O2’s new flexible tariffs allow you to adjust your monthly data allowance

Changes could save money for millions of customers who are on contracts which give them more data than they need

The announcement came after Citizens Advice revealed last week that O2’s rivals - Vodafone, EE and Three – continue to charge customers extra for a handset after it had been paid off (Reuters)

O2 is launching new tariffs on Friday that will allow customers to move their bills up or down each month depending on how much data they expect to use.

The changes could save money for millions of customers who are locked into contracts which give them more data than they need, or those that go over their allowance and incur additional charges.

The new tariffs are available for new customers or those who are upgrading and will allow people to adjust their tariff through the 02 app, in store or over the phone.

The announcement came after Citizens Advice revealed last week that O2’s rivals – Vodafone, EE and Three – continue to charge customers extra for a handset after it had been paid off as part of their fixed deal.

The advisory service said the networks were overcharging these loyal customers an average £22 a month and up to £38 for contracts with high-range handsets such as the iPhone 7, the Galaxy S8 or Xperia XZ Premium, and warned that consumers could find themselves paying £46 a month extra for the iPhone8 256GB model.

O2 chief executive Mark Evans told The Independent he found the report’s findings alarming. “It really surprised me,” he said. “The sector as a whole doesn’t have a great record for customer confidence and trust, issues like that have only damaged what trust people had in us.”

He added: “Now millions of customers have realised that they’ve been paying up to hundreds of pounds for something that they really shouldn’t have paid for.

“If a mortgage company said, you’ve paid off your mortgage but we’re just going to carry on taking that direct debit, there would be outrage.

“We’d like to see the other operators review their position and follow our lead with transparent tariffs that put customers in control.”

O2 already separates the monthly cost of the handset and the contract separately, as does Sky Mobile and GiffGaff.

Mr Evans added that O2 also gives customers the flexibility of being able to switch their handset at any time.