mid contract price hike 2024
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Mid Contract Price Rises 2024 – What you Need to Know

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As we step further into 2024, UK mobile users are bracing for pricing changes in Monthly and 12-month Plans. This adjustment is linked to the annual recalibration of the Consumer Price Index (CPI) and Retail Price Index (RPI). These shifts are reflective of ongoing inflationary measures within the telecommunications sector. 

The frequency of these adjustments aligns with the yearly cycle, occurring once annually, with pricing changes closely linked to the CPI and RPI. These modifications highlight the telecom sector’s adaptability to economic fluctuations. 

Amidst mid-contract price changes, users are scrutinizing their options. If services or initially agreed-upon terms are significantly impacted, users can opt out, especially when there’s a substantial increase to the core subscription price set at the time of purchase. 

In parallel, the broadband sector is experiencing similar shifts. While some providers allow cancellations, others have restrictions, underscoring the need for consumers to carefully review terms and conditions. 

Within this landscape, certain mobile service providers such as Talk Home Mobile are noteworthy for not increasing prices in 2024, providing stability for consumers. 

  • Anticipated price hike in the UK mobile plans and understand how it aligns with the annual recalibration of CPI and RPI. 
  • Options available to consumers during mid-contract price adjustments and the criteria for opting out if services or agreed-upon terms are significantly impacted. 
  • Changes in the broadband sector in 2024, including providers implementing price adjustments and the varying cancellation policies, highlighting the importance of reviewing terms and conditions. 

By April 2024, the mid-contract price hike will hit the telecom sector. According to a report, an increase of 17% is expected in the bills of most service providers within the United Kingdom. After this increase, mobile bills will be amongst the top factors compromising the affordability of people living within the United Kingdom.

So, what is a mid-contract price rise, and what amount of money will be drained out of your pockets within a couple of months? Along with an answer to this question, we have key insights in the blog to help you avoid this price hike.

Let’s get straight into without a further ado.  

Mid Contract Price Hike

What is Consumer Price Index & Why You Should Worry?

The Consumer Price index is employed in the UK as the primary indicator of inflation over a particular period. The Office for National Statistics is responsible for publishing the CPI. It calculates the average monthly change in prices for most UK households’ purchases of goods and services.

The CPI serves as the government’s foundation for setting its inflation target and for increasing state pensions and other benefits. With the UK CPI index rising significantly this year, Brits are actively looking out for cheaper alternatives.

Simply said, the inflations will have a dire result on your living standards, and you’d want great-value options to tackle it.

What is a Mid-Contract Price Hike?

A mid-contract price hike means that your network provider will increase the price during the term of the contract. This means that if you’ve signed a contract with your current network provider, you’ll experience a staunch increase in the price.
The latest data reveals that various mobile network operators across the UK are all set to increase the monthly price of their SIM-only and PAYG plans by over 17%. The increase is a dire result of:

  • Consumer Price Index: 7.3% in January 2024.
  • Retail Price Index: 8.6% in January 2024.

The data reveals that inflation is at an all-time high in the UK. And it is becoming increasingly difficult for network operators to offer cheap deals to consumers. Several service providers also increase their prices by a fixed amount of roughly 3% each year to combat rising business expenses and ensure they can cover them.

Since the CPI rate is so high at 10.5%, price hikes for mobile contracts in 2024 will be far larger than usual. And to make matters worse, the RPI rate, which some cell networks use to determine pricing hikes, is now 13.4%, which is even higher.

Average Data Usage in the UK

In the recent past, data usage in the United Kingdom increased by 143%. The average mobile user consumed 2.3GB per month in 2021, this usage increased to 5.6 GB per month in 2022. The primary factor that led to this surge is the ever-increasing streaming and video platforms.

According to a report, the cost of 1Gb data in the United Kingdom is £0.65, making it £3.64/month for an average internet user. With the mid-contract price hikes, the monthly cost is likely to go up by £4.25.

Though it sounds too small of a thing, the impact is going to be huge, since 98% of the UK’s population is active internet users.

Data Usage - mid contract price hike

When will my Mobile Network Prices Go Up?

By April 2024!

