How to save money on broadband and mobile phone bills as prices rise

Millions of households will endure steep hikes of up to 7.9 per cent in the price of their broadband and mobile phone deals in just two months’ time.

These mid-contract price increases are set to take place from March to May and will see broadband and mobile firms pass on cost rises linked to inflation – often with an extra charge on top.

Not all broadband and phone firms will raise their prices this year, and not all tariffs will go up by a lot, but many homes do face significant bill changes.

The only silver lining is that these 2024 bill increases are dwarfed by the 14 per cent inflation-linked mobile and broadband price hikes many customers faced in 2023, due to higher inflation at the time.

But there are a few ways to lower the cost, which we explain here.

On the up: Broadband and mobile prices are about to rise, but you can still find a good deal

How to get a better deal on broadband 

1) Find out about your current contract

Before you can get a better deal, you need to be sure what you have got now.

If you have had broadband for a while it is likely that you may not know what connection speed you have, how long the contract lasts or even how much exactly it costs – particularly if it is bundled into your phone bill.

If in doubt, contact your supplier and ask for the precise details of your deal. If you have had broadband with the same company for more than a year then you may no longer be tied into a contract, as many only last 12 months.

Once out of contract, you are likely to be put onto a rolling monthly deal at a higher price – so this is a good time to negotiate a better rate or consider switching.

2) Work out what deal you need

Broadband deals vary in price depending on how much you can download and at what speed.

You are unlikely to need a costly service with unlimited downloads and unbeatable speed unless you are an avid computer games player, work with large files or perhaps have a large family.

Picking a broadband deal that is suitable for your needs, rather than one which exceeds them, will save you money every year.

Consider what you really need and try to avoid being persuaded by eye-catching deals.

Cut back: You may not need very fast broadband unless activities such as gaming are involved

3) Shop around

If you are at the end of your contract, your first point of call should be haggling with your existing supplier.

If you have come to the end of your contract and threaten to leave, they may offer you a better deal in return for signing a new contract with them.

Why are mobile and broadband bills rising? 

Every year between March and May, broadband and mobile providers can pass on reviewed prices to customers.

These rises can be linked to inflation, both RPI and CPI, or can be independent.

Most providers using inflation as a guide will add up to 3.9 per cent on top too.

For mobile customers, mid-contract price rises will affect the airtime part of their contract.

In most cases they are unlikely to beat their best new customer offer, but if you think a rival service is better then tell them and they may try to beat it.

If you do decide to move, list your basic criteria and look around.

4) Know your rights

You can leave your contract without paying an exit fee under certain circumstances.

For example, if your provider announces a price increase that was not in your contract, you are allowed to cancel and find a better deal.

Likewise, if your broadband speed is below your provider’s promised minimum, they have one month to fix the situation or you can leave with no penalties.

5) Check if you can get a social tariff

Social tariffs are cheap broadband deals for people on benefits such as Universal Credit.

These deals have existed since 2020, when industry regulator Ofcom demanded providers give low-cost options to the most hard-up customers.

How to get a better deal on your mobile phone 

1) Work out what you REALLY need

Mobile phone deals vary in terms of what you get and what you are charged.

If you are at the end of your contract, or want to take out your first one, think about what you really need from a mobile phone deal.

2) Consider a Sim-only deal

If you already own a mobile phone handset, or can get one cheaply, you may be able to save money with a cheap Sim-only deal.

Three mobile customer wins £250 after firm charges her for handset she already paid off 

A Three mobile customer has won back £250 from the firm after being charged for eight months for a phone she had already paid off in full.

This is because most mobile phone contracts sell you two things – the phone and the cost of using it. If you already have the phone, you just have to worry about the cost of calls, texts and data.

If you signed up to a deal that did include a handset some time ago, it is important to check you are not still being charged for a phone that has already been paid off.

Comparison experts Uswitch say customers can save up to £321 by taking out a Sim-only deal.

Users will need to make sure they don’t exceed the limits stated when they sign up. If they do, extra charges could apply – and these can be expensive.

3) Consider a refurbished phone

If you need your first handset, or to replace an existing one, see if there is a refurbished phone that suits your needs.

Refurbished phones have been overhauled by experts to replace broken parts and improve their operation. They work out considerably cheaper than new phones.

For example, an iPhone 15 Pro costs around £1,000 for a new handset, whereas refurbished models cost approximately £650 to £800.

These savings are even greater for less in-demand phones, or older models.

Most Samsung Galaxy phones released in the last five years normally cost no more than £200 when refurbished, for example, but cost up to four times that amount new.

Some retailers of second-hand phones offer guarantees, but not all.

Sim-only saver: If you don’t need a new phone, you could be able to pay much less

4) Be prepared to haggle

As your existing contract comes to an end, haggling with your provider can save you money.

Do your research first, and come prepared with some of the best deals you have found elsewhere.

Mention any issues you have had with your current provider, as this can give you an edge in any negotiations.

If you are not happy with whatever offer your provider makes you, say you are prepared to leave – this can lead to better deals miraculously appearing.

5) Be prepared to switch

If you cannot get a deal you are happy with from your current provider, consider switching away at the end of your contract.

6) Check if you can get a social tariff

Cheap Sim-only deals mean there are only three social tariffs for mobile phone customers:

Smarty social tariff

Smarty, a sub-brand of Three, offers unlimited calls, texts and data for £12 a month.

To be eligible, would-be customers need to be claiming Income-based Employment Support Allowance, Income-based Jobseeker’s Allowance, Income Support, Pension Credit or Universal Credit.

Voxi For Now tariff

This gives unlimited minutes and unlimited 5G data for £10 a month.

Customers need to be on Jobseeker’s Allowance, Universal Credit, Employment and Support Allowance, Disability Allowance or Personal Independence Payment.

EE Basics

This provides unlimited minutes with 5GB of data for £12 a month.

Customers will need to be claiming Universal Credit, the Guarantee Credit element of Pension Credit, Employment and Support Allowance, Jobseeker’s Allowance or Income Support to qualify.