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Mobile phone customers set for price hikes – can I cancel my contract?

EE, O2, Three and Vodafone will all hike prices in line with rising inflation

Millions of people with pay-monthly phone contracts will see their bills sneak up by up to 4.1% as the country’s biggest mobile networks match inflation.

This will mean customers on a £29.99 a month contract will see prices hike by up to £1.20 a month or £14.40 a year.

EE, O2, Three and Vodafone have all said the increases are in line with the Retail Prices Index (RPI), which was set at 4% in January.

  • EE will raise prices by 4.1% in March
  • 02 will raise prices by 4% in April
  • Three will raise prices by 4% in May
  • Vodafone will raise its prices in April based on the March RPI figure.

Pay-as-you-go customers will be unaffected.

Can I cancel my contract because of these increases?

Unfortunately, probably not; mobile phone companies can increase prices mid-contract to keep them inline with inflation as long as they warned you about it in the terms and conditions when you signed up. This means it’s unlikely you’ll be able to leave penalty free.

But if your mobile phone provider increases to your monthly price by more than the RPI, you are able to exit the contract if you’re still within your minimum term without incurring a penalty fee.

If you’re looking to leave a contract early, see our guide to cancel a phone contract.

What if I’m out of contract?

If you’re out of contract, you won’t have to pay a penalty if you decide to cancel and take on a different contract.

Many of us are reluctant to haggle when agreeing a new phone contract. But we shouldn’t be – it can often get you a better deal. Follow our top tips to save money on your mobile phone contract.

What is RPI?

Each month the government announces the RPI, also known as the headline rate of inflation, which measures the change in the cost of a sample of retail goods and services compared with that month last year.

The latest RPI figures are available on the Office for National Statistics website. In January, it was measured at 4% after dropping from 4.1% in December.

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