Providers of mobile services typically announce price increases several weeks in advance of when they go into effect.

Your provider should have informed you of any prospective price increases for 2024 in January or February.

It may be more advantageous to switch to a less expensive internet plan now if your contract is about to expire or even if it does so in a few months. Although you’ll probably have to pay some departure costs, if the cost of your next package is low enough on a monthly basis, you might pay less altogether.

How Often are Network Prices Increased? 

Network prices undergo adjustments in their SIM Plans annually. These changes tend to happen only once a year. The increase in price modulation is tied closely to the CPI and RPI. Mobile Network providers often incorporate these prices into their pricing structures, alongside the predetermined increments they set up for themselves. 

Considering inflation rates, the frequency and magnitude of these changes range between 6% to 8%. The telecommunication sector across the UK content to these changes as a result of changes posed by the ongoing inflation. 

Here’s a time of broadband mid-contract prices rises:

mid contract price rises timeline

How a Mid Contract Price Rises will Impact me this year? 

Here’s a comprehensive table to analyze how the price rises will impact you this year:

Network Provider Current Price Mobile Data Plan Type Mid Contract Price Rises Estimated Increase       Price after Hike
EE £28.00 125GB Monthly 7.90% £2.21 £30.21
£18.00 2GB Monthly 7.90% £1.42 £19.42
£33.00 125GB 12-Month 7.90% £2.61 £35.61
£16.00 2GB 12-Month 7.90% £1.26 £17.26
BT Mobile £16.00 2GB 12-Month 7.90% £1.26 £17.26
Vodafone £25.00 2GB Monthly 7.90% £1.98 £26.98
£44.00 Unlimited Monthly 7.90% £3.48 £47.48
£24.00 20GB 12-Month 7.90% £1.90 £25.90
£15.00 2GB 12-Month 7.90% £1.19 £16.19
Three £30.00 Unlimited 24-Month 7.90% £2.37 £32.37
£35.00 Unlimited 24-Month 7.90% £2.77 £37.77
Talk Mobile £6.95 6GB 12-Month 7.70% £0.54 £7.49
£32.00 Unlimited 12-Month 7.70% £2.46 £34.46
£6.95 6GB Monthly 7.70%  £0.54 £7.49
£12.95 100GB Monthly 7.70% £1.00 £13.95
£6.95 6GB Monthly 7.70% £0.54 £7.49
Virgin Media £20.00 1GB Monthly 7.90% £1.58 £21.58
£30.00 50GB Monthly 7.90% £2.37 £32.37
£13.00 1GB 12-Month 7.90% £1.03 £14.03
£22.99 60GB 12-Month 7.90% £1.82 £24.81
Sky Mobile £5.00 100MB 24-Month 7.90% £0.40 £5.40
£16.00 25GB 24-Month 7.90% £1.26 £17.26

What Options do I have to Escape the Mid-Contract Price Rises this 2024? 

Under the Ofcom rules and regulations, you have the option to escape mid-contract price rises in 2024 if you can prove the “material detriment”. This means if the price hike has significantly impacted your service or the term of your agreement, you can leave your current mobile network provider. 

According to OFCOM rules, if you’re “Likely to treat in-term increases to the core subscription price agreed at the point of sale as meeting this material detriment requirement and giving rise to the right of withdrawal”. 

So, make sure to contact your network provider and clearly communicate your intention to leave based on the Ofcom regulations regarding mid-contract price rises. 

Broadband Opting to Mid Contract Price Rises in 2024 

See how much your provider might raise your fees this year in the table below. Moreover, find out which ones, if you switch to them in March 2024, won’t raise your charges in April.

