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

Millions of households will face steep increases of up to 7.9 percent in the price of their broadband and mobile phone contracts in just two months.

These interim price increases will take place from March to May and will result in broadband and mobile companies passing on inflation-related cost increases – often with an additional surcharge on top.

Not all broadband and phone companies will increase their prices this year, and not all rates will increase much, but many households will face significant bill changes.

The only positive point is that these bill increases in 2024 will be dwarfed by the 14 percent inflation-related price increases for mobile and broadband that many customers faced in 2023, due to higher inflation at the time.

But there are a few ways to reduce costs, which we explain here.

How to get a better deal on broadband

1) Discover your current contract

Before you can get a better deal, you need to make sure you know what you have now.

If you’ve had broadband for a while, you probably don’t know what connection speed you have, how long the contract lasts or even exactly how much it costs, especially if it’s included in 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, you may no longer be locked into a contract, as many broadband connections only last twelve months.

Once the contract expires, chances are you’ll get an ongoing monthly deal at a higher price. So now is a good time to negotiate a better rate or consider switching.

2) Figure out which deal you need

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

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

Choosing a broadband deal that suits your needs, rather than one that exceeds them, will save you money every year.

Think about what you really need and try not to be convinced by flashy deals.

Cutting corners: You may not need very fast broadband unless activities such as gaming are involved

3) Look around

When your contract expires, your first point of contact should be negotiating with your existing supplier.

If your contract has come to the end and you are in danger of leaving, they may offer you a better deal in exchange for signing a new contract.

In most cases it’s unlikely they can beat their best offer for new customers, but if you think a competing service is better, tell them and they may try to beat it.

If you decide to move, write down your basic criteria and shop around.

4) Know your rights

Under certain circumstances you can terminate your contract without paying an exit fee.

For example, if your provider announces a price increase that was not in your contract, you may cancel and look for a better deal.

Likewise, if your broadband speed is lower than your provider’s promised minimum, they have a month to resolve the situation or you can leave without any penalties.

5) Check if you can get a social rate

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

These deals have been around since 2020, when industry regulator Ofcom required providers to offer low-cost options to the toughest customers.

How to get a better deal on your cell phone

1) Find out what you REALLY need

Cell phone deals vary in terms of what you get and what you’re charged.

When your contract expires, or you want to enter into your first contract, think about what you really need from a mobile phone contract.

2) Consider a SIM-only deal

If you already have a mobile phone, or can buy one cheaply, you may be able to save money with a cheap SIM-only plan.

This is because most cell phone contracts sell you two things: the phone and the usage fee. If you already have the phone, all you have to worry about is the cost of calling, texting, and data.

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

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

Users must ensure that they do not exceed the limits specified upon registration. If they do, additional charges may apply – and they can be expensive.

3) Consider a refurbished phone

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

Refurbished phones are overhauled by experts to replace broken parts and improve their functionality. They are significantly cheaper than new phones.

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

These savings are even greater for lower-demand phones or older models.

For example, most Samsung Galaxy phones released in the last five years normally cost no more than £200 when refurbished, but cost up to four times as much new.

Some used phone sellers offer warranties, but not all.

SIM-only savings: If you don’t need a new phone, you may be able to pay a lot less

4) Be willing to negotiate

If your existing contract expires, negotiating with your provider can save you money.

Do your research first and be prepared to get some of the best deals you’ll find elsewhere.

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

If you’re not happy with the offer your provider makes you, say you’re willing to leave. This can lead to better deals miraculously appearing.

5) Be willing to make the switch

If you can’t get a deal you’re happy with with your current provider, consider switching at the end of your contract.

6) Check if you can get a social rate

Thanks to the cheap SIM-only deals, there are only three social tariffs for mobile phone customers:

Smart social rate

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

To qualify, potential customers must claim income-related Employment Support Allowance, income-related Jobseeker’s Allowance, income support, pension credit or universal credit.

Voxi For Now rate

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

Customers must receive Jobseeker’s Allowance, Universal Credit, Employment and Support Allowance, Disability Allowance or Personal Independence Allowance.

EE basics

This offers unlimited minutes with 5GB of data for £12 per month.

Customers must claim Universal Credit, the Guaranteed Credit element of Pension Credit, Work and Support Allowance, Jobseeker’s Allowance or Income Support to qualify.