Financial guru Martin Lewis has unveiled a remarkably simple yet potentially lucrative method that could help millions of Britons slash their mobile phone expenses by hundreds of pounds each year. The consumer champion emphasised that a significant number of people are unknowingly "overpaying" substantial sums on their monthly bills, often due to remaining on outdated contracts.
The Five-Digit Number That Could Unlock Major Savings
In a detailed update to his widely followed Money Saving Expert (MSE) website, Lewis highlighted a critical issue: over 14 million mobile users are currently out of contract. Many of these individuals continue paying for bundled handset and tariff deals long after their initial agreement has concluded, resulting in unnecessary costs.
"It's time for a mobile masterclass," Lewis stated, "as many are overpaying £100s a year - and even more if you factor in mobile insurance." He pinpointed a primary culprit: customers staying on plans where they have finished repaying for their phone, yet their monthly charge remains unchanged.
How to Check Your Contract Status Instantly
Lewis provided a straightforward, free solution for anyone uncertain about their contract end date. By simply texting the word "INFO" to the five-digit number 85075, users can receive immediate clarification on their status. This service is mandated by telecoms regulator Ofcom, requiring providers to disclose whether a customer is out of contract.
"Just five digits tells you if you're out of contract - to see if you're free to switch and save," Lewis explained. He advised looking for a response indicating "a £0 early termination or cancellation charge," which confirms you are free to move to a better deal without penalty.
Important exceptions exist: customers with Three, Smarty, or iD Mobile may need to reply with their date of birth for identity verification. Additionally, this service does not function for multiple-phone contracts, though Lewis noted that if you have been with the same provider for over two years, you are likely out of contract and should investigate further.
Switching to SIM-Only: The Path to Substantial Reductions
Once confirmation is received that a contract has ended, Lewis strongly recommends considering a switch to a SIM-only plan. These deals cover only calls, texts, and data, eliminating the cost of handset repayment, which often constitutes the bulk of a standard contract fee after the initial term.
"While those who stick with one firm have seen big year-on-year inflation increases, at the same time the cost of Sim-only deals has plummeted," Lewis observed. He illustrated the potential savings with current market examples, all of which include free EU roaming:
- Lebara (using Vodafone's network): 5GB for £2.68/month, 35GB for £3.47/month, or 100GB for £6.30/month.
- iD Mobile (on Three's network): 50GB/month for £3.80/month or 120GB/month for £6.21/month.
These figures starkly contrast with the £30 or more many continue paying for expired bundled contracts. One MSE reader, Angela, reported saving £304 in a single year after switching, also gaining improved 5G coverage and cheaper holiday roaming.
Why Overpayments Persist and How to Combat Them
Lewis expanded on the systemic reasons behind these widespread overpayments, describing some practices as "dodgy." He explained a common trap: customers sign an all-inclusive deal for, say, £30 monthly. Once the handset cost is repaid and the contract ends, some providers, particularly resellers rather than major networks directly, fail to reduce the monthly charge, leaving customers paying the same amount for far less.
"It should be banned. It isn't," Lewis asserted, urging vigilance. "They will always send you an out-of-contract notification - check then." He advised consumers to self-police and to check on potentially vulnerable relatives or friends who might be affected.
This proactive approach, starting with a simple text to 85075, empowers individuals to take control of their mobile expenses, potentially reclaiming hundreds of pounds annually from unnecessarily high phone bills.
