Vodafone customers to face bigger hike to phone bills next year, bosses warn
Vodafone customers may face an even bigger increase in their phone bills next year, adding further pressure to budgets amid the cost of living crisis.
The price hike comes after other phone networks, such as Vodaphone, EE, O2, BT, TalkTalk and Plusnet, have already raised prices this year.
Customer contract prices have soared by 9%, which Vodafone chief executive Nick Read said was the equivalent of “between £1 and £2 extra” a month for users.
Many telecom companies use the consumer price index (CPI) rate of inflation, and Vodafone added 3.8% increase on top to decide the level of this year’s annual price increase.
The CPI was at 5.1% in January 2022, which influenced Vodafone’s 9% increase.
However, according to last month’s official figures, Russia’s invasion of Ukraine has spiked inflation to 9.4%.
If inflation remains at the same level, Vodafone customers could face up to a 13.2% increase, bosses have warned.
When did Vodafone last increase its prices?
Millions of Vodafone customers saw their bills rise by 8.2% from 1 April 2022.
Customers of O2, Three, and Virgin Mobile saw increases of up to 11.7%.
If you are out of contract and rolled on to a pricer tariff without signing up, you can leave at any point and this will often be penalty-free.
However, if you are in contract and signed up for a new tariff within the last two years, the price rise is likely part of that contract and you most likely won’t be able to cancel penalty-free.