Broadband provider  2024 Mid Contract Price Rise Cancellation Policy
BT  7.9% (CPI rate + 3.9%) Cannot cancel for free (T&Cs Applied) 
TalkTalk  7.7 % (CPI rate + 3.7%) Cannot cancel for free (T&Cs Applied)
EE 7.9% (CPI rate + 3.9%) Cannot cancel for free (T&Cs Applied)
Plusnet  7.9% (CPI rate + 3.9%) Cannot cancel for free (T&Cs Applied)
Three  7.9% (CPI rate + 3.9%) Cannot cancel for free (T&Cs Applied)
Cuckoo  No set annual price rise figure (price rise still likely) Cancel/switch contract within 30 days 
Direct Save Telecom  No set annual price rise figure (price rise still likely) Cancel/switch contract within 30 days 
Fiber Zone  No set annual price rise figure (price rise still likely) Out of contract customers can switch 
Sky  No set annual price rise figure (price rise still likely) Cancel/switch contract within 30 days 
Gigaclear  No set annual price rise figure (price rise still likely) Cancel/switch contract within 30 days 
Community Fibre  6.9% (CPI rate + 2.9%) Cannot cancel for free (T&Cs Applied)
NOW Broadband  No set annual price rise figure (price rise still likely) Cancel/switch contract within 30 days 
Virgin Media  RPI rate + 3.9% (figure announced in February) Cannot cancel for free (T&Cs Applied)
Shell Energy Broadband  7% (CPI rate + 3%) Some customers can cancel – check letter from provider 
Onestream  9.1% (RPI rate + 3.9%) Cannot cancel for free (T&Cs Applied)
Vodafone  7.9% (CPI rate + 3.9%) Cannot cancel for free (T&Cs Applied)
KCOM  7.9% (CPI rate + 3.9%)  Depends on availability – check with your provider 

How Much Could my Mobile Bill go up in 2024?

Here’s the latest update about how much your mobile bill could go up by April 2024.

Talk Home Mobile Mid-Contract Price Hike

No Price Hike!
Yes, you heard that right. Talk Home Mobile, operates on EE’s network and has not had a price rise on UK plans since 2012 and there appears to be no intention to change that in the near future despite everyone else pushing up their prices. Their affordable PAYG and SIM-only deals are without contracts so you only pay for what you use and have no commitments.

For those watching their pennies or those fed up with constant annual price rises or in fact any increase, this sounds like the kind of network you want to be looking into.

TalkMobile Mid-Contract Price Hike

Talkmobile customers are getting hit by mid-contract price hikes too. If your contract began after March 2021, you would pay 14% more in your mobile bills starting from April 1st.

Meaning that if you were paying £7 for 3GB of data, you’d now pay £ 7.98 for the very same plan. The cost of the internet in the United Kingdom is already higher, compared to other countries. Putting this additional burden of 14% in your pocket, especially in times of inflation, would have a major impact on your budget.

Tesco Mobile Mid-Contract Price Rise

Tesco customers whose contract ended before 1st Feb 23 can expect a 14.4% increase in their monthly phone bills. This increase reflects CPI surge (10.5%), plus an additional 3.9%.

Currently, the 30GB monthly plan of Tesco mobile costs you around £12.50. After the mid-contract price hike, you will be paying £14.3 for the same data -meaning an additional £21.6 YoY.

ID Mobile Mid-Contract Price Rise

By April 23, ID mobile customers will pay a surcharge of 14.4% on their current mobile plans. If you are amongst the customers who bought the service provider’s plan after November 2022, you are to be hit by the increased prices.

For the current prices, the contract for unlimited data costs you around £18. With the mid-contract price rise, you would pay £20.6 for the same services. Yearly, the difference in price goes up by £31.2.

Three Mid-Contract Price Hike

Three will calculate its price hikes using the December CPI rate, which was 10.5% plus 3.9%. This indicates that many of their clients will see a 14.4% rise.

EE Mid-Contract Price Rise

EE calculates rates using the December CPI rate which was released in January. The CPI rate for December 2022 was 10.5%. As a result, many EE customers will experience a price rise of 14.4% (i.e., 10.5% plus 3.9%), or an average increase of slightly over £1 per week.

These price adjustments go into effect on or after March 31, 2024.

Vodafone Mid-Contract Price Hike

Vodafone has announced an increase of 14% in its prices by April 2024.

Customers who had a contract before December 2022, are to face an increase based on the retail price index (RPI), which is 13.4% for the United Kingdom.

However, the customers who started the contract before Sep 2016 are to pay an additional amount on the customer price index (CPI) of 10.5 %, plus an additional 3.9% -making up 14.4% in total.

