Is SIM Only Better Than a Contract in the UK? Pros, Cons & Cost Comparison

If you’re thinking about switching mobile plans, you might be wondering is SIM only better than a contract. In the UK, more people than ever are choosing SIM-only deals — mainly because they’re cheaper and more flexible — but they’re not the best option for everyone.

This guide explains whether SIM only is better than a contract in the UK, breaking down the pros, cons, real costs, and who each option is best suited for.

✅ What Is a SIM-Only Deal?

A SIM-only deal provides:

• Mobile data
• Calls and texts
• A SIM card

…but no phone.

You use:

• Your existing phone, or
• A handset you bought separately

SIM-only plans usually run on:

• 30-day rolling contracts
• Or cheaper 12-month terms

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✅ What Is a Phone Contract?

A phone contract bundles:

• A new phone
• A monthly mobile plan

into one monthly payment, typically over 24 months.

You’re spreading the cost of the phone over time, which can be convenient — but often more expensive overall.

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💰 Cost Comparison: SIM-Only vs Contract (UK Example)

Here’s a realistic UK example.

📱 SIM-Only

• £10–£20 per month
• Over 24 months: £240–£480
• Phone bought separately (e.g. £500)

Total cost: ~£740–£980

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📱 Phone Contract

• £40–£55 per month
• Over 24 months: £960–£1,320
• Phone included

Total cost: Often £300–£500 more than SIM-only

✅ For most users, SIM-only works out cheaper over time.

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✅ Pros of SIM-Only Deals

✔ Lower Monthly Costs

You’re not paying off a phone every month.

✔ More Flexibility

30-day plans let you:

• Switch providers
• Grab better deals
• Avoid long lock-ins

✔ Better Value Long-Term

Ideal if you keep phones longer than 2 years.

✔ Easy to Switch Networks

Keeping your number is simple with a PAC code.

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❌ Cons of SIM-Only Deals

✖ You Need a Phone Upfront

You’ll need to:

• Already own a phone, or
• Buy one separately

✖ Less Appealing for Frequent Upgraders

If you want a new phone every year, contracts may feel easier.

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✅ When a Phone Contract Still Makes Sense

A traditional contract may be better if:

• You can’t afford a phone upfront
• You want everything in one monthly payment
• You upgrade phones every 2 years
• You find a genuinely good handset + plan bundle

For some people, convenience outweighs cost savings.

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✅ Who SIM-Only Is Best For

SIM-only is usually the better option if you:

• Already own a decent phone
• Want the cheapest long-term option
• Like switching for better deals
• Want shorter contracts
• Don’t need flagship phones on day one

This includes:

• Students
• Families
• Anyone who doesn’t replace phones often

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✅ Frequently Asked Questions

Is SIM-only cheaper than a contract in the UK?

Yes, for most people. You avoid paying interest and handset markups.

Can I keep my old number?

Yes. Request a PAC code and switch easily.

Does SIM-only include 5G?

Most modern SIM-only plans do, if your phone supports it.

Is coverage the same?

Yes. SIM-only uses the same networks as contracts.

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✅ Final Verdict: Is SIM-Only Better?

For most UK users, SIM-only is better than a contract.

It’s:

• Cheaper
• More flexible
• Easier to switch
• Better value long-term

The only real downside is paying for a phone upfront — and even then, many people still save money overall.

✅ Find the Best SIM-Only Deals Right Now

If you’re ready to switch, see our full comparison of the best SIM-only deals in the UK, including options from EE and other major networks.

👉 Best SIM-Only Deals in the UK (2025)