Mobile networks 'using VAT to push prices up 150%'

Thursday, 13 January 2011 01:15

Mobile operators in the UK are using the recent VAT increase to hike prices by as much as 150 per cent in some cases.

This is according to uSwitch, which said the rise will be a "bitter blow" for consumers who are already disgruntled with their current phone deals.

The comparison site noted that the 2.5 percentage point jump in VAT - from 17.5 per cent to 20 per cent - will add around £22 on average to household pay-monthly bills, costing around £1,040 a year.

Customers who hold accounts with Three would be among those most affected, with the provider putting up the cost of calls from 12p a minute to 30p.

Those with O2 will also see prices climb, with text messages bumping up 20 per cent from 10p to 12p per text.

"Switching network can save shoppers as much as ... £81 a year - without losing your existing number," Ernest Doku, communications expert at uSwitch.com, said.

Use the Myfinances.co.uk comparison site to keep your bills low. 

• Tags:
• cost of living general issues
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• household
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• mobile phone bills
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• news
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• telephones
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• vat