Vodafone customers with a pay monthly contract who signed up on or after 5 May 2016 will be hit with a 3.6% price hike from April.
The increase is based on February’s retail price index (RPI) measure of inflation as announced today, which Vodafone has confirmed it uses to calculate annual increases.
In a statement made today, a Vodafone spokesperson told Moneywise: “We can confirm that the monthly charge of all pay monthly contracts taken out on or after 5 May 2016 includes an annual price adjustment by the Retail Price Index (RPI) of 3.6% as published in March. These price changes will come into effect in April 2018. All other prices remain unchanged. Further information can be found online here: www.vodafone.co.uk/rpi"
The telecoms provider, wouldn't however, tell us how many customers are affected and what the average cost increase is.
Vodafone last upped prices in April 2017 by 3.2%.
Can I cancel my contract penalty free?
Affected customers cannot cancel their contract penalty free as a result of this price change.
This is because under Ofcom rules, customers taking out new mobile, landline and broadband contracts from 23 January 2014 can only cancel penalty free if a provider hasn’t made clear at the point of sale that prices can rise mid-contract. Vodafone says it makes it clear that it can raise prices in line with RPI each year.
Are other providers raising prices?
Yes. Here’s what the major telecoms providers have announced: