Tesco Mobile to hike bills by 14.4% as it ditches its 'fixed price' promise
Tesco Mobile is to hike prices for out-of-contract customers in a few weeks time - and it is scrapping its fixed price promise for those without a Clubcard.
Customers whose Tesco Mobile deal expired before February 1, 2023 will see their bills go up by 14.4% from April.
If your contract runs out between February 1, 2023 and January 31, 2024, your price will go up in April 2024 instead.
This increase will be based on the Consumer Prices Index (CPI) rate of inflation for December, plus an additional 3.9% on top.
If you're still in contract with Tesco Mobile or you're on a pay-as-you-go deal, your price won't rise.
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But if you sign up to a new contract after March 27, 2023, your price will go up in April 2024 - unless you’re on a special Clubcard Price plan.
This is because Tesco Mobile has confirmed it is scrapping its fixed price promise for customers that aren’t signed up to a Clubcard Price plan.
The fixed-price promise ensures customers don't see mid-contract price rises.
If you’ve been told your bill is going up, you can switch to another network, or upgrade to another Tesco tariff before March 27, 2023.
A Tesco Mobile spokesperson said: “At Tesco Mobile, we’re committed to offering our customers great value.
“That’s why we’re freezing prices for the length of a customer’s contract through Clubcard Prices. We’re proud to be one of the only networks to offer frozen prices.
“As well as having the reassurance that their bill won’t go up mid-contract, customers who choose a Clubcard Price deal will also receive all the other brilliant benefits a Tesco Clubcard provides.
“This includes exclusive savings on products, money off grocery and fuel bills, and vouchers to use with over 100 Reward Partners.”
The news from Tesco Mobile comes after Ofcom confirmed it was launching an investigation inflation-linked price rises on phone and broadband contracts.
The broadcasting watchdog is looking into whether mid-contract prices give customers enough certainty about what they can expect to pay.
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Other major providers including Virgin Media O2, BT, EE and Sky have already announced price rises of up to 17.3% for their mobile customers.
How to cut the cost of your broadband and mobile bill
If your mobile bill is about to get more expensive, you might be able to cut costs.
If you're out of contract, you're free to leave and go elsewhere - or maybe you want to haggle down your current provider.
There is also no harm in trying to haggle if you're still in contract.
The first thing you should do, is compare prices elsewhere to see what other deals are available.
You'll normally find SIM-only plans are the cheapest.
You can compare prices by using comparison websites such as MoneySupermarket and Uswitch.
Take a look at how many minutes, texts and how much data you currently use, so you can find similar plans that suit your needs.
You may find you're actually paying too much right now for allowances that you're not using.
When haggling, explain the better deals you've seen elsewhere then ask if the company can match or beat that price.
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