PAYG and monthly contract

[Vampydani]

I was on a 10quid payg tariff and changed to a 12quid monthly tariff. 

Why do you always pay a bit more on the monthly tariff which is always more than 12quid but on PAYG you just top up 10quid with no other hidden charges?

I feel its extremely misleading.

[MI5 · Accepted solution]

@Vampydani 

The only way you'd pay more is if you used services outside of your allowances. 

See here for what's included Guide: Your Allowances - what is and isn't included 

You may also have a premium rate subscription Guide: Have you fallen for or been conned into a premium rate scam? What to do next 

Useful help on bill control here Guide: Tips to avoid unexpected charges on your bill 

Remember that your MyO2 will always give you a breakdown of charges too.

[Vampydani]

Thanks for the reply. I haven't been monthly before so it's all a bit new. It's only 32p not the end of the world lol, I checked the breakdown and its tax.

My understanding when I agreed to the contract and stated several times by the shop advisor it was £12, not 12.32 or £12 plus tax. However, to be honest, I was in error as I didn't get to read the contract properly as I was rushed due to a queue in store, also being naive to monthly contracts.

Thats why I dont understand why PAYG is £12 bang on, no added tax and monthly 12.32? Thanks for the help

[MI5]

@Vampydani 

Contract payments are also subject to an annual rpi increase, which seems likely in your case for 32p 

https://www.o2.co.uk/prices

[jonsie]

It'sm possibly the annual increase in April if you got the contract before the annual rise

https://www.o2.co.uk/prices

[Anonymous]

It will be to do with the billing date. Your bill cannot be set up until your are on the systems, therefore you will pay pro rata until you get your bill. For example - if you took the contract today, and you get the billing email tomorrow, you will have a 31 day bill, two days later will a 32 day bill. This will apply to the first bill. The amount will come out of your bank account by direct debit 14 days after you receive your billing email. Hope this helps.