Thousands of mobile phone users will see their monthly bills rise from April (Image: Getty)
Thousands of mobile phone users across the UK will see their monthly bills go up from April as a kick in.
Most , including O2, Three, Vodafone and EE, implement mid-contract price increases every April, meaning higher costs will take effect in a matter of weeks.
But one mobile firm is urging customers to avoid the April price hikes altogether by making a switch and spending £4.90.
Mobile operator spusu has introduced a price freeze in response to the crisis that will remain in place throughout this year for both new and existing customers.
The company is currently offering SIM-only deals from just £4.90 per month, allowing customers who switch to the spusu 5 deal to get 5GB of data, unlimited minutes and texts every month.
Customers on the deal will also get free roaming in the EU, with up to 3GB of data, 500 minutes and 400 texts while travelling in Europe.
As prices are frozen until January next year, it means customers won’t face an unwelcome increase to their costs from April and will remain at a fixed fee of less than £5 per month.
Christian Banhans, UK managing director of , said: “People across the UK continue to feel the strain of the cost-of-living crisis, with mobile price rises adding additional pressure. At spusu, we believe staying connected shouldn’t come with unexpected price hikes or hidden fees.
“Unlike other providers, we won’t catch customers out with mid-contract increases or expensive exit fees. Our plans are simple, affordable and transparent. By introducing options like spusu 5, we’re making sure everyone has access to reliable mobile service at a fair price.”
Most major phone, broadband and pay TV companies increase their prices each April, with the uplift usually linked to inflation, including for customers who are mid-contract.
However, regulator Ofcom has introduced new rules that require companies to be upfront about price hikes by telling customers exactly how much they will have to pay in pounds and pence.
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Previously, customers were informed about price hikes included in their contract using percentages or inflation figures which makes it difficult to accurately estimate what monthly bills would be.
Ofcom has now banned companies from linking price increases to future rates of inflation, which often include a percentage increase on top, and said the change will help to prevent the “nasty surprises” of inflation-based price increases.
It means that future price hikes must be set out “prominently and transparently” in pounds and pence at the point of sale, but they still allow for annual mid-contract increases by a fixed amount.
So for new customers, or those renewing or upgrading, firms must tell you the exact rises that are coming in pounds and pence. For existing customers in their minimum contract term, price rises will be determined by what was in your contract when you signed up, which in most cases will be the inflation rate plus an extra percentage charge.