Just came across this article on BBC News:
http://www.bbc.co.uk/news/technology-26290206
So I checked my MyAmazom page and sure enough £30 price hike on my renewal status!! No notification from Amazon whatsoever, I have no need of Lovefilm as I use Netflix so it's adios Amazon Prime.
Sad to say goodbye to Prime but really miffed about Amazon's underhand approach.