Martin Lewis, the consumer finance expert, has issued a cautionary warning to O2 customers following the telecom giant’s surprise announcement of a £2.50 monthly price increase. The unexpected hike has led to frustration among users, especially those facing large bills after choosing to leave the network.
In response to concerns, O2 stated, “We appreciate that price changes are never welcome, but we have been fully transparent with our customers about this change, writing directly to them and providing the right to exit without penalty if they wish.”
Despite this, Martin Lewis pointed out some confusion in O2’s messaging. He emphasized that customers have the right to leave penalty-free within 30 days of notification about the price increase. However, for customers on device plans, while they must continue to pay off their handsets, they can still switch their airtime service to another provider and pay the device balance monthly.
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Political voices have also joined the conversation. Labour’s Technology Secretary, Liz Kendall, criticized the price rise as “disappointing given the current pressures on consumers,” calling for a review of policies on in-contract price increases.
Ofcom, the UK’s communications regulator, echoed the government’s concerns, emphasizing that providers must treat customers fairly, though currently, regulations do allow for price increases. O2 defended the hike, stating that the additional 8p per day is justified by their significant £700 million annual investment in the mobile network and highlighted that UK consumers still benefit from competitive pricing compared to international markets.
Consumer advocates have pushed for stronger protections. Tom MacInnes, policy director at Citizens Advice, insisted that the principle of “fixed should mean fixed” must be enforced more rigorously. He warned that allowing one provider to raise prices mid-contract could set a precedent for others and called on regulators to ban mid-contract price hikes entirely.