Annual Price Adjustment

Annual Price Adjustment

Each year we make adjustments to the amount customers pay per month for their plans so we can continue to invest in our networks, products and services.

We’re letting customers know in advance that if they sign up or upgrade to a new contract from the 9 December 2020, they will see an increase in their monthly bill. This will be made in April 2021, based on the Consumer Price Index (CPI) plus 3.9%.

How this affects you

I signed up for my plan after 9 December 2020:

  • You’ll see an increase in your monthly bill each April, based on the Consumer Price Index (CPI) plus 3.9% 
  • We use the CPI figure published by the Office for National Statistics in January and apply the change in April each year, in line with your terms and conditions
  • The 3.9% reflects the investments we need to make in our network, rising costs of equipment and services from our suppliers.

I signed up for my plan on or after 5 May 2016, and before 9 December 2020:

  • You’ll see an increase in your monthly bill each April, based on the Retail Price Index (RPI) 
  • We use the RPI figure published by the Office for National Statistics in March and apply the change in April each year, in line with your terms and conditions
  • This also applies to mobile broadband products signed up for after 28 September 2016.

If you signed up for your plan before 5 May 2016 and you are still in contract, you’re covered by our Fixed Price Promise, so there will be no increase.

I want to see a full list of products that are impacted

Further information

The Consumer Price Index (or CPI) is the government’s measure for whether the cost of goods and services is going up or down. It’s based on price changes over the year across several industries. To find out more, search for CPI ONS.

You’ll be affected if you’re on a Pay monthly contract, you’re a business customer, or you get your home or business broadband from us. If you joined up after 9 December 2020, the following services are subject to the Consumer Price Index (CPI):

  • Pay monthly plans
  • SIM only plans
  • Tablet/Device plans
  • Watch (E.g. Samsung and Apple watch)
  • OneNumber (for watch)
  • Home broadband (excluding Extra plans still in contract)
  • Gigacube
  • Data Dongle
  • Mobile WiFi
  • Data only SIMs
  • Vodafone Basics

The services that follow won’t be affected by this change. If you don’t see your service on either of these lists, then get in touch, or call us on 191 (free from Vodafone devices) or 03333 040 191 from any other UK landline or mobile:

  • Insurance
  • Mobile Add-ons (previously called Extras)
  • Home Broadband Extra plans, as long as you’re still in contract
  • Home phone calling packages
  • Out of plan charges
  • V & Smart tech products

Public sector plans won’t be affected by the price rise.

If you signed up to or upgraded your plan after 9 December 2020, your bill will be affected. This price increase will be applied from April and will increase by an amount equal to the Consumer Price Index (CPI) rate published by the Office for National Statistics in January, plus 3.9%. For example, if the CPI is 0.5% the bill will be adjusted by 0.5% + 3.9%, so 4.4% in total. 

We’re not changing existing customers’ terms and conditions. Existing contracts have annual prices adjusted by the Retail Price Index (RPI) in their terms and conditions. For contracts signed on or after 9 December 2020, annual prices adjustment will be by the Consumer Price Index (CPI) plus an additional 3.9% from April.

These increases reflect the investments we need to make in our network, rising costs of equipment and services from our suppliers.

The RPI (Retail Price Index) has been the measure traditionally used by government and companies to calculate things such as interest rates and price increases. However, the CPI (consumer price index) is becoming the more popular benchmark, so we are migrating to this measure from Dec 9th to simplify things for our customers.

The price rise only applies if you’re a new business customer. If you’re already a customer, you won’t be affected until you upgrade or renew your contract. Business customers will be contacted ahead of an increase to let them know about any price changes. 

The RPI or CPI+3.9% rates are applied to your monthly fee, before the discount is applied.

If you have the Fixed Price Promise, it means you signed up for your contract before 5 May 2016. We’ll continue to honour it until the end of your contract. Any new or upgrading customers are not eligible for the Fixed Price Promise.

Consumer prices increased by 2.5% as per the RPI figure published in March 2020.

Price Rise examples

For contracts with RPI price adjustment:

  • The actual adjustment is dictated by the RPI rate published by the Office for National Statistics in March (consumer contracts) and January (business plans) each year.
  • As an example, if the rate is 1.1%, prices would be affected as follows:
    • A customer paying £22 a month would see their plan increase by 24p a month from April
    • A customer paying £40 a month would see their plan increase by 44p a month from April

For contracts with CPI+3.9% price adjustment:

  • The actual adjustment is dictated by the CPI rate published by the Office for National Statistics in January (consumer contracts and business plans) each year.
  • As an example, if the rate is 0.5%, prices would be affected as follows (with 3.9% added to the 0.5%):
    • A customer paying £22 a month would see their plan increase by 96p a month from April
    • A customer paying £40 a month would see their plan increase by £1.76 a month from April