Millions of O2 customers are facing a brutal bill shock this spring, with price hikes of up to 17.3% set to hit from April. Consumer rights champion Martin Lewis has issued an urgent warning for customers to check their contracts and understand their options.
The Inflation Plus 3.9% Trap
Most mobile providers, including O2, build annual price increases into their contracts based on the Consumer Price Index (CPI) rate from January plus an additional 3.9%. With January's CPI sitting at 4%, this creates a perfect storm for customers facing a total 7.9% increase.
Why Some Face 17.3% Increases
The situation is even more severe for customers who joined O2 before spring 2021. These customers face the Retail Price Index (RPI) measure of inflation plus 3.9%. With RPI currently at 13.4%, their bills could skyrocket by a staggering 17.3%.
Martin Lewis's Crucial Advice
The Money Saving Expert founder highlights a critical window of opportunity: If your price rise notification gives you less than 30 days' notice, you can leave your contract penalty-free. This escape route could save customers hundreds of pounds.
What You Need to Do Now
- Check when your contract officially started
- Look for any price rise notifications from O2
- Calculate exactly how much your bill will increase
- Explore switching options if you're within your rights to leave
With the April deadline approaching fast, millions of Britons could see their mobile bills become significantly more expensive overnight. The time to act is now to avoid being caught in this costly price hike trap.
