Phone Contract Early Termination Fee: How It Is Worked Out

EE adds together all outstanding monthly charges for the rest of your minimum term, removes VAT, deducts 4% for early payment, adds any remaining Add to Plan charges, then adds VAT back. Its example: £86.40 for a £30 a month plan with three months left. source

O2 says that outside O2 Refresh the charge covers the remaining months of the minimum term. For SIM-only and Standard Plan contracts it is the monthly tariff times the remaining months, minus 4%. source

Three says you may be charged an early termination fee if you leave before the end of your minimum term, and any outstanding device plan balance must still be paid in full. source

If your contract does not say how much the price can rise, or the rise is bigger than the contract allows, your provider must give you at least 30 days' notice before it takes effect. You then have 30 days to leave without exit fees, either to a new contract with the same provider or by switching. source

If a scheduled price rise was not made clear when you signed, you can leave without penalty. If you think a rise was not shown clearly, complain to your provider. source

Providers can change contract terms, but they must give at least one month's notice, and you have the right to leave without penalty if the change does not benefit you. You cannot leave over changes that only benefit you, are purely administrative or are imposed by law, such as a VAT change. source