Martin Lewis reveals 3 ways to check you’re not paying too much for your phone contract
MARTIN Lewis has warned that major telephone networks will increase prices by up to 8 percent for millions of people.
BT, EE, O2, Sky, Three, Virgin Media and Vodafone have all confirmed increases for this spring.
2
These are in addition to increases to 17.3 percent last year.
Someone on a standard two-year contract paying £20 per month in early 2023 could soon be paying more than £25 per month.
The Money Saving Expert previously called for mid-contract increases above inflation to be banned.
Speaking on Martin Lewis Money Show Live, he said: “What’s strange here is that while the price you pay if you hold goes up, if you switch to a SIM only deal, prices plummet.
“Step 1 is to text INFO for free to 85075 to check if you are free to leave.
“Step 2 is to use a cheap SIM match and step 3, to keep your number, is text PAC to 65075 and give the code to your new company.”
It comes after Which? warned that broadband customers could pay £150 more than expected due to “unpredictable” mid-contract price increases in 2024.
The consumer group analyzed increases from top providers on their 18- and 24-month deals.
BT and EE customers who signed a contract in January 2023 could see some of the highest average price increases of £147.43 and £147.31.
Vodafone and Plusnet customers could see an increase of £122.38 and £117.87 respectively.
TalkTalk customers could see a smaller increase of £76.09 on average over the course of shorter 18-month contracts.
Virgin Media did not use inflation-related price increases in 2023, but some customers’ prices did rise by an average of 13.8 percent due to ad hoc price increases, according to Which?.
Which? argues that it is unfair for consumers to sign up for deals that give them no certainty about how much they can expect to pay over the course of their contract, and then have to pay exit fees if they want to leave early.
How can I reduce my mobile bill?
If you think your bills are too high and want to reduce them, the first thing you need to do is find out what the cheapest deal on the market is.
You can use this rate as a negotiating tool to get a better offer from your provider or as inspiration to switch providers.
Sites like MoneySuperMarket and Uswitch all help you customize your search based on price, speed and provider.
Make a cheaper deal
If you have found a cheaper rate with another provider, contact your provider to see if they can match the price.
If negotiation fails, you can threaten to leave.
Your provider may then be more inclined to keep you by offering you a better deal.
Trying to negotiate always makes it easier to decide whether to renew your contract or move to another provider.
Switch providers
If you’re unhappy with the new costs and every attempt at negotiation hasn’t gone your way, switching to another provider could be the best way to save money on your telecom bills.
But if you want to switch, make sure you know whether your contract is still running or not.
If you are halfway through your contract and want to leave, please note that you may be charged an exit fee. So contact your provider for any costs.
Mobile phone users are stuck between “exorbitant” mid-contract price increases or high exit fees, according to Which?.
It showed that an EE customer would have to pay an exit fee of £424.67 if they left a year early, and that Three’s customer would have to pay £379.46 to end their contract.
Furthermore, using the example of an EE customer who signed a 36-month contract for an iPhone Pro Max with unlimited data: Which one? estimates that the customer would pay an extra £105 for the handset over the next year due to the price increases.
Three customers will face the lowest sign-up fee of £169.59 if they end their contract a year early.
It’s always worth asking your provider if they can offer you something cheaper, so feel free to call them even if you have a contract.
If not, make a note of the date your contract ends and note other deals you can switch to.
Check whether you can get a social rate
If your household has a low income, it is also worth investigating social rates.
These broadband packages and discounts have been created for people who receive certain benefits.
They are often available to people on income support, Universal Credit or disability benefits.
About 4.2 million households qualify for these cheaper rates, but only 55,000 take advantage of them.
Voxi and SMARTY both offer these cheaper mobile phone contracts and prices start at £10 per month.
Do you have a money problem that needs to be solved? Get in touch by emailing money@the-sun.co.uk.
Moreover, you can join us Sun Money chats and tips Facebook group to share your tips and stories.