O2 Price Rises: Your Rights & Options
Understanding O2 mid-contract price increases, when they happen, how much your bill will rise, and your rights to leave without penalty. Get the facts about O2 annual price rises.
Disclaimer: This is an independent help resource and is not affiliated with O2, Telefonica UK, or Virgin Media O2. For official support, visit o2.co.uk
We've helped thousands of readers understand mid-contract price rises and their options. Here's what you need to know about O2 price increases.
When Does O2 Raise Prices?
O2 implements annual price increases every April. These mid-contract price rises affect both new and existing customers on Pay Monthly contracts, including phone contracts, SIM-only deals, and mobile broadband plans.
Key Dates for 2026
- Price Rise Announcement: O2 typically announces the increase in January or February
- Price Rise Effective Date: April 2026 (usually the first bill after 1st April)
- Your 30-Day Window: From the date you receive notification of the increase
Important: The price increase applies to your Airtime Plan only. If you have an O2 Refresh contract, your Device Plan payments remain unchanged.
How Much Do Prices Increase?
O2 uses a formula based on the Consumer Price Index (CPI) rate of inflation plus a fixed percentage. The formula is:
CPI + 3.9%
Annual price increase formula
Understanding the Calculation
- CPI Rate: The Consumer Price Index inflation rate from December of the previous year (published by the ONS in January)
- Fixed Addition: O2 adds 3.9% on top of the CPI rate
- Example: If CPI is 4%, your price increase would be 4% + 3.9% = 7.9%
In our experience: Many readers don't realise the increase only applies to the Airtime Plan, not the Device Plan. This means the actual percentage increase on your total bill is usually lower than the headline figure.
Impact on Your Bill
Here is an example of how the increase affects different plan prices:
| Monthly Plan Cost | 7.9% Increase | New Monthly Cost |
|---|---|---|
| £20 | £1.58 | £21.58 |
| £30 | £2.37 | £32.37 |
| £40 | £3.16 | £43.16 |
| £50 | £3.95 | £53.95 |
Note: These are example calculations. The actual increase depends on the CPI rate announced each January.
Your Rights to Leave
When O2 increases your prices mid-contract, you have specific rights under Ofcom regulations:
Can I Leave Without Penalty?
This depends on when you signed your contract and what type of price increase applies:
- Contracts signed before January 2024: If the increase was not clearly stated in your contract terms, you may have the right to leave penalty-free
- Contracts signed after January 2024: O2 now includes CPI+3.9% increases in contract terms, so these are considered "expected" and you cannot leave penalty-free for this reason alone
Good News: Even if you cannot leave penalty-free due to price rises, you can still request your PAC code to switch networks. You may need to pay any remaining Device Plan balance.
30-Day Notification Window
O2 must give you at least 30 days notice before implementing any price increase. From the date you receive this notification, you have 30 days to decide whether to accept the increase or leave.
How to Leave Within 30 Days
If you want to leave O2 due to a price increase, follow these steps within your 30-day window:
- Check Your Eligibility: Review your contract terms to confirm whether you can leave penalty-free. Check the date you signed and the terms regarding price increases.
- Get Your PAC Code: Text PAC to 65075 from your O2 mobile to receive your Porting Authorisation Code instantly.
- Contact O2: Call 202 from your O2 mobile or 0344 809 0202 to confirm you wish to leave due to the price increase. Mention you are within the 30-day notification period.
- Choose a New Network: Compare deals from other networks and select your new provider.
- Give Your PAC to New Provider: Your new network will handle the switch. Your number transfers within 1 working day.
- Settle Any Device Plan Balance: If you have an O2 Refresh contract, you may need to pay off your remaining Device Plan.
Quick tip from our team: Before leaving, call 202 and say you're considering leaving due to the price increase. Readers tell us O2's retention team sometimes offers discounts to keep you.
Tip: Request written confirmation from O2 that you are leaving without early termination fees due to the price increase.
Historical O2 Price Increases
Here is a record of O2 annual price increases over recent years:
| Year | CPI Rate | Total Increase | Effective Date |
|---|---|---|---|
| 2026 | TBA (January) | CPI + 3.9% | April 2026 |
| 2025 | 4.0% | 7.9% | April 2025 |
| 2024 | 4.0% | 7.9% | April 2024 |
| 2023 | 10.5% | 14.4% | April 2023 |
| 2022 | 5.4% | 9.3% | April 2022 |
Price Rise FAQs
Why does O2 increase prices every year?
Does the price increase apply to my Device Plan?
Can I negotiate with O2 to avoid the price rise?
What if I signed up after the price rise was announced?
Do Pay As You Go customers get price increases?
How do I check when my contract ends?
More O2 Price Rise Resources
If you need further assistance with O2 price increases:
- Call 202: Free from your O2 mobile (Mon-Fri 8am-9pm, Sat-Sun 8am-8pm)
- Call 0344 809 0202: From any other phone
- My O2 App: Check your contract details and chat with support
- PAC Code Guide: Learn how to switch networks
- O2 Cancellation: Full cancellation guide
Sources & References
Written by Sarah Mitchell
Mobile & Broadband Specialist
Sarah has over 8 years of experience helping UK consumers navigate mobile and broadband issues. Previously worked in telecommunications customer service and now writes guides to help others avoid common pitfalls.
Last reviewed: January 2026