Why are mobile phone contract prices rising?
Each year in March or April providers will increase their prices which in the past have added a substantial cost to peoples phone bills.
In 2024 the average increase has been around 7.9% on top of customers’ bills.
Why?
The prices always rise according to the Retail Prices Indec (RPI) or the Customer Price Index (CPI) as well as an additional 3.9% to offset the inflation rate and rising business costs for the provider
This year the RPI was 4.9% and the CPI was 4%.
Which Providers increased their prices?
You should have been given a warning 30 days before the prices increased. Providers are also legally allowing to raise prices mid-contract.
EE – 7.9% increase
O2 – 8.8% increase
Sky Mobile – (Out of contract) 3%
Talk Talk – 4% increase
Which Providers have not increased their prices?
Lebara Mobile has not increased any prices. Often the smaller providers will not rise their prices.
Others will keep their prices stable if you are in a contract or deal with them already.
GiffGaff – For those mid-contract prices have remained the same
SkyMobile - For those mid-contract prices have remained the same
Tesco Mobile – If you are signed up to a Clubcard deal will stay the same
What to do if your bills rise?
Unfortunately if you are mid-contract and your bills rise there is little you can do as exit fees are often high. You should review your contract to determine if exiting would be worth it or not. Also check to see when your contract ends to make sure you can shop around before it ends.
Uswitch has estimated this will have people paying £24.23 more on mobile phone bills.
The cost of living crisis continues to affect households with rising prices in various areas of life.