Millions could save by switching out-of-contract deals

About 10.4 million people in Britain are out of contract on their mobile or broadband and could cut their bills by switching, according to Uswitch. The comparison site said some households could save a combined £657 a year.

The biggest savings come from two areas. Broadband customers who move to a new deal save an average of £395 a year, while mobile users whose handset contracts have ended could save a further £262 by keeping their phone and switching to a SIM-only plan.

Research cited by Uswitch found that 13% of mobile customers and 6% of broadband customers said their contract had already ended. It also found that 12% of mobile users and 24% of broadband customers did not know when their contract ended, suggesting many may be paying more than necessary without realising it.

For broadband users, the issue is partly the premium charged after the initial term ends. Citing Ofcom data, Uswitch said out-of-contract broadband customers typically pay £7 to £9 a month more than those still within their minimum term.

November is a key month because consumers who signed two-year deals during the 2024 Black Friday sales are now reaching the end of those contracts, Uswitch said. In mobile, that can mean customers continue paying the same monthly amount even after the handset has been fully paid off.

Contract checks

Uswitch published a list of 10 checks for consumers considering seasonal offers on mobile, broadband and electronics. The advice focuses on understanding current charges, calculating the full cost of a deal, checking future price rises and making sure advertised discounts are genuine.

It also warned buyers to factor in add-on charges such as delivery fees, subscriptions and consumables, and to consider whether they need higher-end products or larger data allowances than they actually use. The group pointed to Ofcom figures showing that 39% of pay-monthly mobile customers are on plans with 50GB of data or more, while only 5% use that much.

Uswitch also highlighted cashback and reward offers, which can reduce overall costs but often have to be claimed within a set period. Missing those deadlines can wipe out the value of a bargain.

Switching options

Even households still within a broadband contract may not be locked in if the savings outweigh the cost of leaving. Uswitch said some providers, including EE, Quickline and Fibrus, are offering to cover exit fees for new customers.

Whether that makes sense depends on the size of the termination charge and the value of the replacement offer. Uswitch said customers should ask their provider for the exact fee and compare it directly with the savings available from switching.

The switching process has also changed. Under the One Touch Switch system introduced by Ofcom, broadband customers only need to contact the new provider, which then arranges the transfer and cancellation of the previous service.

Uswitch also urged consumers to check the effect of annual in-contract price rises before committing. New telecoms contracts must now state those increases in pounds and pence at the point of sale, and that can materially change the true cost over a two-year term, it said.

Some of the biggest apparent bargains may come from keeping an existing device rather than buying a replacement. Refurbished handsets and last year's models can cut costs, but the cheapest option may be to keep a current phone once the financing element of the contract has ended.

Simrat Sharma, Tech Expert at Uswitch, said: "Forget the phone in the shop window - the biggest Black Friday saving might be the contract you have already paid off and are still being charged for. Millions of people are out of contract right now, and a few minutes of checking could save them money for the next two years.

"If you signed a two-year deal in the Black Friday sales of 2024, your contract ends this month, and you are probably still paying for a phone you already own. Keep the handset, move to a SIM-only deal, and that is more than £250 a year back in your pocket.

"Still being in contract is no longer a reason to sit this one out. Several broadband providers will cover your exit fees if you switch to them this Black Friday, so check what your fee is and whether an offer covers it.

"Being out of contract is the one moment the power is in your hands. Text INFO to 85075, find out where you stand, and don't give that advantage away by doing nothing."