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Major phone networks to hike prices by up to 8% for millions, warns Martin Lewis – 3 ways to check you’re not overpaying
These come on top of hikes of up to 17.3 per cent last year
MARTIN Lewis has warned that major phone networks are set to hike prices by up to 8 per cent for millions.
BT, EE, O2, Sky, Three, Virgin Media and Vodafone have all confirmed rises for this spring.
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These come on top of hikes of up to 17.3 per cent last year.
Someone on a standard two-year contract paying £20 a month at the start of 2023 could soon be paying over £25 a month.
The Money Saving Expert previously called for above inflation mid-contract hikes to be banned.
During the Martin Lewis Money Show Live, he said: "What's weird here though is while the price you pay if you stick are going up, the prices are plummeting if you switch to a SIM only deal.
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"Step 1 is to text INFO for free to 85075 to check if you're free to leave.
"Step 2 is to use a cheap SIM comparison and step 3, to keep your number, is text PAC to 65075 and give the code to your new firm."
It comes after Which? warned that broadband customers could pay £150 more than expected due to "unpredictable" mid-contract price rises in 2024.
The consumer group analysed hikes from top providers on their 18 and 24-month deals.
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BT and EE customers who took out a contract in January 2023 could see some of the highest average price hikes of £147.43 and £147.31.
Vodafone and Plusnet customers could see rises of £122.38 and £117.87 respectively.
TalkTalk customers could see a smaller hike of £76.09 on average over the course of shorter 18-month contracts.
Virgin Media did not use inflation-linked price hikes in 2023 but some customers' prices did increase by an average of 13.8 per cent due to ad hoc price rises, according to Which?.
Which? argues that it is unfair for consumers to be signed up to deals which do not give them certainty about how much they can expect to pay over the course of their contract, and then face exit fees if they want to leave early.
How can I cut my mobile bill?
If you think your bills are too high and want to drive them down, the first thing to do is find out what the cheapest deal on the market is.
You can use this rate as a bargaining tool to get a better offer from your provider or as inspiration to switch providers.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, speed and provider.
Haggle a cheaper deal
If you've found a cheaper rate with another provider get in contact with your provider to see if they can match the price.
If you're unsuccessful at haggling, then you could threaten to leave.
Your provider might then feel more inclined to keep you by offering you a better deal.
Attempting to haggle will always make it easier to decide whether to renew your contract or move to another provider.
Switch provider
If you're not happy with the new charge and any attempt to haggle didn't go your way - switching providers can be the best way to save money on your telecom bills.
But if you do want to switch, make sure you know if you're in or out of contract.
If you're mid-contract though and wish to leave, bear in mind that you could face an exit fee so check with your provider for any charges.
Mobile phone users are stuck between "exorbitant" mid-contract price rises or high exit fees, according to Which?.
It found that an EE customer would face exit fees of £424.67 to leave a year early and Three’s customer would need to pay £379.46 to leave their contract.
Additionally, using the example of an EE customer who took out a 36-month contract for an iPhone Pro Max with unlimited data, Which? estimated the customer would pay an additional £105 for the handset over the next year due to the price increases.
Three customers face the lowest exit fees of £169.59 for leaving their contract a year early.
It's always worth asking your provider if they'll offer you something cheaper anyway so do give them a call even if you're in contract.
If not, make a note of the date your contract ends and tally up other deals that you could switch to.
Check if you can get a social tariff
If your household is on a low income it's also worth investigating social tariffs.
These broadband packages and discounts have been created for people who are receiving certain benefits.
They're often available to those on income support, Universal Credit, or disability allowance.
Around 4.2million households are eligible for these cheaper tariffs but only 55,000 are making use of them.
Voxi and SMARTY both offer these cheaper mobile phone contracts and prices start at £10 a month.
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