How to save money on your phone bill

How to save money on your phone bill

The best way to save money on your phone bill is to work out what you need and find the cheapest deal offering it.

You can do this by checking your monthly mobile phone bill, which includes the fixed cost of the data, calls and texts included in your plan, plus credit payments towards your handset and charges for any other usage such as international roaming.

Look at each section separately to see where you can save.

Check what you're paying for

You can see how much you are paying for your usage and your handset by checking your monthly bill. This should include your monthly plan and your handset credit agreement, as well as additional charges.

To find the best deal for you, you need to know:

• your recent data usage

• whether you are still paying for a handset

• what additional/out-of-allowance charges you are paying

• whether your minimum contract term has ended

That way, you can work out the best way to save by comparing what you actually use with what your current plan provides.

If, for example, your usage regularly falls below your allowance, you may be able to save by switching to a cheaper plan with lower usage levels. But if you often exceed your limits, it could be worth avoiding extra charges by upgrading to a more generous package.

Switch when you can get the same allowance for less

Shopping around for the best deal based on your personal usage is the easiest way to save money on your mobile phone bill. But first you need to find out if you are free to switch contracts.

Many mobile contracts run for a set period – say 12 or 24 months – during which time you face penalty charges if you switch to another deal.

However, if you’ve been with your provider for longer than your minimum contract term, or you are on a rolling monthly contract, you can generally switch free of charge.

When choosing a new mobile deal, it’s important to consider:

• data allowance – you can get unlimited data, but some of the cheapest deals cap your data allowance at 3GB per month

• contract length – contracts with which you get a flash new handset often run for 24 months

• annual price changes – many providers raise prices every Spring, so the monthly cost could go up twice during a 24-month contract

• total contract cost – check the total cost over the contract length, whether that be one, 12 or 24 months

In some cases, you may be able to halve your costs without compromising on your data allowance:

EE 50 GB SIM only (one-month rolling contract): £16/month

O2 50 GB SIM only (one-month rolling contract): £8/month
Monthly saving: £8 Saving over 12 months: £96

Compare smaller and lesser-known mobile networks

While most people have mobile contracts with well-known networks such as O2, Three and Vodafone, smaller providers offer comparable speeds and coverage – sometimes for a lot less money.

Many of these smaller brands, which include SMARTY, giffgaff, ID Mobile and Lebara, use the infrastructure of one of the UK's major mobile networks, so you may be able to get access to the same network at a lower price.

The table below illustrates this by comparing 100 GB deals including an iPhone 17 with a 256 GB capacity.

*With planned annual price increases in 2027 and 2028

The difference in annual cost also reflects the upfront cost paid towards the purchase of the iPhone 17. With Vodafone and ID Mobile this is £35, while with Mozillion it is £29. However, the ID Mobile contract is the only one to offer free EU roaming.

Choose a data allowance that matches what you actually use

As a nation, our appetite for mobile data has shot up in recent years. Regulator Ofcom’s 2026 Communications Market Report recorded average monthly mobile data usage of 10.7GB per month in 2025, an 11% increase on the previous year.

However, while some of us use a lot of data, others only consume a fraction of the average. That’s why it’s important to check your individual usage before choosing a deal.

To find out how much data you use, download your network’s app on your phone (if you haven’t already) or log into your account online. You’ll typically be able to see your data usage in the ‘Billing’ section.

If you find you’re not getting through your data allowance, and you’re on rolling contract or out of contract with your existing network, you can apply to switch to a cheaper deal with a lower data allowance immediately.

If you’re still under contract on a longer-term deal, set yourself a reminder to switch at the earliest opportunity.

How usage allowance affects your bills

Keep your current phone for longer

For some people, having the latest phone is important. But the newest flagship handset is generally one of the most expensive choices.

If saving money is your priority, it’s therefore worth considering a previous-generation handset that provides the features you need at a lower cost.

Or simply sticking with your existing handset and moving to a SIM-only contract with which you pay just the usage charges.

Most reasonably recent models continue to benefit from software updates – and the savings could be significant. Some lower data allowance SIM-only contracts cost less than £5 a month.

Cost of 25 GB of monthly data:

With a Samsung Galaxy S26 Ultra 5G = £38.99/month plus £5 upfront
on a 24-month ID Mobile contract = £472.88/year

SIM only = £6/month on a one-month giffgaff contract = £72/year

Annual saving from keeping your existing phone: £488.88

Set a spending cap

Most network plans offer the option to set up a spending cap that limits charges outside your standard monthly allowance.

Setting one up is a good way to prevent unexpected charges, such as those for additional data or international calls, pushing up your bill.

If, for example, you go overseas, having a spending cap in place means your data roaming charges cannot exceed a certain level, say £50.

You can adjust the size of the cap by accessing your account online or via your network’s mobile phone app.

Compare mobile deals

The best value mobile contract for you depends on how you use your phone, whether you need a new handset, and how much flexibility you want.

Once you’ve worked out what is important to you, MoneySuperMarket can help you find the right deal, whether you want a new phone on a major network or a SIM-only contract from a smaller provider.