Phone bills, amongst other expenses, have been soaring, but money saving expert Martin Lewis has dropped a gem on how to cut your phone bill to a couple of pounds each month. In a recent episode of Martin Lewis Money Show Live, the expert informed viewers that "mobile contracts are rising, roughly 6% or about £2 a month depending," which also is the same for broadband.

He then touched on the banning of mid-contract inflation-linked price rises; this was implemented in January 2025, where Ofcom rules state that UK phone, broadband and TV companies must inform their customers of any price rises in pounds and pence "prominently and transparently". However, Martin Lewis explains that this change only applies to those on new contracts.

He says: "But that is only for people on new contracts, depending on exactly when. If you got a new contract this year, that may be you, in which case they would've told you when you signed up in pounds and pence how much it was going to increase at that point."

The money saving expert noted that many people in the UK probably have existing contracts that started ahead of the rule change and, therefore, are most likely subject to the inflation-linked price hikes.

Before letting viewers know how to make these savings, his "big message" to those watching is that "14 million of you are out of contract free to ditch switch, more or do whatever you like or make them pay for your business."

Martin's response was promoted by Gary, who questioned how easy it would be for his 83-year-old father to switch providers after his current one "pushed his new rate up to £24 per month."

The expert followed up with the necessary steps to slash those pounds off your phone bill. According to Martin, the first thing to do is text "INFO" for free to 85075. "If you're on Three, ID mobile, or Smarty, then it'll reply back and you'll need to confirm your date of birth, don't worry about that just do it," he adds.

The information is supposed to tell you whether you have any early termination or cancellation charges, which Martin says you need to be £0, meaning "you're out of contract, and you can ditch and switch for free."

The next thing to do is use comparison sites, warning people to not go directly to the mobile company as they will always charge more whereas the comparison sites do short-term promotion offers. He then revealed some of the best deals after factoring the vouchers and bill credits and coming up with an average for the year.

"Just look at these £24 a month, you've got Lebara Sim on Vodafone signal, depending which site you go to, equivalent of between £2 and £5 a month over a year, and it's one-month contract, you can break it. £24 a month, £2 a month. Ridiculous," he reveals.

He emphasised that most people are "massively" overpaying further explaining that sim prices have actually gone down every year and that the cheapest sims are as low as £3 a month. In contrast, contracts are going up every year and so "switchers get the best deal".

EE, O2, Vodafone and Three are the only mobile phone companies in the UK; other providers use their signals, explained Martin, using the example of Lebara and Vodafone, and so using these comparison sites allows mobile phone users to find the cheapest provider depending on their preferred signal.

The point Martin made was how easy it is to keep the same phone number. "Once you're ready to switch text "PAC" to 65075, you'll get a code, you give that to your new provider and that way you keep your existing number."

According to the money-saving expert, providers will also try and give you a decent deal to try and keep you on, which if you are looking to switch, and therefore, you can "haggle" them a bit more if you want to stick with your existing provider.