Mobile Phone Bills to Rise by up to 7% This Month – Here’s What You Can Do

Monthly and SIM-only contracts will rise for millions of customers starting March 31, 2026.

While older contracts still rise by inflation plus 3.9%, new Ofcom rules mean customers who joined after January 2025 will see clear 'pounds and pence' increases instead.

Based on the December 2025 inflation figure of 3.1%, customers on older legacy contracts will see bills rise by 7.0% (3.1% inflation + 3.9% set by the provider).

EE contract price rise

For EE contracts agreed before April 10, 2024, prices will rise by 7.0% in 2026.

For those on newer contracts, EE has maintained its flat-fee structure for the new year: SIM-only customers will be charged £1.50 per month more from March 31 (£18 a year), while those with a handset contract face a £4 a month price rise (£48 a year).

Vodafone contract price rise

For Vodafone plans starting after July 2, 2024, customers will see a flat-fee increase of £1.80 per month (£1 for Basics plans) in April 2026.

However, legacy contracts signed between December 2020 and July 2024 remain linked to inflation and will see a 7.0% rise. For example, a customer paying £40 a month on an older plan will see their bill increase by £2.80 starting March 31.

Three contract price rise

Three applies a fixed-rate increase for customers who joined or upgraded on or after September 8, 2024.

For customers on older legacy contracts, bills will increase by 7.0% in April 2026, calculated from the December 2025 CPI rate plus the standard 3.9%.

O2 contract price rise

O2 continues to lead the move away from inflation-linked hikes.

For the April 2026 cycle, all customers will see a flat £1.80 monthly rise applied to the airtime part of their bill. This transparent pricing ensures customers know exactly how much their bill will increase regardless of economic fluctuations.

How to save money on your phone bill

To avoid inflation-busting price rises, it's possible to check how much you need to pay to exit a phone contract early. Text 'INFO' to 85075 for free to find out. If you know roughly how much you pay each month you can use this to calculate how long you have left in your contract. Alternatively you can check by logging into your account.

If the early exit fee is quite high it may be worth holding tight until closer to the end of your contract. Even some SIM-only deals lock customers in for a set period, so it's worth looking before jumping to a cheaper deal.

Using a comparison site is the best way to see all the deals available. We’ve partnered with Uswitch to help you choose the best mobile phone plan for contract or SIM-only.

Switching providers while keeping the same phone number is simple and can be done without assistance. Text PAC to 65075 on your current phone to start the process, with text messages guiding you step by step.

Small providers use the signal from one of EE, O2, Vodafone or Three so if you’re wanting to stick to one of the big four, it could be worth investigating a smaller company to see whose signal they piggyback onto. USwitch shows this information when you click into a deal on its website.

It can also be advantageous to haggle with your provider.

Start comparing new contracts on the market a month before yours ends so you can find cheaper deals to put to your current provider. They may offer you a better price or additional perks (just make sure the perks are something you’d use). If they don’t, say you’d like to leave and the dedicated retention team may offer you something better. We’ve partnered with Uswitch to offer a comparison service to our readers, which you can use by clicking the box below.

Cheap broadband: Social tariff

A little-known discount on broadband and landline phone packages called a social tariff is available for people claiming a number of benefits. Customers could save more than £200 by switching.

Those claiming Universal Credit, Pension Credit and some other benefits are eligible for the discounted social tariff.

As standard broadband prices have risen, the value of social tariffs has increased. In 2026, BT customers can save £284.40 a year by switching from a standard 'Fibre 1' package to the 'Home Essentials' social tariff—a saving of £23.70 a month.

Vodafone customers currently save £192 a year (or £16 a month) by utilizing their social broadband offering compared to standard mid-contract rates.

For more information on social tariffs, click here.

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