We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Tesco £6 Sim

2»

Comments

  • outofmoney
    outofmoney Posts: 936 Forumite
    That's my point really. I expected it to be £6 all the time since it was advertised as that.
  • Techhead_2
    Techhead_2 Posts: 1,769 Forumite
    rwalton159 wrote: »
    There's a principle here in that when you are offered something at a price and accept it, you expect to pay that amount for the length of the contract. It could be argued that the supplier should take any VAT increases. If a company makes cost savings you don't receive a lower bill!

    Except, of course, when VAT was temporarily reduced to 15% they did reduce the cost.

    If you look at your contract you'll see you are billed monthly and what will alter the amount you pay . So nothing is hidden.

    We now come to your assumption that you would expect to pay the same amount each month. You would need to substantiate that a reasonable person would come to that conclusion. Given the extended and massive general publicity the VAT rise had and the agreement you have with your provider, is it reasonable to not be aware of the increase.

    Personally I don't think people have a valid complaint. There was sufficient time to make alternative arrangements if you disagreed.
  • outofmoney
    outofmoney Posts: 936 Forumite
    Techhead. Whilst I was aware of the increase I did not believe it applied to the SIM. With no warning letter the first I knew was when the bill came.

    When the VAT dropped the cost of calls altered, when it recently rose, I just assumed they would go back up. I did not expect the cost of the SIM to change.
  • simax
    simax Posts: 1,977 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    rwalton159 wrote: »
    There's a principle here in that when you are offered something at a price and accept it, you expect to pay that amount for the length of the contract. It could be argued that the supplier should take any VAT increases. If a company makes cost savings you don't receive a lower bill!

    There's also a principle that you should read your terms and conditions that state prices may change due to VAT fluctuations. (Prices went down when VAT was 15%)

    Why should companies swallow the VAT hike?

    If, when VAT was reduced to 15%, the phone companies kept prices the same, there would have been uproar!! You can't have it both ways.
    I spent 25 years in the mobile industry, from 1994 to 2019. Worked for indies as well as the big networks, in their stores also in contact centres. I also hold a degree in telecoms engineering so I like to think I know what I’m talking about 😂
  • outofmoney
    outofmoney Posts: 936 Forumite
    Simax, as I mentioned when VAT dropped it was the price of calls that changed NOT the SIM, so would have expected it to apply the same when VAT rose. However I do agree that most likely it is mentioned in the small print somewhere, and sadly depsite looking at the info, must have missed this point.
  • simax
    simax Posts: 1,977 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Charges were lowered on the "proper" networks, so cannot vouch for MVNO's....
    I spent 25 years in the mobile industry, from 1994 to 2019. Worked for indies as well as the big networks, in their stores also in contact centres. I also hold a degree in telecoms engineering so I like to think I know what I’m talking about 😂
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.6K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.6K Work, Benefits & Business
  • 603K Mortgages, Homes & Bills
  • 178.1K Life & Family
  • 260.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.