Virgin Media O2 bill rises on mobile and broadband contracts slammed as 'hard to justify'

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Broadband and mobile phone price hikes by Virgin Media O2 have been dubbed 'hard to justify' by consumer experts.

Virgin Media broadband customers will see bills rise by £3.50 a month from April 2025, with the prices applying to deals from January 2025.

O2 mobile phone customers will see airtime bills rise by £1.80 from the same point, with mobile broadband and smart watch customers paying an extra 75p. There is no increase for pay-as-you-go customers.

This broadband price increase is the highest in the UK, while the mobile phone bill rise is the joint-highest.

Adding up: The latest broadband and mobile phone bill increases join a slew of other high costs tightening the pressure on consumer wallets, from energy bills to groceries

The next most-expensive broadband price hike is £3, from EE and Plusnet, while for mobile Vodafone is also charging £1.80 extra next year.

In July 2024, regulator Ofcom banned inflation-linked price rises from 17 January 2025, arguing that these caught many customers unaware.

Instead, phone and broadband firms have to display mid-term price rises in pounds and pence in a prominent way.

But while Ofcom laid out rules about how prices rises were to happen, it did not put in any requirements about limiting these.

A Virgin Media O2 spokesperson defended the price increases by saying they were clear to understand and good value for money.

The 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.

'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 £5million a day in our networks and services to give our customers the fast and reliable connectivity they increasingly rely on.'

But comparison firm Uswitch has hit out at the price hikes, calling them 'hard to justify'.

Ernest Doku, telecoms expert at Uswitch, said: 'Virgin Media O2 has just announced the steepest broadband price rises we've seen of all providers so far - £3.50 for all broadband customers and £1.80 a month for mobile customers.

'While Virgin Media O2 references investment and growing demand for data as reasons behind its price rises, with inflation falling significantly since last April, this decision still seems hard to justify. 

'These new increases suggest Virgin Media O2 is taking the Ofcom rule change as an opportunity to make price rises higher than they otherwise would have been from 2025.

'The new flat-rate increases mean that from January 2025, new or re-contracting Virgin Media customers taking a cheaper broadband package at £25 a month would see a price increase of 14 per cent each year. Customers on a mobile deal at £15 a month would see an increase of 12 per cent annually.'

Find the fastest and cheapest broadband - and see if you can save

Broadband, TV and phone contracts are notoriously sticky, with customers often allowing deals to run on for many years while providers raise prices.

But it may be possible for you to get faster broadband, a better TV package and an improved phone deal, while saving money each month.

It is always worth comparing prices to see if you can save - particularly as the cost of living crisis bites. 

This is Money has partnered with Broadband Choices to offer readers the chance to easily search for the best and cheapest deals for their broadband, mobile and TV. 

> Can you save? Compare broadband, TV and phone deals