According to the expert, “many” people are overpaying on their phone bills
Brits could save “hundreds of pounds” by texting a five-digit number. A financial expert has explained that this could help you switch to a cheaper contract.
In an update to his Money Saving Expert (MSE) website, Martin Lewis warned that many people could be massively “overpaying” on their mobile phone bills. Part of the reason for this is that you could be staying with a plan even though your contract has ended.
This could mean you’re still paying for the phone itself and not just the services, when you could choose to opt for a SIM-only contract. It also prevents you from shopping around for better deals.
On MSE, Martin said: “It’s time for a mobile masterclass (even though I’m typing this at my desk), as over 14 million are out of contract, many of whom are overpaying £100s a year – and even more if you factor in mobile insurance.” First you should check to see if your contract has ended.
If you don’t have any paperwork or emails that tell you this there is a number you can text to find out. You should text the word “INFO” to 85075.
Martin explained: “Just five digits tells you if you’re out of contract – to see if you’re free to switch and save. Text ‘INFO’ for free to 85075.
“It’s an Ofcom-required service that firms must then tell you if you’re out of contract. You’re looking to see something along the lines of ‘a £0 early termination/cancellation charge’ to find out if you’re free to move.”
It’s important to note that if you’re with Three, Smarty or iD Mobile you need to reply with your date of birth to prove ID. Martin added: “On a multiple-phone contract?
“It won’t work, but if you’ve been with the same provider for more than two years, you’re likely out of contract – do check though.”
What to do if your contract has ended
If this process confirms your contract has ended you have the option to change to a SIM-only plan. This means you are only paying for your text, calls, and data, rather than the phone as well.
Martin said: “While those who stick with one firm have seen big year-on-year inflation increases, at the same time the cost of Sim-only deals has plummeted.” He shared some examples of cheap SIM-only deals currently on offer, which all include free EU roaming:
- Lebara (on Vodafone’s signal): 5GB ‘£2.68/mth’ | 35GB ‘£3.47/mth’ | 100GB ‘£6.30/mth’
- iD Mobile (on Three’s signal) 50GB/mth ‘£3.80/mth’ | 120GB/mth ‘£6.21/mth’
One MSE reader, Angela, said: “I switched to Lebara through your site, saving £27 a month for seven months, followed by £23 a month – that’s £304 this year. On top of that, I’ve now got 5G coverage, plus much cheaper roaming when I go on holiday! Thank you, MSE, this has made a noticeable difference!”
Martin expanded on why many people could be overpaying for their phone contracts. He said: “Why are the savings so big for some? It’s oft due to dodgy practice… People are often shocked by the huge savings reported here and on my TV show on mobiles. Yet it’s often as they’ve fallen for the same catch, and it’s one everyone needs be aware of (check on vulnerable people you know, too).
“Many sign up to an all-in-one handset and tariff deal at, say, £30 a month. Yet once the contract ends and the handset’s cost is repaid, some firms disgracefully don’t drop the cost. So you pay the same amount each month, even though the vast bulk of the cost was handset repayment. It should be banned. It isn’t.
“While this doesn’t happen with the big networks direct, it’s most common if you get one of the big network’s deals via a reseller (ie not direct) which is often far cheaper during the contract, but clearly far more after it. So we must self-police. They will always send you an out-of-contract notification – check then.”
For more information, see the MSE website here.
