Virgin Media and O2 announce price hikes for broadband, TV and mobile customers: are you affected?
Virgin Media and O2 have confirmed that many of their broadband and mobile phone customers are set to see inflation-based price rises of 8.8% this spring.
The providers base their price rises on the Retail Price Index rate of inflation announced this morning (4.9%), plus an additional 3.9%.
These price rises come despite Which? calling for telecoms firms to halt plans for 'unconscionable' price rises in April, and the regulator, Ofcom, proposing a ban on inflation-linked mid-contract price rises.
However, those signing up to a Virgin Media or O2 contract from February 8 onward will not see a price rise until April 2025.
See how Virgin Media ranked in our survey of the best and worst broadband providers
How are Virgin Media and O2's prices changing this year?
These price rises will affect most Virgin Media and O2 customers who will see the amount they pay for their connections and airtime increase by 8.8%.
While most other providers use the consumer price index (CPI) as their base for price increases, adding an additional 3-3.9% on top, Virgin Media and O2 use the retail price index (RPI) measure instead, which is usually higher, plus an additional 3.9%. The Office for National Statistics has said that RPI is not a good way to measure inflation as it's likely to overstate the inflation rate.
Virgin Media and O2 argue that the price rises are necessary for investment into their networks and services.
But to add insult to injury, many affected customers already saw their bills increase last year - Virgin Media increased its broadband bills by an average of 13.8% in 2023, while O2 increased most customers' airtime bills by 17.3% last year. However, the providers will not apply their price increase to customers who have signed up or recontracted since February 8. These customers will not see a price increase until April 2025 (this should be clearly communicated by you by Virgin Media or O2). Social tariff customers will also not be impacted by these price increases.
Whether you're with Virgin Media, O2 or another provider, use our price rise calculator tool below to see how much your bills may be affected in April.
Mobile and broadband price rise calculator
Use our free tool to find out how much your broadband or mobile bill could increase in April, as a result of the confusing inflation-linked price hikes we're campaigning against.
Who is your mobile or broadband provider?
What is your current monthly payment for this service?
*If your mobile bill shows a separate cost for your airtime (data, minutes and messages), use this figure.
£
Can I leave my Virgin Media or O2 contract if my price goes up?
Unfortunately, if you're within the minimum term of your contract, you're unlikely to be able to avoid these price increases.
O2 has been using inflation-based price rises for some time, but in 2021 it began adding an extra 3.9%. These price rises are in the T&Cs of contracts - that means the only alternative to paying the higher price can often be a hefty exit fee. The price rise only affects the airtime element of O2's contracts (i.e. minutes, texts and data) - if you have a contract that includes a phone too, the cost of the device will not increase.
This will be the first time Virgin Media uses inflation-based price rises - in January 2023, it announced that it would add them into its T&Cs. However, customers whose contracts began before then are still likely to be affected. Throughout last year, Virgin Media wrote to customers to say that the terms and conditions of their contracts were being changed and offered the right to exit free of charge for 30 days after receipt of the letter. If you received that letter and are still within the minimum term of your contract, or have taken out a contract since last January, you're now unlikely to be able to avoid these price rises on your broadband deal without having to pay a fee to exit your contract.
Virgin Media and O2 have said they will write to all impacted customers to explain when and how any price rises will come into effect - if you're in that boat you will hear from them later this month or throughout March.
If you're out of contract, remember that you don't have to accept any price increase - you're free to ditch your provider and switch at any time. Use our broadband comparison service to explore new broadband deals available where you live, to see if you can find a better deal.
And, if you’re within your minimum contract term and have concerns about being able to pay your bills, speak to your provider. Virgin Media and O2 have both made commitments to support customers struggling with the cost of their service.
Mid-contract price rises are coming to an end
Following campaigning from Which?, regulator Ofcom announced it is planning to ban mid-contract price rises that are linked to inflation. Ofcom’s review of the pricing practice concluded that inflation-linked mid-contract price rise terms can cause substantial consumer harm by making it more complicated to choose a broadband or mobile deal, limiting consumer engagement in the market and reducing competition in the industry.
The regulator’s finding comes after a Which? campaign called for unpredictable mid-contract price rises to be banned, and for providers to voluntarily end the practice. We're still calling for telecoms providers to end the practice of mid-contract price rises, where broadband and mobile contracts increase in price each year by more than inflation.
Rocio Concha, Which? Director of Policy and Advocacy, said: 'This month's RPI announcement will confirm the worst fears of O2 and Virgin Media customers - who now face the biggest broadband and mobile price hikes by any major provider this April. This comes on top of up to 17 per cent increases last year - that's a huge overall increase that most people would not have anticipated when they first took out their broadband or phone deal.
'Ofcom has clearly stated the practice of above inflation price hikes inflation- linked mid contract price rises causes substantial consumer harm. It is unacceptable for telecoms firms to go ahead with above inflation price hikes this April. They must do the right thing and immediately scrap these rises, rather than cynically taking the opportunity to cash in to the detriment of their customers while they still can.'
Our graphic below shows which providers are heroes for not doing mid-contract price rises - and the zeros that plan to hike the amount you pay.
We're demanding big broadband and mobile phone providers drop hikes buried in the terms and conditions. Agree? Sign the petition.
