Use our tool to beat mobile and broadband bill rises in April and you could save up to £181
OVER 40 million mobile and broadband customers are set to face price hikes this April, despite having the option to avoid them entirely.
According to Uswitch, these increases are estimated to collectively cost customers an additional £75million per month, starting from April 1.
For broadband users on inflation-linked contracts, the April price hikes are expected to add an average of £21.99 per year.
Meanwhile, those on newer 'pounds and pence' plans - where fixed price rises are determined by the provider at the start of the contract - could see costs increase by as much as £42 annually.
Ofcom's latest regulations mandate that telecom companies must now display mid-contract price increases in clear pounds and pence, replacing the previous system of linking price rises to inflation.
However, whether your bill increases in fixed amounts or in line with inflation depends on the date you originally signed your contract.
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For example, Vodafone mobile customers who signed up for a new contract on or after July 2, 2024 will see their bills rise by £1.80 per month.
Whereas, those who signed up before July 2 will still see their bill rise by December's Consumer Price Index (CPI) inflation figure (2.5%) plus an additional 3.9%.
However, there's an easy way to sidestep these price hikes entirely -switch to a new provider if you're out of contract.
Uswitch's analysis of Ofcom data reveals that over nine million households are out of contract on their broadband deals, while a further 33 million are out of contract on their mobile plans.
By switching to a new broadband or mobile provider now, customers can secure a better deal and completely sidestep this year's price hikes entirely.
Sabrina Hoque, telecoms expert at Uswitch.com, said: "For the millions of mobile and broadband customers currently out of contract, now is the time to act before the April price increases kick in.
"If you don't know when your contract ends, you can usually find this information on your bill.
"It only takes a minute or two to check, and it could end up saving you a significant amount in the long run.
"Our data shows that switching to a new broadband deal after your initial contract has ended could save you £181 a year."
Mobile customers can check if they’re out of contract by texting "INFO" followed by their date of birth in the format DDMMYY to 85075.
You'll receive a text message confirming whether or not you would incur an "early termination fee".
These fees are only applied to customers who are still within their contract period.
If no early termination fee is mentioned, you can safely assume you're out of contract.
How does text-to-switch work?
TEXT-to-switch makes it quicker and easier to leave your mobile company by giving you control over how much contact you have with your existing provider.
This is how it works:
Text 'PAC' to 65075 - and keep your mobile number
- Text 'PAC' to 65075 to start the process
- The existing provider will text back within a minute and send the PAC number which will be valid for 30 days
- The provider's reply must also include information about any early termination charges or pay-as-you-go balances
- The customer then gives the PAC number to their new provider
- The new provider must arrange for the switch to complete within one working day
Text 'STAC' to 75075 - and get a new mobile number
- Most people want to keep their number when they switch but one in six do not
- Text 'STAC' to 75075 to get a service termination authorisation code
- The rest of the process is the same as above
Text 'INFO' to 85075 - and find out more
- If you are unsure about whether you will have to pay early termination charges text 'INFO' to 85075
- You will only receive this information
CUT YOUR COSTS
If you are out of contract there's a few things to consider to ensure you cut your bill.
Firstly, use comparison sites to familiarise yourself with what deals are available.
It's a known fact that new customers always get the best deals.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, allowances and provider.
This should make it easier to decide whether to renew your contract or move to another provider.
However, if you don't want to switch and are happy with the service you're getting under your current provider - haggle for a better deal.
You can still make significant savings by renewing your contract rather than staying on your current tariff.
If you need to speak to a company on the phone, be sure to catch them at the right time.
Make some time to negotiate with your provider in the morning.
This way, you have a better chance of being the first customer through on the phone, and the rep won't have worked tirelessly through previous calls which may have affected their stress levels.
It pays to be polite when getting through to someone on the phone, as representatives are less inclined to help rude or aggressive customers.
Knowing what other offers are on the market can help you to make a case for yourself to your provider.
If your provider won't haggle, you can always threaten to leave.
Companies don't want to lose customers and may come up with a last-minute offer to keep you.
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It's also worth investigating social tariffs.
These deals have been created for people who are receiving certain benefits.
Which providers come with no mid-contract price rises?
SEVERAL mobile networks offer plans with no mid-contract price rises.
Here are some networks that typically don't implement mid-contract price rises:
- Asda Mobile: Historically, Asda Mobile has not increased prices mid-contract, but this is not guaranteed.
- Giffgaff: Offers fixed prices for the duration of its 18-month contracts, but 30-day rolling contract prices can change.
- Honest Mobile: Not only avoids price rises, but reduces your monthly bill over time (by up to 30% each month).
- iD Mobile: SIM-only plans are generally protected from mid-contract increases, but handset contracts are subject to price rises.
- Lebara: 12-month contracts have fixed prices for the duration of the contract term.
- Lyca Mobile: Offers fixed prices for its 12-month contracts, with no increases pledged until at least 2026.
- Sky Mobile: Promises fixed prices for the duration of the contract term. However, those out of contract will face price rises.
- Talkmobile: No mid-contract price rises.
- Tesco Mobile: Tesco Mobile customers with a Clubcard Price contract can continue to avoid mid-contract price increases. Other contracts may be subject to price rises.