Key Highlights
- Martin Lewis warns up to 15 million O2 customers of upcoming price increases.
- O2 announces a £30 annual increase in bills from April 2026.
- This change is seen as a violation of Ofcom’s new “pounds and pence” consumer protection regime.
- MSE.com highlights the impact on various O2 contracts, including Sim-only plans and handsets.
O2 Customers Warned of Upcoming Price Increases
Leading financial guru Martin Lewis has warned up to 15 million O2 customers that their monthly bills will rise significantly next year. According to MSE.com, the increase is set to be more than previously disclosed by the mobile network provider.
New Price Hike Details
In January 2025, Ofcom introduced a new “pounds and pence” consumer protection regime, requiring mobile providers to clearly state annual price increases. O2, however, has announced that from April 2026, customers will see their monthly bills increase by £30 each year. This is an increase of £18.40 per year compared to the £21.60 increase stated in previous contracts.
Consumer and Industry Reactions
Martin Lewis described this move as “a bit like it makes a mockery” of Ofcom’s new regulations. He argued that these rules were intended to prevent hidden price hikes, yet O2 is now implementing larger increases than advertised. This behavior could set a precedent for other mobile providers.
According to MSE.com, almost all O2 customers on both mobile and Sim-only contracts will see their bills rise by £2.50 a month from April 2026. However, the ‘Essential Plan’ social tariff, which serves those receiving certain benefits, will not be affected.
Company Response
O2 defended its decision, stating that demand for mobile data is at an all-time high and that increasing prices by £2.50 a month represents “excellent value” considering the services provided. They also highlighted investments in their network to ensure fast and reliable connectivity.
Future Implications
Martin Lewis urged Ofcom to put stricter regulations in place to protect consumers, stating that this behavior is “absolutely outrageous.” He expressed concern that O2’s actions could open the door for other providers to follow suit. MSE.com also noted that these price increases add more inflationary pressure to the economy.
