How to cut your mobile phone bill

Last updated: 17 July 2026

If your mobile contract has ended and you have done nothing since, you are probably paying too much. The fix takes about ten minutes. You send one free text to check where you stand. Then, if you want to move, one more text gets you a code. Give that code to a new provider and the switch happens within one working day. You keep your number.

This guide walks you through it, step by step. It also covers cheaper deals for people on certain benefits, and the rules that now protect you from surprise price rises.

The out-of-contract trap

Most phone contracts bundle two things together: the phone itself, and the service (your calls, texts and data).

Say you sign a 24-month contract at £45 a month. Part of that £45 pays off the phone. Part of it pays for the service. After 24 months, the phone is paid for. It is yours.

Here is the trap. On many older-style contracts, your bill does not drop when the phone is paid off. You keep paying the same £45. You are now paying full price for a handset you already own.

This is not a small problem. When Ofcom (the UK’s communications regulator) looked at this in 2020, it found around 20 million people were out of contract on their phone, broadband or TV deals. It estimated out-of-contract mobile customers could save around £75 a year on average by moving to a better deal — and some could save more than £150.

Since 15 February 2020, Ofcom’s rules have required your provider to warn you before this happens. Between 10 and 40 days before your contract ends, they must send you a text, email or letter. It has to tell you:

when your contract ends
what you pay now, and what you will pay afterwards
their best available deals, including prices they only offer new customers

If you stay out of contract and do nothing, they must remind you about their best deals at least once a year.

So check your texts and emails. That notification may already be sitting there.

Step 1: find out where you stand

You do not need to phone anyone or dig through paperwork. Ofcom set up a free text service for this.

Text INFO to 85075.

Your provider must reply, usually within a minute. The reply tells you whether you are still in your minimum contract term, and whether you would owe anything to leave — for example, an early exit fee or money still owed on your phone.

Sending this text does not cancel anything. It is just information. You can send it as many times as you like.

If the reply says you are out of contract and owe nothing, you are free to switch or renegotiate today.

SIM-only: the usual money-saver

A SIM-only deal gives you just the service — calls, texts and data — with no phone included. You put the new SIM card (the small chip that connects your phone to a network) into the phone you already own. Many deals now use an eSIM, which is the same thing built into the phone, set up with a QR code instead of a physical chip.

Because you are not paying off a handset, SIM-only deals cost much less per month than bundled contracts. As of July 2026, plenty of SIM-only plans with generous data cost under £10 a month. Many run on 30-day rolling terms, so you are never locked in for long.

How does that compare with a bundle? A bundled contract is not automatically bad value. It is a phone bought on credit plus a service plan, wrapped into one bill. Sometimes that works out fine. The problem is that the two parts are mashed together, so it is hard to see what each one costs.

A rough way to check any bundle: find the phone’s price if you bought it outright. Divide by the number of months in the contract. Add the price of a similar SIM-only deal. If the bundle costs noticeably more than that total, you are paying extra for the convenience.

Two honest catches with SIM-only:

Credit checks. Pay-monthly SIM deals usually involve a credit check, though it is a softer hurdle than financing a £1,000 phone.
Coverage varies. Every network’s signal is different where you live and work. Before you switch, check the new provider’s coverage checker for your postcode. A cheap deal is no good if you have no bars in your kitchen.

How to switch by text and keep your number

Since July 2019, Ofcom’s “text-to-switch” rules have made leaving simple. You never have to have an awkward phone call with your current provider.

To keep your number: text PAC to 65075.

PAC stands for Porting Authorisation Code. It is just a short code — letters and numbers — that lets your new provider bring your number across.

To get a new number instead: text STAC to 75075.

STAC stands for Service Termination Authorisation Code. Use this if you do not want to keep your old number. It closes your old account cleanly, so you are not left paying for a SIM you no longer use.

Either way, here is what happens:

Your current provider must text the code back to you, usually within a minute. The reply must also spell out any early exit charges or money left to pay on your handset, and any credit you would get back.
The code is valid for 30 days. Nothing happens until you use it. If you let it expire, nothing changes and you can request another later.
Sign up with your new provider and give them the code. They handle everything from there.
The switch must be completed within one working day of the new provider getting your code.

