How to Save Money on Your Mobile Phone Bill in the UK

When you sign up for a mobile phone contract, you are typically paying for both the handset and the airtime bundled together. Once the initial contract period ends — usually 24 months — many networks continue charging the same amount even though the phone has technically been paid off. Ofcom data has repeatedly shown that millions of UK customers are in this position, overpaying by an average of several hundred pounds a year without realising it.

What to do when your contract ends

If you are happy with your current handset and do not want a new phone, switching to a SIM-only deal is almost always significantly cheaper. SIM-only plans from the same networks — or from virtual networks that use the same infrastructure — regularly offer 20GB or more of data for under fifteen pounds a month. That compares to thirty to fifty pounds on a typical handset contract. Over a year, the saving can easily exceed two hundred pounds.

Comparing SIM-only options

Comparison sites including Uswitch and MoneySuperMarket list SIM-only deals across all major UK networks and most virtual operators. Coverage varies by network and by where you live, so it is worth checking coverage maps for the networks you are considering before switching. Most SIM-only contracts are either rolling monthly or twelve-month deals. Rolling contracts offer more flexibility; twelve-month deals often come with a lower monthly price. If your circumstances are likely to stay stable, the twelve-month deal is usually the better value.

Calling your current provider

Before switching, call your current provider and tell them you are looking to leave. Most networks have a retention team whose job is specifically to keep customers, and they have access to better deals than the ones advertised publicly. Mention the price you have seen elsewhere. You may be offered a reduction on your existing plan, a SIM-only upgrade, or a new handset at a better rate. This call takes ten minutes and can result in a meaningful monthly saving without having to change your number or set up a new direct debit.

Keeping your number when you switch

Switching network does not mean losing your phone number. Request a PAC code (porting authorisation code) from your current provider — they are required by law to give you one immediately. Give the PAC code to your new provider and your number will transfer over, usually within one working day. The process is straightforward and the whole thing can be done without speaking to anyone if you do it online. Your old contract ends automatically when the number moves.