Tesco Mobile announces price rises: here's how to avoid them

Tesco Mobile – one of the few UK mobile network providers that commits to not increasing contract prices, has announced changes that will mean bill hikes of nearly 15% for some customers.

The provider has said that costs of both maintaining and improving its service will mean it can no longer offer a price freeze across the board – but Clubcard customers, and those who take out a new deal soon, can avoid the increase.

Read on to find out how to stay on top of the latest in a series of steep price hikes for telecoms customers.

See how Tesco Mobile fares in our round-up of the best and worst mobile networks in the UK.

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When will Tesco Mobile's fixed price promise end?

Tesco has said that from April 2023, some of its monthly prices will change and are set to rise by the Consumer Price Index (CPI) – which is currently 10.5%, plus an additional 3.9%.

Whether this will impact you will depend on what type of contract you have.

For those in-contract, and who joined before 27 March 2023, the annual rise will only apply when the contract ends. 

For those outside a contract term, and where the contract ended before 1 February 2023, the new charges will apply from April 2023. Customers will be notified via email or SMS. If a contract ends between 1 February 2023 and 31 January 2024, the rise will come in from April 2024.

In addition

• Anytime Upgrade Flex customers who have paid off a phone contract upfront will see an annual rise to basic monthly usage each April, only after the first 12 months from the start of a contract.

• Anytime Upgrade Flex customers who've paid off a contract early will see the rise apply each April after the original phone contract term has ended.

Benefits for Tesco Mobile Clubcard customers

One of the ways to avoid the hikes is to get a Clubcard Price deal – for which you need to be a Tesco Clubcard holder. In this case, Tesco promises to freeze the monthly price for the duration of your contract.

To take advantage of this, you'll specifically need to choose a fixed price plan under one of the specific Clubcard Price deals.

Bear in mind that if you're on a Clubcard Price deal already, the changes may still apply if this contract has ended, or when the contract ends, unless you take action.

What to do if you're a Tesco Mobile customer

Fortunately you do have a few options – aside from doing nothing and facing the hikes head-on:

• If you're looking to get a new contract with Tesco Mobile, get this tied up before 27 March 2023 – you'll then avoid the hikes until the end of your contract period, and can weigh up your options then.
• Use a Tesco Clubcard to sign up to a Clubcard Price deal, which will freeze your monthly costs for the duration of the contract.
• If you particularly want to stay with Tesco Mobile, and you're out of contract, stick to pay-monthly deals – these are always preferable since they give you the option of switching easily if the price changes.

You could also consider switching to a different mobile provider altogether. Tesco Mobile uses O2's signal, along with a range of other providers – including Sky and Giffgaff. Sky doesn't currently raise prices mid-contract for mobile customers, and Giffgaff has a range of monthly Sim deals called Goodybags that typically offer good value.

Browse Sky Sim-only deals and Giffgaff Sim-only deals to see what's on offer.

Or you could switch to another provider entirely. Tesco Mobile offers decent value for some of its Sim-only deals, but it's far from the only provider to do so. Switching provider is easy – and you can keep your number. Read our guide on how to switch mobile provider if you need some pointers. And check our guide to the best Sim-only deals, where the likes of Talkmobile and Smarty offer low-cost monthly bundles starting at just £5 per month.

Which? calls for action from telecoms providers

A Which? campaign is calling on essential businesses, including telecoms providers, to help consumers grappling with the impact of the cost of living crisis. Like supermarkets and energy companies, telecoms providers must pull together to create a fairer market, and help those struggling with the financial and emotional impact of rising prices.

We're calling on all broadband and mobile providers to allow customers to leave their contract and switch to another provider without penalty if prices are hiked mid-contract, and to cancel any 2023 price increase for financially vulnerable customers. 

Rocio Concha, Which? Director of Policy and Advocacy, said: 

'It's really disappointing that Tesco Mobile is planning to follow others and introduce the broken model of above-inflation price increases baked into customer contracts when it has previously championed fixed prices. 

'Many customers on these contracts currently find themselves trapped in a Catch-22 between price increases or significant exit fees if they want to switch to a better deal. Ofcom is currently reviewing these inflation-linked price hikes and considering their fairness for consumers.

'In the meantime, Which? is calling on telecoms providers to consider very carefully if this level of price increases can be justified. They should let their customers leave without penalty if they face mid-contract price hikes, and cancel 2023 mid-contract price rises for financially vulnerable consumers.'

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