One more protection worth knowing. Providers are banned from charging you for a notice period that runs on after your switch date. Before 2019, people often paid for their old SIM and their new one at the same time for a month. That double-billing is no longer allowed.

If you were leaning towards a new provider anyway, requesting a PAC has a side effect: your current provider knows you are serious about leaving. Some people find a better offer appears at that point. You are under no obligation to take it — and we cannot tell you which network to choose. Compare deals on the things that matter to you: monthly price, data, coverage at your postcode, and contract length.

Social tariffs are cheaper broadband and phone deals for people claiming certain benefits. They run on the same networks as normal deals — same signal, same infrastructure — just at a lower price.

Who qualifies varies by provider, but the main qualifying benefits are:

Universal Credit
Pension Credit
Employment and Support Allowance
Jobseeker’s Allowance
Income Support

Some providers also accept Personal Independence Payment or Attendance Allowance. The person claiming the benefit usually needs to be the account holder.

Ofcom keeps an up-to-date list of every social tariff on its website — search “Ofcom social tariffs”. On the mobile side, Ofcom’s list includes SMARTY’s Social Tariff at £12 a month and VOXI’s “For Now” plan at £10 a month (both unlimited-style plans; prices as listed by Ofcom, checked July 2026). We are naming these because they are on the regulator’s list, not because we recommend them — check the current list and compare before you decide. Broadband social tariffs on the same list range from roughly £10 to £25 a month.

Note that some ordinary SIM-only deals cost less than some social tariffs. A social tariff is not automatically your cheapest option — it is one more thing to compare. Where social tariffs shine is on broadband, and in what they leave out: they typically come without mid-contract price rises and without exit fees.

If you are on a normal contract and start claiming a qualifying benefit, ask your provider about moving. Ofcom says providers may let you switch to a social tariff without a penalty — ask before you assume.

Mid-contract price rises: the rules changed

For years, many contracts included a sneaky clause: every April, your price went up by inflation plus a few percent — for example “CPI + 3.9%”. You could not predict it, and most people did not know it was there. Ofcom found only 12% of mobile customers were aware of, and understood, their inflation-linked rise.

That is now banned for new deals. Since 17 January 2025, any new phone, broadband or pay-TV contract must show price rises in pounds and pence, up front, before you sign. So instead of “CPI + 3.9%”, you will see something like “£1.50 more per month from April 2027”. Linking your price to inflation is no longer allowed on new contracts.

Two things to watch:

Old contracts keep their old terms. If you signed before 17 January 2025, an inflation-linked rise may still apply until you re-contract. One more reason to check where you stand.
“Pounds and pence” does not mean “no rises”. Most big providers still build in a yearly increase — you just know the exact amount now. When you compare deals, add those planned rises into the real cost. A £10 deal that climbs to £13 is not a £10 deal.

Locked phones: mostly a solved problem

A locked phone only works with the network that sold it. It used to be a real barrier to switching — unlocking typically cost around £10 and the process often went wrong, with delayed or broken unlock codes.

Ofcom banned the sale of locked handsets from December 2021. Any phone sold by a UK mobile provider since then must work on any network.

If your phone is older than that, it might still be locked — some providers (including EE, Vodafone and Tesco Mobile at the time) sold locked handsets right up to the ban. Your current provider must unlock it for you if you ask. If you are out of contract, this should be free. Sort the unlock before your switch date, not after.

A quick way to check: borrow a SIM from someone on a different network and pop it in. If it finds a signal, your phone is unlocked.

Before you switch: a two-minute checklist

Text INFO to 85075 and read the reply. Any exit fees or handset balance owed?
Check your real data use in your phone’s settings. Most people pay for far more data than they use. Match your new plan to reality.
Check coverage for the new network at your home and work postcodes.
Note any perks you would lose — some bundles include streaming subscriptions or roaming extras. Decide if you actually use them.
Check the new deal’s built-in price rises and add them to the true cost.
Then text PAC to 65075 (keep your number) or STAC to 75075 (new number), and hand the code to your new provider.

One working day later, you are done. Same phone, same number, smaller bill.

Sources

Just so you know: this guide is information and journalism, not financial advice, and we don't recommend specific financial products. Your circumstances are your own — if you need personal advice, speak to a suitably qualified adviser. Information was correct at the "last updated" date above but things change; always check the linked primary sources.

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