Sidestep mobile phone charge increases

Mobile phone costs will rise by a third for Vodafone Pay As You Go users from next month. On 1 September, contract customers who exceed their monthly allowances will pay 25% more for every minute used over their agreed usage.

Vodafone's increase follows similar hikes by O2 and T-Mobile, which raised their tariffs in July affecting 19 million and 17 million customers respectively. Vodafone's price rise will affect seven million pre-pay customers and 11 million contract clients.
However, the hike will not affect customers who keep within their free-minutes allowances. Those who don't could face hefty surcharges. Users who exceed their allocated call limits by 30 minutes a month and send 20 texts over their monthly allowance will fork out an extra £100 a year.

David Kuo, Head of Personal Finance at money website Fool.co.uk says: "We can thank the European Commission for the price increases. The hikes were only to be expected following the European Commission's caps on roaming charges.

"Cunning rabbits have many bolt holes, and trying to cap operator charges is pointless. Curbing prices in one area will inevitably result in price increases elsewhere. By cutting the cost of using mobile phones abroad, the EU has pushed up prices for millions of customers who never use their phones outside of the UK.

"We urge contract customers to beware of slipping over their allocated monthly allowances. Exceeding your inclusive minutes by just a minute a day is easily done, but could prove costly."

Fool.co.uk's top tips to cut your mobile phone bill

1. Gauge your usage by looking through old mobile phone bills to see if you regularly exceed your monthly allowance.

2. If you frequently go over your allowance then switch to a better package with your current provider.

3. Ask you current provider for your Porting Authorisation Code (PAC), and shop around for competitive deals with other providers.

4. Ditch your mobile phone insurance - paying £60 in premiums a year for a phone that is only worth £100 is pointless.

5. Use the built-in counters on your phone to monitor your monthly usage.

6. Buy a cheap SIM card when are abroad. Alternatively, switch off your phone until you are back in the UK.