Last Updated: 4th November 2025, 07:42
Are you an O2 customer? If so, listen up: there's a big change coming. In April 2026, the network will introduce a higher annual price increase for anyone taking out a new or renewed mobile contract.
In this article, we're going to break down what exactly is changing, who it will affect and the steps you can take now to keep your mobile costs in control.
What's Changing at O2 And When
Starting from April 2026, O2 is raising their annual mid-contract increase for pay-monthly mobile airtime plans. Currently, the price stands at £1.80 per month and will be increasing to £2.50 per month for standard mobile contracts. This will apply to all existing, renewed, and new contracts, except for those on the social pricing tariff. Data-only and smartwatch plans will see a smaller increase of 75p per month.
Why Is O2 Doing This?
As explained by O2, these price increases are primarily due to the rising demand for mobile data and the need to continue investing in its network. O2 has invested hundreds of millions of pounds in upgrades, including expanding its 5G coverage and improving overall service quality. In its announcement, O2 framed the increase as "around 8p a day," aiming to show it as a modest adjustment.
It’s important to note, however, that this is not an industry-wide change. O2’s price increase goes against the limits previously agreed with the UK telecoms regulator, Ofcom, meaning it is higher than what Ofcom would typically allow for mid-contract increases.
Who This Affects & What You Can Do
This price increase will affect almost all O2 pay-monthly customers, not just those renewing or upgrading their contracts, except for social pricing tariff customers. Smartwatch and data-only plans are being adjusted by only 75p per month.
There are several steps you can take if you are a customer and are looking to stay ahead. First, review your current contract to understand when it's due for renewal. Compare alternative networks via SIM Only Finder or speak to O2 about potential retention deals. Importantly, under UK consumer law, you have the right to cancel your contract without penalty if you do not agree to the new price increase.
Exploring your options now will help you stay in control and make an informed choice about your mobile plan. This gives you the chance to make an informed and smart decision about your mobile plan.
Broader Industry Lens
Other providers may implement regular increases within the agreed Ofcom guidelines, but O2’s latest move is specific to them and not reflective of a sector-wide change. This price rise is unusual in that it exceeds previous agreements with the regulator and applies to almost all pay-monthly customers.
Conclusion
So, if you are an O2 customer or are thinking about signing up to a new contract, it is worth making a note of April 2026. Take this time to review your current plan, explore alternatives, and remember your right to cancel if you do not accept the new terms. Planning ahead ensures you can make an informed decision and avoid unexpected costs.
