Dr Luke Evans, Member of Parliament for Hinckley and Bosworth, has called on the Government to debate the issue of mid contract phone rises, as it transpires that phone companies are “finding new ways round” Ofcom’s prohibition of mid-contract prices.
The local MP had successfully lobbied Ofcom for changes to rules around mid-contract price rises, which saw mobile phone and broadband providers increase annual contracts by the rate of inflation, plus 3.9% - leading to double digit percentage points rises in bills.
Following sustained concerns about the practice, Ofcom announced that new rules coming in from January 2025 would “prohibit providers from including inflation-linked or percentage-based price rise terms in new contracts.”
Dr Evans’s question followed reports that O2 will sidestep Ofcom’s new rules after the provider announced that, in April 2026, those who are mid-contract will face a higher price rise than that which was stated in their contract. The original £1.80 a month rise will now be 40% more at £2.50 a month, a total of £30 over the year.
Martin Lewis, Founder of MoneySavingExpert.com, said O2's announcement “feels to me a bit like it makes a mockery of Ofcom's new 'pounds and pence' consumer protection regime, which came in at the start of this year.
“All this,” he continues, “adds more inflationary pressure to the economy in its own right.”
Since his election in 2019, Dr Evans has written to mobile phone providers, Ofcom and asked questions in Parliament about the “willingness of providers to minimise the impact of recent cost increases on consumers.”
Speaking in the Commons for questions to the Leader of the House of Commons, Dr Evans said “Could we have a debate in Government time on mid-contract mobile phone bill increases, which is a concern I have been raising for a long time?
“I was pleased to welcome Ofcom’s changes at the start of the year, but it seems that companies such as O2 are finding new ways around them and increasing bills by 40%. That is shocking when done mid-contract, as customers are not aware of the increases.
“People can cancel their contracts but are not aware of the problem. A debate would allow us to make the public aware that this is going on and look for solutions.”
Sir Alan Campbell, Leader of the House of Commons, responded “As ever, the Member for Hinckley and Bosworth raises pertinent issues on behalf of many of our constituents. A Backbench Business or Adjournment debate would allow Members to air those concerns, which I will also draw to the attention of the relevant Department.”
Afterwards, Dr Luke Evans MP added “For the past few years, I have been calling for Ofcom to challenge mobile phone and broadband providers for automatically increasing annual contracts by the rate of inflation, plus 3.9%.
“This has meant, following periods of high inflation after the pandemic, that prices have risen by as much as 15% in one year. I was really pleased to see Ofcom take this seriously and prohibit providers from including inflation-linked, or percentage-based, price rises in new contracts.
"Yet, this new attempt by companies is frankly taking the mickey.
“I’ve asked for a Parliamentary debate on this, to bring attention to the issue, and will be following up with Ministers and Ofcom to ensure providers follow the rules.”
Customers who joined O2 before 23 October 2025 (when the provider announced the new price rises) will have a contract which includes provision for a £1.80 a month price rise each April – not £2.50. O2 states it will be writing to customers to notify them of the change.
Anyone not happy with the higher price rise is entitled, under Ofcom's rules, to leave their contract penalty-free within 30 days of O2 notifying them of the change.
