All of the UK’s mobile phone networks have reduced their monthly line rental, passing on the 2.5% reduction in VAT. VAT has been reduced from 17.5% to 15%, which equates to an actual saving of 2.13%.

It’s going to take a little while for all retailers to update their web sites so over the next few days you might notice some discrepancies. The important thing is that the new lower prices will apply when you receive your bill from the network.

Orange Canary 30 for example, now costs £29.36 per month. The price of phones has also been reduced and Orange has rounded down the cost of all phones to the nearest 50p.

T-Mobile has reduced prices but is continuing to show deals at the old prices for the time being. All new and existing customers will see a reduction on their bills from 1st December. PAYG customers will receive extra credit at the end of each month depending on how much they have topped up.

Vodafone are also passing on the VAT saving to all customers and line rental will be reduced by 2.13%. PAYG customers will receive an extra 2.5% extra credit when they top up, which is actually more than the effective VAT saving.

3 are passing on the VAT cut for all of their products and services. The cost of phones and tariffs will continue to be shown at the old prices for the time being, but you will pay the new, lower price. So if a phone costs £99.99 you will actually pay £97.86. A tariff advertised at £18.00 per month will be charged at £17.62. PAYG top ups offer extra credit, so if you top up by £10.00 you will receive £10.18 of credit.

O2 are passing on the VAT reduction. The new prices may not be displayed on all web sites immediately.

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