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O2 Raises Mid-Contract Airtime Charge to £2.50 as Martin Lewis Warns Over Confusing Exit Bills

Officials and campaigners are urging clearer rules after customers reported four‑figure cancellation quotes despite a right to leave within 30 days without paying off handsets upfront.

Overview

  • O2 confirmed it is lifting the stated monthly mid-contract increase from £1.80 to £2.50 and has notified customers with a penalty-free 30‑day window to cancel under Ofcom rules.
  • Some customers who tried to leave were quoted the full remaining device balance and other fees, including one reported text demanding £2,347.46 to exit on 5 November.
  • Martin Lewis said O2’s messaging is misleading and clarified that customers can switch their SIM to another provider while continuing monthly handset repayments instead of paying a lump sum.
  • O2 said it has been transparent and is acting within regulations, describing the rise as equivalent to 8p per day and noting £700m a year invested in its mobile network.
  • Labour’s technology secretary asked Ofcom to review in‑contract price rises, Ofcom expressed concern about fair treatment, and Citizens Advice urged a ban on mid‑contract increases.