MILLIONS of Vodafone customers will see their bills rise by 2.5 per cent next month after the mobile firm confirmed a mid-contract price rise.

The firm is allowed to push up prices because of a clause in its terms and conditions that warns customers about possible price increases in line with inflation.

Mobile firms are allowed to hike bills mid-contract

Vodafone uses February’s Retail Price Index to determine annual increases. Last year, it increased prices by 3.6 per cent.

It means a pay monthly customer paying £46 a month will pay £13.80 extra from April 1.

While customer on Vodafone’s most expensive contact paying £58 a month would pay £17.40 extra a year.

For the cheapest pay month contract with handset – paying £19 a month – it adds £5.70 a year to bills.

The increase only affects customers on pay month contracts taken out or after May 5 2016.

Broadband customers with a contract taken out on or after September 28 2016, including those who have upgraded, will also see bills rise.

A spokesperson said: “We can confirm that from April our charges for pay monthly contracts will increase by February’s Retail Price Index of 2.5 per cent.

“Customers will be notified over the next few days and further information can be found online here:”

Last month EE announced a 2.7 per cent rise, while o2 and Three Mobile are hiking bills by 2.5 per cent.

Virgin Mobile also confirmed that 250,000 customers would see up to £107 a year added to bills.

Sadly, customers can’t leave without paying a penalty unless they are already out the contract’s minimum term.

Mobile providers can get away with hikes as long as they notify customers at the time of purchase and in their contracts that bills can rise in line with inflation each year.

Millions are paying up to £264 extra to phone providers for mobiles they’ve already paid off – here’s how to cut your bill.


FIRSTLY, decide if you’re happy with your current deal and whether you want a new deal or handset – or both.

If you’re outside the minimum term of your contract then you can leave penalty free – and you might be able to find a cheaper deal elsewhere.

The network says the increase applies to the airtime element, which is typically £18 on a £35 a month contract.

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.

The best way to find a new deal is by checking comparison websites, such as MoneySupermarket and, which compare tariffs and handset prices.

It’s also worth trying Billmonitor, it 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.

MobilePhoneChecker 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.

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