Here’s the sneaky truth: when your phone contract ends, most providers automatically switch you to a sim-only deal called an “out-of-contract” tariff. But unlike a Netflix subscription, this one doesn’t drop in price—it actually soars. You might pay £30 a month for data you’re not using, while a new sim-only deal from the same provider costs £15. Lewis calls it a “loyalty penalty,” and it’s basically a tax on forgetting to set a calendar reminder.
Fun fact: the average overcharge in the UK is roughly £200 a year. That’s a pair of decent trainers, a weekend away in Brighton, or enough oat milk flat whites to fuel a small army of freelancers. Yet most of us treat our phone bills like an old gym membership—we just pay and ignore the silent drip of cash.
Why your phone company is basically a quiet ex-friend
Ever notice how your network provider is super chatty when you sign up, then goes radio silent the second your contract ends? It’s like that one person who only texts you when they need a favour. Providers are not legally required to remind you your contract is ending. In a 2026 ruling, Ofcom said they must send an alert, but only three to five months before the end date—not after. So you get a single SMS saying “your deal is ending soon,” then nothing.
Meanwhile, the meter keeps running at premium rates. This is the financial equivalent of letting a taxi meter tick over while you nap. Martin Lewis’s MoneySavingExpert team tested this: one user saved £240 a year simply by calling their provider and saying, “I’m leaving for a cheaper plan.” No haggling, just mild honesty.
