Virgin Media O2 reveals exact amount bills will rise for millions of customers
VIRGIN Media O2 has announced the exact increase customers will see on their bills next year as new rules come into place.
Numerous phone and broadband providers have been forced to change the way they warn customers of changes to their bills.
It comes as new Ofcom rules aim to simplify mid-contract price increases.
Previously, increases were expressed to users as a percentage linked to inflation.
Now, though, they will be displayed in pounds and pence so Brits know exactly what they are facing and can compare rates.
Plus, increases will have to be set out at the time that you sign up for the deal and can’t be sprung on you suddenly.
The new rules will come into effect on January 17, 2025.
Virgin Media customers will see an increase of £3.50 a month to their bills while O2 users will see airtime increase to £1.80 a month, the company has confirmed.
A Virgin Media O2 spokesperson said: “From January, we’ll change how we communicate and implement price increases.
“All future price changes will be included in customers’ contracts in pounds and pence, giving them even more certainty about how their bills may change over the course of their contract.
“For new and re-contracting Virgin Media customers, this will be a flat increase of £3.50 a month, effective each April, while airtime price increases for O2 customers will be £1.80 a month, with device payment amounts remaining frozen.
“At less than the cost of a takeaway coffee or a sandwich, this represents excellent value for connectivity that our customers are using more than ever before, at the same time as we invest more than £5 million a day in our networks and services to give our customers the fast and reliable connectivity they increasingly rely on.”
Under the percentage-based approach, many major phone, broadband, and pay-TV companies linked their prices to future inflation rates.
This saw millions of customers face hikes of up to 8.8% this year – adding as much as £50 to bills.
That “unfairly” puts the burden of shouldering inflation costs onto customers, Ofcom said.
It said that people “cannot predict” inflation and “do not understand [it] well.”
How to save on your mobile phone bill
NOT happy with your current mobile phone deal?
If you’re outside the minimum term of your contract then you won’t need to pay a cancellation fee – and you might be able to find a cheaper deal elsewhere.
But don’t just switch contracts because the price is cheaper than what you’re currently paying.
Take a look at how many minutes and texts, as well as how much data you’re using, to find out which deal is best for you.
For example, if you’re a heavy internet user it’s worth finding a deal that accommodates this so you don’t end up spending extra on bundles or add-ons each month.
Also note that if you’re still in your contract period, you might be charged an exit fee.
Ready to look elsewhere? Pay-as-you-go deals are better for people who don’t regularly use their phone, while monthly contracts usually work out cheaper for those who do.
It’s worth using comparison websites, such as MoneySupermarket and uSwitch.com, to compare tariffs and phone prices.
Billmonitor also matches buyers to the best pay-monthly deal based on their previous three months of bills.
It only works if you’re a customer of EE, O2, Three, Vodafone or Tesco Mobile and you’ll need to log in with your online account details.
There’s also MobilePhoneChecker, which has a bill monitoring feature that recommends a tariff based on your monthly usage.
If you’re happy with your provider then it might be worth using your research to haggle a better deal.
“We have decided to ban this practice,” the regulator said.
Richard Neudegg, director of regulation at Uswitch, said: “Finally, broadband and mobile customers will know ahead of time exactly what they will pay for the duration of a contract, making it easier for them to properly manage their finances.
“This change will allow people to make informed choices at the start of their deal instead of being at the mercy of future inflation rates that are impossible to know in advance.”
What about other providers?
After Virgin Media O2 has announced what increases customers can expect, here is what other mobile and broadband providers are doing:
Plusnet will apply a flat rate charge for all broadband customers, increasing by £3 a month each year on March 31.
EE Mobile deals will increase by £1.50 a month, for TV customers this will be £2 a month, and for broadband users it will be £3 a month.
Vodafone will add £1 a month for phone coverage and implement a rise of £3 a month for broadband.
However, existing customers will not see an immediate change as it will only affect new customers or those renewing a contract with the telecom provider.
Vodafone customers who signed up for a mobile or broadband package before July 2 will still face inflation-linked price rises each April until they switch or change deal.
This means these customers’ prices will rise by whatever December’s inflation figure is plus 3%.