Overview
- The flat rise takes effect on 1 April 2026 and exceeds the £1.80 a month increase many customers were shown in contracts, lifting annual costs by £30 rather than £21.60.
- O2 says it is notifying affected users and allowing penalty-free exits within the notice period, though customers still repaying devices may need to settle handset balances to leave.
- The regulator said the decision undermines the intent of its January 2025 pounds‑and‑pence rules, confirmed it does not cap price levels, and has written to major providers about treating customers fairly.
- Because the uplift is a fixed amount, lower‑cost plans face the steepest jumps, with example increases near 29% on an £8.50 SIM, while premium plans rise by about 7%.
- O2 argues the change supports network investment of about £700m this year, says social tariffs are exempt and handset repayments remain frozen, and reports the policy could affect roughly 15 to 15.6 million customers.