Martin Lewis issued an urgent warning about mobile phone contracts, as sharp price increases were announced.

The money-saving expert said Vodafone and three users in particular should be vigilant.

Prices are raised By these companies when they make changes to their terms and conditions.

The change will affect anyone entering a new deal or upgrading their contract in the coming months.

It is not unusual for mobile phone companies to raise their prices in line with inflation, however Martin says These price increases are more severe than usual.

What you need to know

Starting in April, Three will increase prices by 4.5% for monthly payment clients who enter into a new deal or renew their contract effective October 29, 2020.

The increase will be applied annually, which means bills are set to rise 4.5% in April 2022 as well – and then annually.

This affects all monthly paying customers, including those with mobile phone contracts, SIM-only deals, mobile broadband, and home broadband.

If you signed a new or renewed deal with the Three before October 29, 2020, this price increase will not apply to you. Instead, next April your bill will only rise due to inflation, as it did in May.

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Likewise, Vodafone will raise prices in April based on inflation and 3.9% for monthly payment customers who enter into or renew a new deal from December 9, 2020 onwards.

Like Three, this affects all monthly paying customers, including those with mobile phone contracts, Sim-only deals, and home broadband offerings, as well as tablet plans, Apple, Samsung Watch, OneNumber for Watch, and Vodafone Basics.

Again, price hikes will be applied annually, so inflation-led bills will rise plus another 3.9% in April 2022 as well, and thereafter annually.

If you signed a new deal or renewed with Vodafone before December 9, 2020, this price increase will not apply to you. Instead, next April, your bill will only rise because of inflation, as it has this year.

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Warning

MSE states that many companies regularly increase prices in the middle of the decade. They are allowed to do so as long as they warn clients when registering, but until this year, the price increases for medium contracts have usually only been at the rate of inflation.

The notable change now is that some companies are starting to stabilize prices above inflation, which means that your bills will rise sharply.

In addition to Vodafone and Rich, you see MSE reports BT, EE, and Plusnet do just that Already this year.

MSE says this news doesn’t mean you should rule out renewing or signing a new contract with Three or Vodafone but it adds that it’s important that you take it into account in your decision.