Double take: Uswitch warns 5 million out-of-contract mobile customers at risk of paying off handsets twice

• Brits at risk of spending an estimated £1.77bn^[1] per year on phones they already own
• One-fifth of handset customers (19%)^[2] are still paying back on a handset they have already paid for – an estimated 5M^[3] people nationwide
• Uswitch mobiles expert, Ernest Doku, reveals how switching to a SIM-only deal from a handset contract can help save customers money – and shares his top picks for SIM-only deals 

Uswitch warns that five million mobile users nationwide are at risk of double paying for their phones and could save on average £351^[4] a year with one simple hack. 

According to Ofcom data, a fifth of all handset customers (19%) are currently out of contract and are paying outdated prices that reflect the cost of paying back a phone, even though this ‘payback’ period has been completed. 

This ‘double paying’ means providers could be collectively cashing in an additional £1.77bn per year.

SIM-only deals can come with significant cost benefits and typically have a lower monthly rate for more data and minutes since no handset is included. Beyond savings, they can also offer greater flexibility with shorter-term contracts and many providers offer free EU roaming. 

Many even come with perks typically associated with higher-value handset contracts: Vodafone offers SIM-only deals with entertainment packages, including access to YouTube Premium or Amazon Prime. Lebara’s 1GB rolling contract-free one-month plan offers an impressive bundle of perks worth more than 20x the monthly cost of the plan itself (£3.95), including discounts at Iceland, Gousto and up to £50 for each referral.

Customers can text ‘INFO’ to 85075 to find out if they are out-of-contract and able to switch to a different provider without paying an exit fee.

Ernest Doku, Uswitch mobiles expert, shares advice on how to save money on your phone bill alongside his picks for top SIM-only deals:

“It’s important to remember that if your bundled phone contract includes a handset, you’re essentially ‘paying it off’ with your monthly phone bills. Once your initial contract ends, you’ve contractually finished paying off the phone. However, this won’t be reflected in your monthly payments, and you’ll continue to pay the same amount as before, if not more.

“If you already own a phone, switching to a SIM-only contract can save you a significant amount of money in the long run: they typically offer lower monthly rates since you’re not paying for a new phone.

“If you’re still in contract remember to set a reminder for when your contract ends. Even seemingly small costs can add up over time, so it’s crucial to review your contract and make changes as needed.

“If you’re unsure whether you’re in contract or not, simply text “INFO” to 85075. If you do choose to switch providers, you can still keep your old mobile number. Just text “PAC” to 65075 for free and you will receive your PAC code. Once you receive the PAC code from this number, give it to your new provider and they will do the rest.”