Consumer champion Martin Lewis has issued an urgent warning to O2 customers following the mobile giant's announcement of brutal price hikes set to take effect this spring. The Money Saving Expert founder is advising customers to consider leaving the network now to avoid being trapped in contracts with soaring costs.
The Shocking Numbers Behind O2's Price Increase
O2 has confirmed it will implement a massive 17.3% price increase for millions of customers starting April 2024. This inflation-busting hike far exceeds the current Retail Price Index (RPI) rate and will add significant sums to household bills during an ongoing cost of living crisis.
For customers on typical contracts, this could mean:
- An extra £40-£60 annually for single-line users
- Over £100 in additional costs for families with multiple contracts
- Substantial increases for both new and existing customers
Martin Lewis's Urgent Advice
The financial expert emphasised that customers currently within their minimum contract term have a crucial window of opportunity. "If you're in your minimum contract and they put your prices up, you can leave penalty-free," Lewis stated, highlighting a key consumer right that many are unaware of.
He strongly recommends that affected customers should:
- Check their contract status immediately to determine if they're within or beyond their minimum term
- Review alternative providers offering more competitive rates
- Act before the April deadline to avoid being locked into higher payments
Why This Price Hike Is Particularly Painful
This isn't the first time O2 has implemented significant price increases, but the 17.3% jump represents one of the most substantial hikes in recent memory. With many households already struggling with rising energy, food, and housing costs, the additional mobile expense could push some families to breaking point.
Consumer groups have expressed outrage at the timing and scale of the increase, noting that wages and benefits are failing to keep pace with such dramatic price surges in essential services.
What O2 Customers Should Do Next
Martin Lewis's advice is clear: don't wait until the higher prices hit your bill. Now is the time to shop around, compare deals from other providers, and make an informed decision about whether to stay with O2 or switch to a more affordable alternative.
Customers should also be aware that other major providers often implement similar spring price increases, making early action even more critical for those wanting to avoid the annual price hike cycle.
