Martin Lewis has issued a warning about a key household bill, cautioning that millions are paying several times more than necessary for a basic service. The money-saving expert estimates that a staggering 14 million in the UK are currently out of contract with mobile phone companies, resulting in phone bills that are four times higher than they need to be.

In an episode of his show earlier this month, he drew attention to the shocking case of a woman and her daughter who were each shelling out a whopping £150 per month on their current non-contract deal. While not having a specific agreement with a phone service can potentially prove costly for UK households, it also presents an opportunity to slash their bills to as little as £2, according to Martin Lewis - provided they follow three steps.

Firstly, check whether you're in contract.

Most phone contracts are designed to run for a set period, after which they lapse and are replaced by rolling monthly charges instead. Customers who are paying monthly may not have realised their contracts expired, and there is a way to check whether this is the case, Mr Lewis explained.

He advised: "First thing, text INFO for free to 85075 to check. 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. What it will then tell you is whether you have any early termination or cancellation charges. You need those to be £0. That means you're out of contract and you can ditch and switch for free.", reports the Mirror.

Mr Lewis highlighted the importance of using price comparison sites over going directly to phone companies, stating: "They will always charge you more," and pointing out that the best deals are often found on price comparison sites with "short-term promo offers".

He pointed out the significant savings available, saying: "Look at these prices at the moment. Just look at these: [compared with] £24 a month, you've got a Lebara Sim on Vodafone's signal, depending which site you go to, equivalent of between £2 or £5 a month over a year, and it's a one-month contract, you can break it. £24 a month [versus] £2 a month. Ridiculous."

Emphasising that many customers are paying too much, Mr Lewis remarked that prices for Sim phones have "gone down every year" and reminded that "switchers get the best deals".

Martin Lewis' MoneySavingExpert.com website has highlighted a nifty tip that could save consumers a hefty sum on their phone bills, thanks to Steve, a pensioner who shared his success story. He revealed: "I was paying £71 a month. I took your advice and swapped to another provider on Sim-only paying 65p a month for nine months and then £9.90 for the last three, making it an average of £2.97 for 12 months. This will save me £861 a year. I'm a pensioner so thank you."

In search of bargain deals?

For those looking to snap up a new deal and retain their existing number, there's a hassle-free solution. Switching providers doesn’t mean losing your familiar digits – you can keep your number with ease.

Just send a quick text saying 'PAC' to 65075, and you'll get a code back. Pass this code to your new provider, and they'll take care of transferring your service, ensuring you keep using the same number as before.

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