of up to 17.3% from April- here are your options
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Millions of O2 and Virgin Mobile customers will be hit by up to a 17.3% rise on their mobile bill, the biggest rise announced compared to any other provider.
Virgin Media has already announced a 13.8% price hike for its broadband customers, but it was waiting for the February inflation rate to be announced (at 10.1%) so it could set hikes for its mobile customers - which are also part of the O2 network - based on either Consumer Price Index (CPI) or the Retail Price Index (RPI).
We explain which O2 and Virgin Mobile customers are affected by the price hikes and what their options are.
O2 and Virgin Mobile bill hikes
Pay monthly and SIM-Only O2 customers with a mobile, tablet and/or smart watch who took out a deal or upgraded before 25 March 2021, will see up to a 13.4% rise on their bill. (Note, the rise is only on your airtime plan and not what you pay for your actual device).
For those on an O2 Refresh plan, the contract for paying off your device will not see a rise so your overall increase will be less than 13.4% if you took out a deal or upgraded before 25 March 2021.
Pay monthly and SIM-Only customers with a mobile, tablet and/or smart watch who took out a deal or upgraded on or after 25 March 2021, will see up to a 17.3% rise on their bill.
Again those on an O2 Refresh Plan will see an overall rise of less than 17.3% if you took out a deal or upgraded on or after 25 March 2021.
O2 pay-as-you-go customers will NOT be affected by the price hikes.
If you are a Virgin Mobile customer, all pay-monthly and SIM-Only users will see up to a 17.3% hike in their bill.
If you are on a Virgin Mobile Freestyle plan, only your airtime cost will see a price hike and not your contract for your device, so the hike will be less than 17.3%.
Note, Virgin Mobile does not offer a pay-as-you-go option and Virgin Mobile users will migrate to O2 this year, which means from 2024 you will be subject to O2’s prices.
These hikes are based on January’s Retail Prices Index (RPI) plus 3% to 4% and all hikes will come into effect from 1 April.
Can I leave penalty-free?
If you are out of your minimum-term contract, you are free to leave without paying an exit fee.
For those who will see a 17.3% hike and are out of their minimum contract, it’s worth hunting for a better mobile or SIM-only deal because even though other providers are hiking prices, it’s a lot less than O2/Virgin Mobile.
Sky Mobile is hiking prices by 9% and EE and Three customers will see a 14.1% rise in their mobile bills.
If you are within your minimum contract term you cannot leave penalty-free. What you can do is keep note of when your contract is coming to an end, so if you do want to leave you can start to look for a better deal.
Haggle for a better deal
The other option you have is to pick up the phone and speak to O2 or Virgin Media to haggle for a better deal. If you find a better deal elsewhere, ask if they are willing to price match or see if they can throw in some freebies (so you get more for your money).
Read more of our tips on how to haggle for a better deal.
Read more
Vaishali graduated in journalism from Leeds University. She has gained experience writing local stories around Leeds and Leicester, which includes writing for a university publication and Leicester Mercury.
She has also done some marketing and copywriting for businesses.
When she is not writing about personal finance, Vaishali likes to travel and she's a foodie.
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