Pay As You Go price increases

Independent price comparison and switching service, uSwitch.com, estimates that at least nine million Orange and Vodafone customers could be hit by higher charges from July as changes are announced to Pay As You Go prices for both calls and texts.

From this Friday, Orange customers will be charged an extra 25% on calls to mobiles, landlines and voicemail, while the cost of texting will rise 20%. From 14th July, Vodafone customers on the Simply tariff will see the cost of calls to mobiles, landlines and voicemail rise 19% and the cost of texting rise 20%. Pay As You Go customers not on the Simply tariff will see the minimum call charge go up a staggering 66%.

Ernest Doku, technology expert at uSwitch.com, comments: "This is a real kick in the teeth for cash-strapped consumers that are already struggling to make ends meet. Pay As You Go customers are being hit with a double whammy of price increases - with both calls and texts going up, they will be counting the cost whenever they pick up their mobile phone. Orange and Vodafone are two of the biggest networks and it's our only hope that the others don't follow suit. As it stands we expect around nine million prepay customers to be affected by these hikes.

"The best advice for Pay As You Go users worried about spiralling bills is to take a look at your phone usage and see if you are better off moving onto a low value contract. A good solution for anyone nervous about getting tied in could be to keep your existing handset and take a 30-day SIM-only deal, which currently start from just £10 a month for 100 minutes and 500 texts. If you're happy to sign up for longer, there are some great pay monthly options out there and you could even land yourself with a free smartphone."