Mobile phone charges will rise by up to 66 per cent in a punishing new blow for consumers.

Millions of users signed to Orange and Vodafone will be hit with inflation-busting increases in contract and pay-as-you-go tariffs.

The moves appear to be a direct retaliation against attempts by watchdogs to crack down on rip-off pricing in the industry.

And they come as families are already suffering the biggest squeeze on living costs since the 1870s as price rises have outpaced increases in incomes for four years in a row.

Orange is putting up its minimum call charge for pay-as-you-go customers from 20p to 25p from Friday – a rise of 25 per cent.

Vodafone, meanwhile, is increasing the minimum call charge on some contracts from 15p to 25p – or 66 per cent. These charges apply to calls made outside of those allowed by a customer’s monthly contract.

Its pay-as-you-go users will see the cost of a text rise from 10p to 12p, while calls to mobiles and landlines will go up from 21p a minute to 25p.
The Vodafone increases take effect on July 14.

They are the latest in a series of increases by the major networks, who had vowed to recoup costs elsewhere if watchdogs in Britain and Europe curbed existing pricing structures.

Between them, Vodafone and Orange share just under half the market. Given their clout, the other providers such as O2 are likely to follow suit.

UK telecoms regulator Ofcom is forcing companies to reduce the amount they take from incoming calls to customers. Until earlier this year, the networks received 4.18p a minute from incoming calls through the so-called termination rate. That figure was cut to 2.66p a minute in April and will be further reduced.

Separately, the European Union is forcing down the cost of using mobiles when visiting other member states – so-called roaming rates.

The net effect of the fresh price rises is that, despite the promises of regulators, consumers are no better off.

Ernest Doku, of uSwitch.com, said: ‘In the face of other rising living costs these will be a slap in the face to pre-pay consumers who will be counting the cost of every single mobile call.

‘With both local calls and text prices increasing, pay-as-you-go users will probably have to do quite a bit more topping up for their credit to go as far.

‘These increases beg the question of whether a contract might be better value for money for some pre-pay users.

‘If you are spending more than £20 each month topping up your mobile, seriously consider opting for a pay monthly or SIM-only solution.

‘With lower call rates, free texts and data, as well as the option to get a free phone in many cases, a pay monthly contract can work  out significantly cheaper in the long run.’

Vodafone blamed the price rise on Ofcom.

It said: ‘We believe we continue to offer great value for all pay-as-you-go customers compared with our competitors. This price rise comes after recent regulatory changes.

‘During our discussions with Ofcom over mobile termination rates, we stressed that if the rates came down rapidly and dramatically, the cost of pay-as-you-go was likely to rise as a consequence.’

Vodafone said customers who buy regular monthly top-ups of at least £10 can earn extra free calls and texts under a system it calls Freebees.

Orange said it remained ‘committed to providing the best value and services possible’.

It added that the price rises were offset by new perks such as an increase in the number of free texts that customers get with a £10 top-up.

Recent research suggested the average household will have to find almost another £900 this year just to stand still.

The price of a basket of food is  rising at the fastest rate for two years, while at the same time car and household insurance bills are also rising.

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