Tesco Mobile customers have been issued a recent warning amid rising prices which are soon set to come into force.
According to Money Saving Expert (MSE), pay monthly Tesco Mobile customers whose contract expired before February 1 will see their mobile bills increase this spring by 14.4 per cent.
The mobile provider announced the news meaning customers will now also need a Clubcard to avoid mid-contract price rises. Tesco Mobile, which has five million customers, are not the only ones to have price hikes with EE, O2 and Three also raising prices up to 17.3 per cent.
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Thankfully users can sign up to a new plan or cancel penalty-free to avoid this year's hikes. So if you need to do this, here's what you need to know.
What does this mean for Tesco Mobile customers?
MSE have said that whilst the supermarket has frozen prices for the duration of selected contracts across its pay monthly plans, from March 27 this will only apply to its 'Clubcard Price' deals.
Who is affected by the Tesco Mobile price hikes?
Pay as you go customers will not be affected with the hikes only impacting those who pay monthly. MSE explain that the prices rise will depend on your contract status and the type of plan you're on.
They add that customers should be aware of the following:
- If your contract expired before February 1 2023, your price will rise by 14.4% this April. You can avoid this hike by upgrading to ANY Tesco Mobile plan before March 27 2023, or a Clubcard Price plan on or after 27 March 2023. Alternatively, you can ditch and switch penalty-free.
- If your contract expired or expires between February 1 2023 and January 31 2024, your price will rise from April 2024. The increase will be based on December's consumer prices index rate of inflation published in January of that year, plus 3.9 percentage points. Again, you can avoid this by upgrading to a Clubcard Price plan or ditching and switching after your contract ends.
- If you're currently in contract, and you joined before March 27 2023, your price WON'T rise for the duration of your contract. Once your contract ends, you'll be subject to an annual price rise each April.
- If you join Tesco Mobile or sign up to a new deal on or after March 27 2023, your price WILL rise mid-contract starting in April 2024, unless you're on a Clubcard Price plan.
How to avoid the Tesco Mobile price hike
You can avoid the hikes, according to MSE, by getting a Clubcard as its price freeze will only apply to Clubcard Price deals as of March 27.
They add: "Tesco Mobile customers on other plans will see their prices rise each April in line with the consumer prices index rate of inflation published in January of that year, plus 3.9 percentage points."
If you take out any new deal with Tesco Mobile before March 227 of this year or one of its Clubcard Price deals from this date, you don't need to worry about your bill going up mid-contract. MSE says that people should also try haggling to see if they can get a better price.
If you are not happy, remember you can leave penalty-free at any point.
You can check out Tesco Mobile's latest contracts and deals through their website.
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