Why millions of mobile customers should send SINGLE text to avoid inflation-busting mid-contract price hikes now

MILLIONS of mobile customers could save hundreds of pounds annually with a single quick text, despite the inflation-busting price increases set to take effect this April.

Research by the consumer group Which? suggest that households who switch providers once their contracts have ended could enjoy immediate savings of approximately £256.

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The latest data from Ofcom reveals that 37% of all pay-monthly mobile customers are currently out of contract.

As of the end of the third quarter in 2024, there were 89.5million active pay-monthly mobile subscriptions.

This indicates that up to 31.7 million households may be out of contract with their mobile providers, potentially overpaying for their services.

At the same time, the majority of pay-monthly customers are set to face price hikes this spring, as networks introduce new inflation-busting increases to their contract rates.

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Ofcom's latest regulations mandate that telecom companies must now display mid-contract price increases in clear pounds and pence, replacing the previous system of linking price rises to inflation.

However, whether your bill increases in fixed amounts or in line with inflation depends on the date you originally signed your contract.

For example, Vodafone mobile customers who signed up for a new contract on or after July 2, 2024 will see their bills rise by £1.80 per month.

However, those who signed up before July 2 will still see their bill rise by January's Consumer Price Index (CPI) inflation figure plus an additional 3.9%.

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The Office for National Statistics (ONS) said today that CPI measured 3% in the 12 months to January.

However, there's an easy way to sidestep these price hikes entirely -switch to a new provider if you're out of contract.

To check if you're out of contract, simply text "INFO" followed by your date of birth in the format DDMMYY to 85075, and wait for a response.

You'll receive a text message confirming whether or not you would incur an "early termination fee".

These fees are only applied to customers who are still within their contract period.

If no early termination fee is mentioned, you can safely assume you're out of contract.

If you are out of contract there's a few things to consider to ensure you cut your bill.

Firstly, use comparison sites to familiarise yourself with what deals are available.

It's a known fact that new customers always get the best deals.

Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, allowances and provider.

This should make it easier to decide whether to renew your contract or move to another provider.

However, if you don't want to switch and are happy with the service you're getting under your current provider - haggle for a better deal.

You can still make significant savings by renewing your contract rather than staying on your current tariff.

If you need to speak to a company on the phone, be sure to catch them at the right time.

Make some time to negotiate with your provider in the morning.

This way, you have a better chance of being the first customer through on the phone, and the rep won't have worked tirelessly through previous calls which may have affected their stress levels.

It pays to be polite when getting through to someone on the phone, as representatives are less inclined to help rude or aggressive customers.

Knowing what other offers are on the market can help you to make a case for yourself to your provider.

If your provider won't haggle, you can always threaten to leave.

Companies don't want to lose customers and may come up with a last-minute offer to keep you.

It's also worth investigating social tariffs. These deals have been created for people who are receiving certain benefits.

PRICE RISES IN APRIL

BT

BT, which also owns EE and Plusnet, said that from March 2025, the price of mobile contracts will rise by £1.50 a month (SIM-only) or £4 (handset plans).

The pounds and pence rise will apply to contracts taken out from April 10, 2024.

For those who took out a deal before this, a 6.4% rise will apply (3.9% and January's inflation rate, which was 2.5%).

ALL O2 CUSTOMERS FACE BUMPER INCREASE

UNLIKE other mobile networks that are implementing Ofcom's new mid-contract price rise rules through a phased approach, O2 is not.

This means that all O2 mobile customers will experience an increase in their airtime plan based on the new pounds-and-pence model, regardless of when they initially signed up for their contract.

Towards the end of 2024, the mobile network reached out to customers via email to inform them of this upcoming change The email stated:

"We're writing to tell you about some changes that'll affect elements of the services you receive from us, such as out-of-bundle charges, and the way our price rises will work from 2025 onwards. Please make sure you read this information carefully and take the time to understand what it means for you.

From January 9, 2025, we'll be moving you onto the latest version of our Pay Monthly mobile agreement terms and conditions, including our recent changes to annual price rises from 2025.

With this in mind, we want to let you know that from April 2025, the cost of your airtime plan will increase by £1.80 a month."

Once again, as with other networks, the fixed pounds-and-pence increases will often lead to a significantly higher percentage rise compared to inflation-linked adjustments.

For instance, a customer on a £6.99-a-month contract taken out through a price comparison website will now face a staggering 25% increase in their bill.

By contrast, if the same customer were subject to the older inflation-based system of RPI inflation + 3.9%, their bill would have risen by just 7.5%, amounting to a modest increase of only 52p.

Three

Three has said pay monthly hikes will be capped at between £1 and £1.50 depending on the data allowance.

The pounds and pence rises will apply for contracts taken out after September 8, 2024.

For those before rises are set at 6.4% (3.9% and December's inflation rate, which was 2.5%).

Tesco Mobile

Tesco Mobile said someone on a £14.99 a month a deal would see their monthly contract price increase by 90p in April.

While, customers on a £30 a month deal will see their basic monthly price increase by £1.80.

That's for contracts taken out after December 17, 2024. On those before this date, prices will rise 6.4% (3.9% and December's inflation rate, which was 2.5%).

Sky Mobile

Out of contract Sky Mobile customers will see bills rise by £1.50 a month this Spring.

Those in contract won't see a rise.

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Vodafone

Vodafone mobile customers who signed up for a new contract on or after July 2, 2024 will see their bills rise by £1.80 per month.

Customers who signed up to a deal before this date will see their bills rise by January's CPI inflation rate (3%) plus an additional 3.9%.