Tesco has announced it is increasing its mobile phone contract prices from April 2023 for some pay monthly customers. Tesco is also introducing mid-contract price rises going forward, meaning prices for some customers will rise by 14.4% in April, which is in line with inflation figures for January 2023 (10.5%) plus an additional 3.9%.
In this article, we explain the Tesco Mobile price hikes, who is affected and how to avoid the rises. We also share what you can do if you want to cancel your Tesco Mobile contract and switch mobile providers.
What are the Tesco mobile price rises?
From April 2023 customers whose contracts with Tesco Mobile ended before 1st February 2023 can expect a 14.4% increase on their monthly phone contract. The price increases have been introduced by Tesco following years of price freezes for its customers. The increases are a reflection of the Consumer Price Index (CPI) plus an additional 3.9%. If the CPI is negative in any year only a charge of 3.9% will be applied.
Consumer Price Index (CPI) measures the average change in the price of goods and services over time. It is based on a selected basket of goods and services purchased by households in the UK
Who do the Tesco Mobile price increases affect?
Up to 5million customers will be affected by the increase applied to Tesco Mobile contracts this April, but exactly who is affected depends on when their Tesco Mobile contract ends. The following table summarises who will be affected by the price hike in April 2023.
| Tesco Mobile contract type | Tesco Mobile bill increases by 14.4% in April 2023 | When will your Tesco Mobile bill increase? |
| Contract ended prior to 1st February 2023 |  |
Bill will increase by 14.4% in April 2023. Customers will be contacted via SMS or email between 20th February and 2nd March 2023. |
| Contract ends between 1st February 2023 and 31st January 2024 |  |
Your bill will not increase until April 2024*. |
| Anytime Upgrade Flex customer that paid the full contract amount upfront | |
Your bill will increase each April after the initial 12-month contract agreement ends*. |
| Anytime Upgrade Flex customer that has paid the contract amount but not upfront | |
Your bill will increase each April after the original contract agreement ends. |
| Joined Tesco Mobile before 27th March 2023 | |
Your bill will not increase each April until your contract ends. |
| Joined Tesco Mobile after 27th March 2023 | |
Your bill will be subject to mid-contract rises every April, starting in April 2024. |
*how much it will increase will be determined by the published CPI rate plus 3.9%.
How much will my Tesco Mobile bill increase?
If your Tesco Mobile contract ended prior to 1st February 2023 you can expect a 14.4% increase to your bill from April 2023. Below is a simple example of how the price increase could impact you, however, you can use a calculator on the Tesco Mobile website to calculate your individual price increase.
| Current basic monthly usage price or basic monthly price | £10 |
| Percentage Price increase | 14.4% = £1.44 |
| New basic monthly usage price or basic monthly price | £11.44 |
How to avoid the Tesco price rises
You can avoid an increase to your Tesco Mobile phone bill by doing one of the following:
- Sign up for Tesco Clubcard for free and take out an exclusive Clubcard price deal after 27th March 2023 to ensure you are not impacted mid-contract price hikes
- Take out any Tesco Mobile deal prior to 27th March 2023. Subsequent price increases will only be applied from April 2024, after your initial contract ends
- Take out a Tesco Mobile Pay As You Go (PAYG) deal as these deals are not currently subject to price increases
- If you are out of contract with Tesco Mobile you can cancel your Tesco Mobile plan with no penalty
How to switch mobile providers
If you decide that you no longer wish to stay with Tesco Mobile you can switch mobile providers easily with just a text message. If you are out of contract you can leave with no exit fees to pay, but if you are still within your contract then you may have to pay to leave. Remember, if you are still within your Tesco Mobile contract you will not be subject to any additional price hikes until your contract ends, depending on when you took out the monthly plan.
Before switching, ensure that you check the terms and conditions for other mobile providers that currently have mid-contract price rises. At present, Sky Mobile and GiffGaff have promised not to rise contract prices for customers still in contract. Additionally, if you are going abroad in 2023, consider if the network you are planning on switching to charges for data roaming in the EU. We compare the best EU roaming mobile phone providers in our article, 'Compare the best mobile network for data roaming abroad'.
