Martin Lewis issues warning to O2 customers hit with huge bills for leaving

Martin Lewis has issued a warning to O2 customers after they were hit with huge bills for trying to leave the network following its mid-contract price rise. Money Saving Expert founder Martin has warned that the mobile network has been asking customers to pay off their devices in full when they try to leave, following its announcement that it is increasing prices mid-contract, despite customers having the right to cancel following the hike.

After new Ofcom rules came into place in January, mobile networks have been banned from raising prices based on inflation-linked percentages during contracts, and instead must set out in pounds and pence figures how much a bill will be increased, and when. However, a loophole in the guidelines allows firms to increase the amount by more than promised, as long as customers are given notice with 30 days to cancel.

This week, O2 announced that it will increase its planned price rises, with mid-contract price increases now rising by £2.50, instead of the previously promised £1.80.

For customers on cheaper monthly deals, the increase could be as much as 30%. Customers who have tried to cancel following the price rise have reported being quoted huge bills to settle the cost of their handsets.

One poster on Reddit received a text from O2 which said: "We hope you don't decide to switch today, but if you do switch, you'll have £2,347.46 left to pay as of 05/11/2025. This is the remaining balance for your Device Plan for this device and any remaining balance for a Device Plan for an Apple Watch, if you have one on this account.

"Your final bill will still include any airtime you've used and any out-of-bundle charges like Charge to Mobile services."

Martin Lewis tweeted on Thursday that if you do cancel, as you have the right to do, you don't have to keep paying the full bill you were before, even if you still owe some money for the phone itself.

He warned: "Beware unclear O2 messaging!

"When it notifies you about its hike on its airtime price hike - you've a RIGHT to leave penalty free within 30 days of notification.

"Yet it also says 'If you've a device plan, you'll still need to pay this off in full'.

"That DOESN'T mean you have to pay it all now, you can keep paying for the 'handset monthly with it, but move your Sim (ie airtime plan) elsewhere.'

Martin Lewis has written to Chancellor Rachel Reeves calling for a rule change to ban the practice used by O2, and says he will be urging O2 customers to switch away from the network.

In an open letter he published via MSE, he wrote: "Without an improvement in protection, it is now possible, or even likely, more firms across all the sectors will follow O2's new method, which could add up to hundreds of pounds for households, making the cost-of-living crisis worse and fuelling inflation."

He added: "While all its impacted mobile customers can leave penalty free - and many should (I will be shouting loud and large for them to do so) - we know only a small minority will. Most will likely just have to suck up a rise that was more than they were told when they signed up. This particularly hits older and more vulnerable people who are less likely to switch."