Multiple mobile phone providers are hiking their mobile phone contracts for millions of customers from April and some customers can expect a price increase of up to 17.3%. The increase in mobile phone contracts is in line with inflation and providers usually add their own percentage increase on top. Tesco is the latest mobile provider to hike prices despite its previous pledge not to increase prices mid-contract price.
In this article, we look at which mobile phone providers have mid-contract price rises, why the price increases are happening and how to save money on your mobile phone bill. If you have a broadband contract and are unsure if you are affected by price rises, you can read our article here, 'Broadband price increases for 2023 – provider price rises revealed'.
Can mobile prices go up mid-contract?
Mobile phone contract prices can increase mid-contract, however, providers are required to ensure that the price increase is fair and that customers are notified. Some mobile providers notify customers within 30 days of the price increase and give customers the opportunity to leave the contract penalty-free, while others have the terms noted in contracts. Ofcom has recently announced that it is reviewing the way that providers hike up prices mid-contract.
Cristina Luna-Esteban, Ofcom’s Director of Telecoms Consumer Protection says "Customers need certainty and clarity about what they will pay over the course of their contract. But inflation-linked price rises can be unclear and unpredictable. So we’re concerned that providers are making it difficult for customers to know what to expect".
Why are mobile phone contract prices going up?
Mobile phone contract price rises are based on a number of factors including inflation, consumer competition and network investments. Most mobile phone contract price rises are calculated based on the Consumer Price Index (CPI) or the Retail Price Index (RPI) as well as a fixed rate determined by the provider, which is usually around 3.9%. Exactly how much your bill will increase will vary between providers but for 2023 could be as much as 17.3%. Take a look at the table below to find your provider and its mid-contract price rise policy.
When is my mobile phone bill increasing?
Most mobile phone contract price increases will take place at the end of March or the beginning of April 2023. Information as to when each individual provider is increasing prices can be found in the below table.
Which mobile phone providers are increasing prices in 2023?
The following comparison table highlights the main mobile phone providers that are rising prices in 2023.
| Provider | Mid-contract price rises | Mid-contract annual price rise policy | 2023 mid-contract price rise |
|---|---|---|---|
| O2 |  |
RPI + 3.9% if the contract started from 25th March 2021
RPI if the contract started 25th March 2021 Increase only affects the price of the Airtime Plan, not the monthly Device Plan repayment |
17.3% from 1st April 2023
(based on January 2023 RPI) |
| BT Mobile | |
CPI + 3.9% | 14.4% from 31st March 2023
(based on December 2022 CPI) |
| EE | |
CPI + 3.9% | 14.4% from 31st March 2023
(based on December 2022 CPI) |
| giffgaff |  |
No increase (prices fixed until 31st December 2023) | N/A |
| iD mobile | |
CPI + 3.9% if you joined or upgraded to a new 24th handset plan or after 01/11/2022 and before 01/02/2023
Some older contracts could be subject to an RPI-based increase |
14% from April 2023
(based on January 2023 CPI) |
| Plusnet | |
CPI + 3.9% | 14.4% from 31st March 2023
(based on December 2022 CPI) |
| Sky | |
No increase promise | N/A |
| Talkmobile | |
CPI + 3.9% if your contract started after 30/03/2021
For older contracts increases will be in line with RPI |
14% from 1st April 2023
(based on January 2023 CPI) |
| Tesco | |
No increase if you joined before 23rd March 2023, but there will be mid-contract increases introduced for certain new customers after this date | 14.7% for those out of contract on 1st April 2023 |
| Three | |
CPI + 3.9% if your contract started or upgraded on or after 01/11/2022
4.5% if you joined or upgraded between 29/10/2020 and 31/10/22 |
14.4% from April 2023
(based on December 2022 CPI) |
| Virgin Mobile | |
RPI rate plus 3.9% on airtime plans | 17.3% from 1st April 2023
(based on January 2023 RPI rate) |
| Vodafone | |
CPI + 3.9% if your contract started after 09/12/2020
Increase only affects the price of an Airtime Plan, not the monthly Device Plan repayment for Vodafone EVO customers |
14.4% from April 2023
(based on December 2022 CPI) |
Sources: The Metro and The Sun
Which mobile phone providers don't increase prices mid-contract?
At present, giffgaff and Sky are not increasing their prices in 2023, although this may change in the future.
Tesco Mobile has also pledged not to increase prices mid-contract for those on an exclusive Clubcard deal or for those that take out a phone contract prior to 27th March 2023. However, Tesco customers that were out of contract before 1st February 2023 can expect a price rise in April 2023. More information on which Tesco Mobile customers can expect a price increase this year can be found in our article, 'Tesco Mobile price rises - who is affected and how to avoid them'.
Can I cancel my mobile phone contract when the price increases?
It depends on the mobile phone provider you have a contract with and whether you are still in contract. If you are out of contract it is likely that you will be able to leave without penalty. If you are still in contract, you may be able to leave penalty-free depending on the provider.
Some mobile providers give 30 days notice prior to a price increase and allow you to leave the contract penalty-free. Other providers include price increases in the contract terms when you sign up, making it unlikely that you will be able to leave without paying a penalty. Check the T&Cs of your mobile contract provider to see if you are eligible to leave the contract fee-free.
How to switch mobile phone providers
If you are out of contract and wish to switch mobile network providers you can do so with a simple text message. When comparing providers, however, there are a number of things that you should consider including whether the new provider has mid-contract price rises or whether you will be charged for EU roaming when abroad.
How to save money on your mobile phone contract
If you are concerned about the price increases in your mobile phone contract, there are a number of ways that you can save money. We list some of these below but additional money-saving tips can be found in our article, 'How to save money on your mobile phone bill'.
How to save money on your mobile:
- Haggle with your existing provider
- Shop around using a comparison site such as Uswitch to compare multiple providers at once
- Switch to Pay As You Go and only pay for what you use
- Check if you are eligible for a social tariff
