Thousands of 1pMobile customers must now use £2.50 worth of credit every 30 days from today

Of 1pMobile's 120,000 users, around 50,000 joined before 1 January 2021, although 1pMobile says it expects around 8,000 to be disadvantaged by the shake-up. It says it's making the change to prevent users from building up large amounts of credit.

If you're now thinking of switching to a new pay-as-you-go (PAYG) provider, check out our guide to the Best PAYG deals.

Joined before 1 January 2021? You'll now need to spend a minimum of £2.50 every 30 days

Here's what's happening from today (1 October 2021) for those who signed up before 1 January 2021:

• You must use at least £2.50 in credit every 30 days. If you don't, 1pMobile will take up to £2.50 from your credit as a fee. For example, if you only use £1 credit within 30 days, 1pMobile will deduct an additional £1.50 to take you up to the £2.50 minimum.

  If you do not have at least £2.50 in credit when the £2.50 is due to be used by, 1pMobile will notify you and you will have 10 days to top up. If you do not top up, 1pMobile will deem the account as not needed and will disconnect your number. There's no penalty for cancellation in this scenario, though any unused credit will be lost. The minimum top-up you have to make will continue to be at least £10 every 120 days.

You must also continue to always have at least 1p worth of credit on your account. If your balance reaches zero at any point during the 30 days, 1pMobile will immediately notify you and you will again have 10 days to top up. If you do not top up after the 10 days, 1pMobile will disconnect your phone and close your account. There's no penalty for cancellation in this scenario.

Joined on or after 1 January 2021? You can continue to top up £10 every 120 days

Those who signed up on or after 1 January 2021 won't need to spend at least £2.50 in credit every 30 days and will continue to need to top up a minimum of £10 every 120 days. If they fail to do so, 1pMobile will notify customers and will give them 10 days to top up. If they fail to do this, they will also have their account closed and their number disconnected, and any unused credit will be lost.

These customers will also need to continue to ensure they have at least 1p topped up on their accounts at all times.

If you're unhappy, you can switch penalty-free

As 1pMobile is a PAYG service, it means you're not tied in to a contract and you can simply stop using it. If you have credit though, you will not be refunded.

Of course, make sure you can get a better deal elsewhere before you switch. 1pMobile currently charges 1p for texts, 1p/minute per call and 1p/MB for data. It is our top pick for those who simply want a spare, cheap Sim for emergency or occasional use. Currently, the next best buy is Asda at 4p for texts, 4p/min and 4p/MB. See more info in our PAYG mobile guide.

What does 1pMobile say?

Clifford Wetherall, managing director of 1pMobile, said: "We appreciate that this may not be welcome news to some of those customers affected by the change, but we are dealing with those enquiries as they come through to us. Our T&Cs for new and all other customers remain unchanged. For a majority of the customers who have been notified, they have accrued large credit balances on their services."