Thousands of businesses across the UK will see their mobile bills soar by as much as 11.7 per cent in April due to inflation rates and the cost of running their services being passed onto the customer. 

Both O2 and Virgin Mobile will be increasing their prices by 11.7 per cent while Three will hike costs by 4.5 per cent. Vodafone have also announced pricing increases of up to 9.3 per cent. 

They are some of the biggest increases to mobile prices in recent times! But like many businesses they are facing a significant rise in the cost of running their networks and providing their services. 

Here, Spinnaker takes a look at which customers are affected, when the price hikes will come into play and how you can cut down on your mobile bills. 

All O2 pay monthly customers who joined or upgraded prior to 25 March 2021 will receive a price increase of 7.8 per cent in line with January’s RPI rate of inflation. 

Meanwhile, those who joined after that date will see a hike of 7.8 per cent plus 3.9 per cent – a total of 11.7 per cent. 

A statement from o2 said: 

“We recognise price changes are never welcome, and always balance keeping our prices competitive with the need to continue investing in the services that our customers use and love.” 

Virgin Media have announced to their customers that no matter when they joined, they will see a rise of 11.7 per cent. 

However, the firm have said it first wrote to customers in January to advise of this change, and they could give 30 days' notice to exit with no penalty, as the change is an alteration to their terms and conditions. 

Meanwhile, Three is charging customers who joined or renewed after 29 October 2020 an extra 4.5 per cent in April. It is a fixed price not tied to inflation. 

Customers who joined before this date are still on previous terms and conditions and therefore will see a 7.8 per cent RPI increase in May. 

EE customers will see a change of 9.3 per cent, based on December’s rate of CPI 5.4 per cent plus 3.9 per cent. 

On average, these customers will see a monthly increase of £3.50 or £42 a year. 


How to cut your bills 

Despite increasing tariffs, there are ways for businesses to cut costs. 

The best way to reduce your mobile phone bill is if you’re out of contract. If you are still paying the same amount, but your contract has come to an end, you could be saving hundreds a year by switching to a Sim-only tariff. 

Use Spinnaker Associates to find the best deal for you. We can compare prices across all three of the major networks (o2, Vodafone & EE). 

Alternatively, if you are still in contract, Spinnaker can look to buy you out of your contract with your current provider. We will research the cheapest deals available in order for you to reduce your monthly bills.


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