Virgin Media and O2 announce price hikes for broadband, TV and mobile customers: are you affected?

Virgin Media and O2 have confirmed their new pricing structure for broadband and mobile customers, in clear pounds and pence terms. 

Following campaigning from Which?, telecoms regulator Ofcom has banned broadband and mobile providers from using inflation rates and percentages to calculate mid-contract price increases.

Find out how much your contract will increase by, and whether you can exit early. 

See how Virgin Media ranked in our survey of the best and worst broadband providers, or how O2 compares to the best and worst UK mobile networks.

How are Virgin Media's broadband prices changing?

Until now, Virgin Media has calculated annual mid-contract price increases by taking the Retail Price Index (RPI) measure of inflation and adding an extra 3.9%. Previous price rises have been as high as 13.8%.

The newly announced pricing structure means that from January 2025, new and re-contracting Virgin Media broadband customers will see their payments increase by £3.50 a month each April. Customers on social tariffs will be exempt from these increases.

If you're out of contract, remember that you don't have to accept any price increase - you're free to ditch your provider and switch at any time. Use our broadband comparison service to explore new broadband deals available where you live, to see if you can find a better deal.

How are O2's mobile prices changing?

O2 has also used RPI plus 3.9% to calculate its annual price increases. This resulted in customers being hit by yearly increases as high as 17.3%. 

The changes to the pricing structure means that from January 2025, new and re-contracting O2 mobile customers will see their payments increase by £1.80 a month each April.

This only affects the airtime (data, calls, texts) part of the contract, and not the handset payments. Customers on social tariffs will not be impacted by these increases. 

Concerned about rising prices? Find out 10 ways to save money on your mobile phone bill.

Can I leave my Virgin or O2 contracts early? 

If existing customers are moved to the new pricing structure before their contract ends, they are likely to be given the option to exit penalty-free within 30 days. This is a regulatory requirement when a contract is modified in a way that isn't exclusively to benefit the consumer. 

However, if existing Virgin Media and O2 customer contracts are left as they are, and the new price increases are only introduced for new and re-contracting customers, then early exit fees will apply as usual.

If you’re within your minimum contract term and have concerns about being able to pay your bills, speak to your provider. Virgin Media and O2 have both made commitments to support customers struggling with the cost of their service.

Mid-contract price rises coming to an end

Following campaigning from Which?, regulator Ofcom decided to ban mid-contract price rises that are linked to inflation. 

Ofcom’s review of the pricing practice concluded that inflation-linked mid-contract price rise terms can cause substantial consumer harm by making it more complicated to choose a broadband or mobile deal, limiting consumer engagement in the market and reducing competition in the industry. 

From 17 January 2025, broadband and mobile providers must clearly state mid-contract price increases in pounds and pence, without using inflation figures or percentages. 

The regulator’s finding comes after a Which? campaign called for unpredictable mid-contract price rises to be banned, and for providers to voluntarily end the practice.

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