Martin Lewis’ MoneySavingExpert (MSE) has warned millions of Britons are being ‘ripped off’ if they’re paying more than £7 for their phone.
The finance website said people could get their mobile phone bills as low as £3.79.
With a years-long cost of living crisis still looming, the majority of mobile phone and broadband contracts will rise by a thumping 8.8% from April.
And sadly, this price hike isn’t an April Fool’s. Mobile customers have a choice: stick around for what consumer watchdog Which? says are ‘unconscionable’ mid-contract price rises or face exit fees next month.
But as suffocating as rising bills can feel, MSE has seen one of the ‘cheapest’ SIM deals ever.
‘If you’re paying more than £7 a month for your mobile, you’re likely being ripped off!’ the website said on X yesterday.
‘Get the cheapest 20GB SIM we’ve ever seen – just £3.79 a month.’
In a guide to the best SIM-only deals, MSE says: ‘If you’re happy with your phone and out of contract, you could save by switching SIM (the chip in your phone that dictates your data, calls and texts allowance).
‘It’s really simple, but do note there’s often a credit check.’
People understandably pinching the pennies are recommended to swap to Lebara.
The budget telecoms giant is perfect, MSE says, for people who don’t need too much data but need ‘decent’ service.
The 3GB data and 300-minute deal costs only £2 a month for the first six months before going up to £4.40, ‘for an equivalent £3.20/month over 12 months’.
‘It’s a one-month rolling contract, so you can cancel at any time,’ MSE adds.
Scroll-happy customers are also advised to go to Lebrara if they want 5GB or 15GB of data, coming at about £3.45 and £4.45 a month respectively.
The 15GB deal, MSE found, is a one-month contract that starts at just 99p for the first half of a year.
The average monthly phone bill for a handset and SIM last year was £35.42, according to the price comparison website Uswitch, with SIM-only deals saving consumers £360 a year.
Martin Lewis gave mobile phone users a similar warning in January after customers saw double-digit price rises last year.
British mobile networks typically up their prices in April in line with the Consumer Price Index (CPI), which measures how prices change over time.
But they tend to whack on an additional 3.9% bill increase to offset inflation – the speed at which prices increase – and business costs.
‘Even if you’ve signed up to a mobile phone contract with a fixed monthly direct debit payment, it’s common to face a mid-contract price hike,’ MSE said last month.
‘This is usually between 3% to 4% – resulting in price rises of around 7% to 8% once the extra 3.9% has been added.’
Phone bills aren’t set in stone, MSE says. When someone signs a phone contract, they actually agree to pay both a certain amount per month and any mid-contract price hikes.
How much, if at all, someone’s mobile bill could go up depends on which provider they’re with.
Telling them to brace for even more in April, Lewis urged people to ‘take action’ during an episode of his Martin Lewis Money Show.
He said people wary of paying too much for their mobiles should text INFO to 85075, a free number from media regulator Ofcom that tells people what exit fees, if any, they’d need to pay if they left their current supplier.
People forking out more than £7 for a handset they’re happy with are being ‘ripped off’, Lewis said, and told people to shop around for better deals.
On top of MSE, the free online comparison website Uswitch also allows people to customise their searches based on price, speed and provider.
Some companies offer people on welfare social tariffs which are cheaper broadband and phone packages.
They’re sometimes labelled ‘essential’ or ‘basic’ deals.
Switching providers doesn’t mean you lose your phone number for good, however. Just text ‘PAC’ to 65075 to be sent a code that, when given to your new provider, switches your number over within one working day.
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