Pay-as-you-go mobile: Is it any good?

ByKim Staples
Man using phone

Not a fan of long-term phone contracts? There’s another option - a pay-as-you-go plan, which means less commitment and no paying for text allowances that you’ll never use.

What is a pay-as-you-go mobile plan?

Contract mobile plans give you an allowance of minutes, texts, and data that you can use each month for a set price. But with pay-as-you-go, you're only charged for what you use. Each individual text or minute on the phone incurs its own charge.

On pay-as-you-go, you add money to your SIM, and some of that credit is then spent every time you make a call, send a text, or use mobile internet. When it runs out (or when you think it might run out soon), you can top it up. Your network will tell you how to do this, but you can usually top up with a card, online, through an app, or at ATMs.

Pay-as-you-go tariffs

The following networks offer pay-as-you-go SIMs - here are the tariffs you can expect to be charged on each one. Click through to each provider for more (such as international calling tariffs) and to see what else they have to offer.

  Texts (each) Calls (to standard UK numbers) Data
Asda Mobile 4p 8p per min 5p per MB
giffgaff 6p (free to other giffgaff phones) 10p per min (free to other giffgaff phones) 20p per day up to 20MB, then 10p per MB
O2 14p 30-35p per min Maximum £1 per day
Talkmobile 4p 10p connection charge, free for 60 mins, then 8p per min 2p per MB
Tesco Mobile 10p 25p per min 10p per MB
The People's Operator 3p 4p per min 2p per MB
Three 2p 3p per min Free 150MB with every top up, then 1p per MB
Virgin Mobile 12p 35p per min £1 per day up to 100MB, then £1 per extra 100MB
Vodafone 14p 30p per min £2 per day up to 50MB, then 10p per MB

Prices correct at time of writing. Check with providers for accurate pricing.

Which is best: pay-as-you-go or pay-monthly?

Let's take a look at some cold hard numbers. Tesco Mobile has fairly inexpensive pay-as-you-go tariffs, and good value pay-monthly deals too. This one comes with 500MB of data, 250 minutes, and 5000 texts per month.

On pay-as-you-go, all that would cost you £612.50 each month. But on a contract, it's only… £7.50.

Of course, 5000 texts in a month is pretty ambitious. But that £7.50 would only cover 75 texts on pay-as-you-go - about two or three a day when spread out over the month. If you use your phone more than that, you're almost definitely better off on a pay-monthly plan, at least in terms of cost. Heck, if youeverconnect to 3G or 4G mobile internet, pay-as-you-go will get too expensive too fast.

Then again, anyone who only uses their mobile occasionally - say, a few times per month - can likely get better value with pay-as-you-go. It's also good for keeping complete control over how much you spend, and means you're not tied down to a contract. Plus there's no need for a credit check which is required for a lot of longer-term contracts.

One compromise between the two is a pay-as-you-go plan that lets you buy bundles of calls, texts, and data to use within 30 days. These have the flexibility of pay-as-you-go, but are as cheap and hassle-free as a contract. Take a look at Asda Mobile for plans like this.

Another compromise is a SIM-only contract with 30-day terms. You'll save money, but have the flexibility to change it around whenever you want. Compare SIM-only plans on our mobile site.


Recommended pay monthly deals 

The People's Operator 1 month

4GB data (4G)

500 minutes

Unlimited texts

£15.00 a month Get deal
Asda Mobile 1 month

100MB data (3G)

100 minutes

2000 texts

£5.00 a month Get deal
Three 12 months

500MB data (4G)

200 minutes

Unlimited texts

£8.00 a month  Get deal
O2 12 months

250MB data (4G)

250 minutes

Unlimited texts

£10.00 a month Get deal

See all SIM-only deals

What's good about pay-as-you-go?

  • Keeps costs low if you don't use your phone much
  • Lets you be completely flexible
  • No credit check necessary
  • Can get a new phone whenever you want
  • Lets you keep track of what you're spending

What's bad about pay-as-you-go?

  • Can end up expensive quite easily
  • Data is really, really expensive - not recommended for smartphones where you want to get Facebook notifications, use WhatsApp, and so on
  • Need to keep on top of your credit at all times
  • Topping up is hassle
  • Need to own a mobile phone or buy one outright


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