The service provider has strategically divided these stats to retain their loyal customers. Regardless of when your contract started, you will be paying the additional amount of up to 14%, starting from April 1st, 2024.

O2 Mid-contract Price Hike

The o2 mobile will increase its prices by 3.9% in addition to the RPI rate of inflation. This modification will start appearing on your bills in April 2024.

Can I Leave My Contract if My Prices Go Up?

It totally depends!
One of the major setbacks of a contract mobile phone is that you’re bound by your provider. This means the existing provider’s terms and conditions that you accepted when you signed up will determine this and you cannot cancel the contract in few days.

A fixed contract for service typically indicates that you’ve agreed to pay a specific amount each month for a predetermined period. Both you and your provider agree to be charged the same amount each month, and you both agree to pay it on the designated day.

But, in order to utilize a provider’s services, you must agree to their terms and conditions (T&Cs) when you sign up for a mobile phone contract.

Unless you agree to these conditions, you won’t be able to sign up for a service provided by your provider. To avoid such a situation, you’ll need to look for a provider that doesn’t raise prices annually, but these companies are hard to come by.

In essence, if you continue to sign up for a service that does include price hikes in its T&Cs, you will have formally agreed to pay the higher price when it is charged.

Given that these terms are frequently tucked away among a tone of content that most people never read, this might seem unjust. But, if this worries you before signing up with a new provider, it’s crucial to particularly look for any mention of price increases in the T&Cs.

Which Mobile Providers are Not Raising the Price in 2024? 

  • Talk Home Mobile 
  • Now Mobile 
  • Giffgaff 
  • Lyca Mobile 
  • Lebara Mobile  
  • Asda Mobile 
  • Smarty 
  • VOXi 

These networks have been named among the list of mobile providers who won’t be hiking up their prices this year. 

Talk Home Mobile Announces Fixed UK Prices 2024

In the face of rising inflation, Talk Home Mobile has announced to assist its clients in times of recession. For 2024, the business sets fixed prices on its SIM-only and PAYG plans. Moreover, the company is offering no-contract SIM deals. This means you pay as you desire. Furthermore, the initiative is taken to help the masses connect without breaking the bank.

The rates are not just fixed in the year 2024 but they have not changed few years too. With millions are customers being affected by the recent price hike, Talk Home Mobile is the best alternative since they can browse, stream, download, and connect non-stop without worrying. Switch to Talk Home Mobile and connect limitlessly.


Ofcom’s Ruling about Mid-Contract Price Hike

Ofcom established new regulations for broadband and mobile companies to explain more clearly the price increases they should expect after coming under increasing customer pressure.

Earlier, information about price increases was frequently just tucked away in the terms and conditions, making it simple to overlook them among all the other details. Before you purchase the service, providers must now also present a brief, understandable, and comprehensive description of all the contract’s terms.

This means that before giving your bank information, you can see all the parameters of your plan in one location, including the contract period, and monthly pricing.

But it also makes it obvious whether and by how much the supplier will raise your charges during the term of the contract. For instance, many suppliers set a minimum price rise of about 3% plus the inflation rate when the year starts. Thus, bear this in mind before signing a new contract for broadband or mobile.

Yet, this still means that service providers are unable to give you a precise estimate of the amount they anticipate charging you after the next price increase, expressed in pounds and pence.

Final words

Unfortunately, the economic downturn has also led to a rise in unemployment, leaving many families struggling to make ends meet. As a result, people have had to tighten their belts, cutting back on luxury items and re-evaluating their spending habits.

The financial strain has been felt across the country, and many are calling for urgent action to be taken to alleviate the burden on ordinary citizens. The government has been under pressure to provide targeted support to those most in need, but the road to recovery is long and uncertain.

The people of the UK are living through challenging times, but they are also a resilient bunch. They know that with perseverance and a willingness to adapt, they can weather the storm and come out stronger on the other side. A united effort by the telecom industry is needed in order to provide cheap data.

The initiative taken by Talk Home Mobile is promising and is a benchmark for other networks. With the growing increase in the use of the Internet, it is necessary for companies to follow the same model and provide cheap communication for all.

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