Millions of mobile users are unknowingly paying far more than they need to – but one quick text could change that.
SIM card prices are now at record lows, with deals available for as little as £3 a month offering 35GB of data and unlimited calls and texts.
Despite this, many people are still paying over £30 a month, meaning they could be "overpaying by hundreds of pounds a year".
Martin Lewis has urged consumers to take action, sharing four simple steps to help people cut the cost of their mobile bills. He said the good news is that major savings are possible.
He explained that the mobile market is currently split. Those tied into contracts have seen prices rise steadily, while SIM-only prices have dropped dramatically.
Deals now include offers such as 150GB of data, unlimited texts and minutes, and EU roaming for around £5.50 a month.
On BBC Radio5 Live this afternoon, Lewis warned that anyone paying more than that should be reviewing their deal, as SIM-only costs have fallen significantly over the past year or two.
Step 1: Check if you're out of contract
Lewis said: "First thing, if you're in a contract, text INFO for free to 85075 to check. It's an OFCOM service so they should text back and tell you if your contract is still going on. What it will then tell you is whether you have any early termination or cancellation charges. You need those to be £0.
"That means you're out of contract and you can ditch and switch for free. That means you're one of 14 million people out of contract getting ripped off by not acting.
"If you‘re on Three, ID mobile, or Smarty, then it’ll reply back and you’ll need to confirm your date of birth.
Martin Lewis has explained a way Britons can slash their mobile phone bills
PAMy rule of thumb is that if you haven't switched provider in two years or more, you're almost certainly out of contract."
Step 2: Use price comparison sites to find the best deals
Lewis said: "Don't go direct to the mobile companies. They'll always charge you more. The best deals are always on comparison sites where they do short-term promotional offers. Many of these deals are short lived and only last a day or two because it changes all the time. Prices will differ on different days."
Mobile users can now access record-low SIM-only prices, with several providers offering large data allowances and unlimited calls and texts for just a few pounds a month:
- Lebara: 35GB data with unlimited calls and texts for the equivalent of £3.22 per month on average over a year
- O2: 45GB data for £9 a month on a 12-month contract
- iD Mobile: 150GB data for £12 a month, with a bonus £80 Amazon voucher works out to an average of £5.34 per month after cashback over the year
"Ditch and switch if you're paying more than that," Lewis said.
Lewis explained that it’s worth remembering that the UK only has four mobile network operators
GETTY IMAGESStep 3: Switch and keep your signal the same
Lewis explained that it’s worth remembering that the UK only has four mobile network operators: EE, O2, Vodafone and Three.
Every other provider uses one of these networks to deliver their signal. For example, Lebara runs on Vodafone’s network, while Smarty uses Three.
"This means if you're happy with your current signal, you don’t have to stick with your expensive provider. Instead, you can use a mobile comparison site to filter by network and find a much cheaper deal using the same signal.
"The signal strength stays the same, but your monthly bill could drop dramatically."
Step 4: Switch and keep your current phone number
Once a customer is ready to switch, they can text PAC to 65075 to receive a code. By providing this code to their new mobile provider, they can keep their existing number without hassle.
Lewis said: "I should also note there will also often try and keep you and give you a decent deal to keep you to stay if you're looking to switch.
"And you can haggle I'll talk more on how to do that in a moment if you want to stick with your existing provider."
Lewis explained that if you're paying over £6 a month and you're out of contract, look at ditching and switching
GETTYListener Heather followed the tips and applied for her PAC code.
Within five minutes, she received a call from EE asking her to stay. They offered her a £20 monthly discount on the spot. “All sorted in five minutes,” she said.
Martin Lewis replied: “£240 saved a year in five minutes that will do.”
He concluded: "If you're paying over £6 a month and you're out of contract, look at ditching and switching. it's worth looking at."
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