With the cost-of-living crisis continuing to worsen, people across the UK have been urged to follow a simple tip that could save on average more than £156 a year — and even as much as £360.
According to research by virtual network operator iD Mobile, up to a third of mobile phone users in the UK could be wasting a significant amount of money by not doing anything once their contract finishes.
As reported by Hull Live, the majority of phone contracts in the UK are priced to cover the cost of the mobile as well as add-ons such as minutes, texts, and data.
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However, the monthly cost of a contract for the same phone can vary dramatically between providers — by as much as £30.
In addition, the monthly cost does not always automatically go down once you have paid off the price of the handset, meaning you may be paying more than you need to.
Although it is a legal requirement that networks let their customers know when their contract is finished, nearly 20% of people are unaware when it ends.
Even then, 28% intend to keep everything the same — having the same phone on the same plan — without looking at their options.
Meanwhile, 20% are under the impression it would be cheaper than switching to a new provider, while a further 18% won’t be upgrading their handset or switching networks as they think it is too much of a hassle – effectively paying more than actually need to.
In addition, 39% of people in the UK would not consider switching to a lesser-known mobile network, with 50% concerned that the network coverage may not be as good.
This is despite the fact that the lesser-known providers are all powered by the one of UK’s four major networks, benefiting from the same level of coverage.
While 95% say they are generally happy with their current plan amid the cost of living rising, more than half say they feel they are paying too much for their package.
Despite a reluctance for people to switch providers, 76% would consider switching to a lesser-known network if they could save up to £13-£15 per month on their plan.
Moving to a lesser-known network can be a simple and effective method of saving money without compromising on your choice of handset or add-ons — and the average amount saved by moving to a smaller provider is £13 a month.
Personal Finance Expert Sue Hayward said: "Every penny counts in the current cash strapped climate and it’s shocking that one in three of us seem happy to waste a whopping £156 a year on average, on our mobile bills, and in some instances over £360 a year, according to iD Mobile’s research.
"Despite one in two of us thinking we overpay for our plans, we seem reluctant to shop around and switch when comes to our mobile provider; which is curious considering how open we are to switch providers on other household bills to save money.
"Nearly half of us don’t think our mobile network rewards our loyalty – so it may be time for consumers to put loyalty aside, and switch providers to save some cash.
"Taking a few minutes to check your mobile contract, haggling for a better deal or switching to a provider like iD Mobile, can pay dividends and put pounds back in your pocket”.
With the cost-of-living increasing and starting to hit families, we’re looking to save money in other ways. 46% of adults are set to reduce their heating and electricity use, a third are planning on cutting down eating out and socialising and a quarter are driving less.
The research also revealed that a fifth (18%) of 18 to 34-year-olds still rely on their parents to pay for their phone.
