New research shows that nine million Brits could be missing out on substantial savings on their mobile phone bills by remaining with their long-term mobile phone operator.
One-fifth of UK mobile phone users have never changed their network provider and over a quarter more haven’t switched mobile provider for more than five years. However, Brits could be overpaying, with those that switched and saved in the last three years saying they saved more than £100 a year on average. In fact, more than three quarters of a million people saved upwards of £240 a year.
Paul Sweeney, Managing Director at Sky Mobile, said: “The traditional mobile market has been disrupted by new players, but many mobile users do not realise the benefits that can be had from switching to these newer providers, particularly relating to cost. Half of Brits say they want cheaper mobile bills – and they could save £100 a year if they switched."
Sky has partnered with personal finance expert and founder of the Young Money Blog, Iona Bain, to provide people with advice on how and when to switch. She says: “Switching things in life can be a daunting prospect which is evident in Sky Mobile’s research which highlighted that a staggering 47% of us actively try and avoid making changes in our lives.
“However, to save money, it is important to always be checking for the best deal, whether it’s with your utilities, gym membership or mobile phone service provider. Cutting corners or not being prepared to do the research can tie you in to a more expensive contract that prevents you from saving. I was shocked to hear that over a fifth of UK adults let their mobile contracts renew without shopping around for a better deal. Saving has become increasingly difficult over the past 12 months, so if you are soon to be out of contract, shop around, and assess the market”.
Iona Bain shares five top tips for people when it comes to switching:
1. Review how you use your phone. Our phone habits evolve over time, and you might now be overpaying on your contract if you’re not using your full data, text or call allowance.
2. Get organised. Figure out when your contract is coming to an end and put that date in your diary – you can then get switching in the 30 days leading up to your contract expiring.
3. Know your rights. You can switch mobile contract if your network raises prices above the retail price index (RPI) rate of inflation and this isn’t mentioned in your contract, or if you’re in the first 14 day cooling off period of a new contract you started online or over the phone. Some providers, like Sky Mobile, don’t implement mid contract price rises.
4. Budget right. When signing up to make monthly payments for 12, 18 or even 24 months, make sure you can set aside the amount for contractual payments even if your financial situation changes.
5. Don’t put it off. Switching contracts is really easy – you simply text PAC for free to 65075 on any network to get your porting authorisation code (PAC), then you simply give that switching code to your new provider within 30 days. You’ll then be switched within one working day.
