Simple Strategies to Reduce Your Mobile Bill
Over 40 million mobile and broadband users in the UK are about to face price hikes of up to £42 a year, set to take effect within days. However, many customers can sidestep these increases. According to Uswitch, these changes will collectively add an estimated £75 million to monthly bills, affecting both in-contract and out-of-contract customers.
These price adjustments are part of what is being termed “Awful April.” For broadband customers with inflation-linked contracts, the average annual increase is projected to be around £21.99. Those on newer fixed-price contracts may see their bills rise by as much as £42 per year.
Ofcom has mandated that telecom companies clearly outline mid-contract price increases in monetary terms rather than tying them to inflation rates. The specifics of your contract will depend on when it was signed. For instance, EE mobile users who entered into a contract on or after May 10, 2024, will incur a monthly increase of £1.50 on their airtime plan. In contrast, customers who signed up before this date will see their bills rise in accordance with December’s Consumer Price Index (CPI) inflation rate of 2.5%, plus an additional increase ranging from 3.9% to 6.4%.
The silver lining is that if you’re currently out of contract, you have the opportunity to avoid these price hikes by switching providers. Uswitch data, based on Ofcom statistics, indicates that over nine million households are out of contract regarding their broadband services, while an additional 33 million are in a similar situation with their mobile deals. Making the switch now can help you secure a more favorable deal and evade the upcoming April increases.
How Can I Determine If I’m Out of Contract?
Mobile customers looking to check their contract status can simply text “INFO” followed by their date of birth in the format DDMMYY to 85075. You will receive a text confirming whether you would incur an “early termination fee.” Such fees only apply to those who are still within their contract period. If no early termination fee is mentioned, you can confidently assume that you are out of contract.
For broadband customers, you can verify if your contract has ended by logging into your provider’s online account or app, checking your latest bill, or contacting your provider directly via phone or live chat. Typically, providers are obligated to notify you 10 to 40 days before your contract ends, usually through email, text, or postal mail.
How to Secure the Best Deal?
If you find yourself out of contract, there are several effective steps you can take to reduce your bill and ensure you’re not overspending. First and foremost, utilize comparison websites to explore the current offers available. It’s a well-known fact that new customers often secure the most attractive deals. Platforms like MoneySuperMarket and Uswitch enable you to customize your search based on factors like pricing, allowances, and service providers. This can assist you in making an informed decision on whether to renew your contract or switch to a different provider.
If you prefer to stay with your current provider, consider attempting to negotiate for a better deal. Often, renewing your contract can lead to significant savings compared to remaining on your existing tariff. The timing of your call can also impact the outcome; aim to contact customer service in the morning when representatives are likely to be more attentive and less stressed. A polite demeanor can go a long way; customer service representatives are generally more inclined to assist courteous callers.
It can be advantageous to research available deals in the market before making your call, as this knowledge can enhance your bargaining position. If your provider is unwilling to offer a better deal, don’t hesitate to mention your intention to leave. Many companies are eager to retain customers and may provide a last-minute discount or promotion to encourage you to stay.
Lastly, if you are receiving certain benefits, take the time to investigate social tariffs. These specially designed plans offer discounted rates for eligible customers, further helping to alleviate costs.
Providers With No Mid-Contract Price Rises
Several mobile networks offer plans that do not impose mid-contract price increases. Here are some networks typically known for this:
- Asda Mobile: Historically, Asda Mobile has not raised prices mid-contract, although this is not guaranteed.
- Giffgaff: Offers fixed pricing for the entire duration of its 18-month contracts, though prices for 30-day rolling contracts may fluctuate.
- Honest Mobile: Not only avoids price increases but also decreases your monthly bill over time (by up to 30% each month).
- iD Mobile: Generally protects SIM-only plans from mid-contract increases, but handset contracts may be subject to price hikes.
- Lebara: Offers fixed pricing for its 12-month contracts for the duration of the contract.
- Lyca Mobile: Provides fixed pricing for its 12-month contracts, pledging no increases until at least 2026.
- Sky Mobile: Guarantees fixed prices for the duration of the contract term; however, those who are out of contract may face price increases.
- Talkmobile: No mid-contract price increases are enforced.
- Tesco Mobile: Customers with a Clubcard Price contract can avoid mid-contract price hikes, though other contracts may be affected.