UK Mobile Bills Are About to Rise — And a £3.2bn Lawsuit Might Be Why.

With millions set to pay more from April 1, some are wondering if legal trouble is the real reason behind the hike.

If you’re with Vodafone, EE, O2 or Three, you might want to brace for a bump in your mobile bill. Starting April 1, prices are going up — and while providers point to inflation and contract terms, some believe there’s more to the story.

A massive £3.2 billion lawsuit is currently making its way through the UK courts. It accuses the big mobile networks of unfairly charging customers for phones that were already paid off, long after their contracts ended. Now, some industry watchers are connecting the dots, asking: Are we paying more now to help them cover what could become a huge legal bill later?

The Case That’s Shaking Up the Industry

At the centre of this legal storm is consumer advocate Justin Gutmann, who says millions of mobile users have been hit with what he calls a “loyalty penalty.” The claim? That customers who stayed beyond their minimum contract term were still being charged for handsets they’d already paid off — essentially paying twice.

His legal team is pushing to get the case certified by the Competition Appeal Tribunal, a move that could open the door to one of the biggest consumer payouts the UK has ever seen.

The mobile providers, unsurprisingly, have pushed back. They argue the claims are outdated, misguided, and paint an unfair picture of how competitive the mobile market really is.

What You’ll Actually Pay from April 1

While the court case brews in the background, your mobile bill is quietly climbing. Here’s a breakdown of what’s changing next month:

📱 O2

• SIM-only and pay-monthly plans: going up by £1.80/month

• Smartwatch or data-only plans: rising £0.75/month

• Pay-as-you-go and device-only customers? You’re in the clear — no increase

• Out-of-bundle charges? Set to rise 5% annually

📱 Vodafone

• If you joined or upgraded after July 2, 2024:

  • Basic plans: +£1/month

  • Other mobile plans: +£1.80/month

  • Broadband: +£3/month

• Signed up before July 1, 2024?

  • Expect a 6.4% increase (based on inflation plus a little extra)

📱 EE and Three

Exact figures vary, but most customers on contracts with inflation-linked clauses can expect increases in line with CPI + 3.9%.

A Coincidence — Or Something More?

On paper, these price rises follow the usual formula: inflation adjustments, fixed uplifts, contract fine print. That’s what the networks say, anyway. But the timing? It’s hard to ignore.

“Telecom companies don’t like uncertainty,” says one market analyst. “When there’s a major lawsuit looming, it’s not unusual for them to look for ways to protect revenue — quietly and quickly.”

The networks have denied any link between the lawsuit and the April hikes. Still, plenty of customers are asking questions. If you’re paying more, you at least deserve to know why.

What You Can Do Right Now

If your bill’s going up and you’re not happy about it, here are a few smart moves to consider:

• Check your contract. Know what you agreed to and how inflation-linked rises are calculated.

• Compare providers. SIM-only deals might save you a bundle — especially if your phone’s already paid off.

• Keep an eye on the lawsuit. If the case is certified, you might be eligible for a payout.

• Switch if it makes sense. Loyalty shouldn’t cost you more.

People Also Ask (FAQ)

Why are mobile bills going up in April?
Most networks say it’s due to inflation and pre-agreed contract terms. But some believe the pending lawsuit could also be playing a role.

What is the £3.2 billion lawsuit about?
It claims that networks kept charging customers for phones they’d already paid off — a practice dubbed the “loyalty penalty.”

Will the lawsuit affect my bill?
Not directly, but some experts think the networks may be using price rises to cushion potential legal costs.

Can I join the class action?
If the courts approve the case, affected customers may be able to join. Details would follow from the legal team or regulators.

Which providers are involved?
The claim targets Vodafone, EE, O2, and Three — the UK’s biggest mobile networks.

Opinion: Are We Really Just Paying for Inflation?

Let’s be honest — it’s not the first time mobile bills have gone up, and it probably won’t be the last. But with a lawsuit of this size circling the industry, it’s fair to ask: Are we really paying for rising costs, or just helping cover the fallout of past mistakes? Either way, it’s a reminder that staying informed — and staying flexible — is the best defence for your wallet.

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