O2 is raising the annual rise on Pay Monthly plans, going from £1.80 to £2.50 per year. Data-only mobile broadband and smartwatch plans keep the 75p yearly bump, while out-of-bundle charges still go up by 5% every April.
O2 says social tariffs are exempt, device repayment plans remain frozen, and there is £700m earmarked for network investment, as reported by ISPreview.
Existing customers fall under the new approach as well as new and re-contracting users, with letters going out and the option to leave without penalty. You will not feel the higher amount until April 2026, when bills are refreshed for the new allowance period.
Ofcom’s updated rules mean providers now have to set out rises in pounds and pence at sign-up instead of using percentages tied to inflation. Clearer, yes, but it does not soften the blow, especially for cheaper tariffs where a flat increase bites harder.
O2 frames the £2.50 as roughly eight pence a day, but most people will judge it by next spring’s bill and overall value.
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The bottom line here is that airtime plans pick up a fixed £2.50 rise each year from now on, other bumps stay at 75p and 5%.
