Archive: MoneySavingExpert's Money Tips Email

CONFIRMED
Huge 14% broadband & mobile price hikes due April. BT, EE, Plusnet, TalkTalk, Three, Shell & more
Act NOW to beat 'em

An intro from Martin: "My heart sank last Wed, as the latest 10.5% CPI inflation was announced, as it's that December figure which many broadband and mobile firms base their April increases on. Yet they don't stop there - most lump a further 3 or 4 percentage points on top.

"Of course, just because it's in the contract, they don't need to invoke these rises, but since then we've had confirmation after confirmation that they're doing just that. Hitting many already struggling people hard.

"I wish the regulator Ofcom would crack down on this, though I don't hold out much hope. Above-inflation mid-contract rises are unfair and they push future inflation higher...

"For those in contract, then as the price rise was part of the contract, there's little you can do except diarise when that contract ends, and take action then. But the most important thing I can say to you is...

16 million of you are out of contract - free to leave - so ditch & switch or haggle and you may halve what you pay
(that's what the info below will help you to do).

"Just to be plain, you'll still be hit by the price rise, but for broadband, for example, 14% on £20/month is a lot less than 14% on £40/month. So now, on to the MSE team to run through what's out there right now."

The best deals come from short-lived promos you can't get direct from firms, involving cashback or vouchers. The best thing to do is use our broadband comparison to find top deals where you live as what's available is postcode dependent, but the pick of 'em right now are...

5 quick broadband switching need-to-knows:

1. If you want to stay where you are, haggle. Jump to haggling tips.
2. Slow broadband? Test your speed. Do a broadband speed check, both Wi-Fi and wired (to see if it's your signal or your router that's the issue), and try our eight speed-boosters.
3. At least 50% of customers must get the advertised speeds at peak times. All providers above also tell you the estimated max speed you're likely to get before you sign up.
4. Switching usually only means about two hours' downtime. You're told the switch time in advance and most won't need an engineer to visit. With switches to or from Virgin it's more likely. 
5. Members of cashback sites can sometimes undercut deals. More in Top cashback sites.

Many are already paying far too much on their mobile bills, and that's before April's price rises. Here's our quick checklist to ensure you're not being ripped off...

Step 1: Check if you're out of contract - millions are overpaying. When your contract ends, you'll usually pay the same for your airtime, or be moved to a Sim-only plan - which is unlikely to be the market's cheapest. Some could even still be paying the same handset and airtime rates, despite having paid off the phone. If you're out of contract, the power's in your hands, so read the steps below. If you're still in contract, take action when it's finished.   

Step 2: Are you willing to switch network to get a much cheaper deal? If you're happy with your phone, check if you could save by switching Sim - the little chip in your phone that gives it its identity. And don't pay for more data than you need. Ofcom says the average mobile data use is 5.6GB a month - try our Data Calculator if you're not sure how much you use. 

Here are examples of what's out there for new customers right now - all have unlimited mins & texts:

If you're out of contract, your network must let you unlock your phone for free. And it's easy to keep your phone number. Just text PAC to 65075 on your existing phone, and then give the code you're sent to the new provider, and it can move your number to the new Sim.

Step 3: Worried about moving as you want to stay on the same network? How to switch and keep your signal. Smaller networks 'piggyback' on the signals of the big four: Vodafone, Three, O2 and EE. So you can move to a cheaper provider and keep the same signal. Though do note not all smaller firms offer 5G, Wi-Fi-calling or 4G-calling, so do check what's included. Our Cheap Sims tool allows you to filter by network and flags up what services each provider offers (see who piggybacks on who).

Step 4: Need a new phone? How to bag the cheapest deal. Sticking with your current handset and switching Sim is cheaper and greener. But if you need a new phone, make sure you do it the cheapest way (never just go direct to a network). 

The 'buy a phone & Sim separately rule' is not clear-cut anymore, so our cheapest handset tool includes this option and also buying via a contract, across most phone models (you can opt to see refurbs too). And if you're not set on one model, find me a phone lets you say what you want, then finds the cheapest handsets that fit the bill. And our find me the best phone within my budget tool does just that.

If you're out of contract or nearing the end, you're in a powerful position to haggle, so use these price rises as a clarion call to take action. The key here is to make your existing provider prove it wants to keep you. It's a bit of fiscal flirting, if you like.

The likelihood is, for broadband and mobiles, that you'll struggle to match the cheapest switching deals from the tables above, but you should be able to bring your price down a chunk. In fact, in our December poll, the vast majority of those who'd tried haggling with the big telecom firms were successful... 

- Over 80% success: Virgin Media, Sky
- Over 70% success: TalkTalk, Three, Sky Mobile, O2, Virgin Mobile
- Over 60% success: Plusnet mobile & broadband, EE

It can really pay off, as Dorothy emailed: "Thank you so much for your advice on haggling. I called Virgin Media as our bill had gone up to £119.50/month. I was offered £82/month at first, but called back and now we are paying £69/month [saving £606 a year]. I'm delighted as this does help with our budget as we are retired."

Here's how you can do it too...

Step 1: Benchmark the cheapest price elsewhere. If you want to haggle, tooling yourself up on the best the competition is offering, both so you know what to ask for, and because it can be used in discussions, is the right place to start.

Step 2: Call up - and be polite and charming, especially at the moment, when call centres are busy. Remember to use chutzpah, cheek and a smile. You're asking for a discount, and your provider's as much within its rights not to give one as you are to leave. Aggression or anger won't help anyone.

Step 3: Use the phrases that pay. You may find that it only offers a small discount at first, but if you try phrases such as "I've worked out my budget and my max is £X/month, can you do that?", or "Sky / Plusnet / TalkTalk and others can do it for less, can you beat that?", it may go further. If not, just say you'd like to think about it.

Step 4: If nothing's worked so far, ask to be put through to disconnections (known internally as retentions). This department's the Holy Grail of haggling - where operators have serious discount-giving power.

Step 5: Don't panic if it calls your bluff and says it'll disconnect you. Some people worry and get nervous to try this in case they're disconnected. Martin's easy 'get out of jail free' card on this is the phrase: "Hold on, I'll call you back on that. I'd like to check with my wife / husband / dog / goldfish first."

Step 6: If it really won't play ball, vote with your feet. If you don't get what you want then you should seriously consider leaving. Sometimes providers can give in at this stage and offer a stonking discount.

These are the key tips, but we've more info on how to maximise your discount in Broadband haggling and Mobile haggling.

PS: If you're struggling to pay your bills, always speak to your provider - it may be able to put you on a repayment plan.