How do pay as you go mobile tariffs work in 2021?

bigroundorange

Hi everyone, 

By way of background, last time I was on pay as you go (in around 2004/2005), they worked as the name suggests: i.e., you pay for what you use at the provider's set rate using credit you've topped up. When I last looked into these plans (in like 2012), pay as you go still broadly worked like this, but some plans let you have "free" perks such as inclusive minutes/texts if you topped up. The perks usually only lasted a month, after which your original top-up you used to receive the perk reverted to traditional pay as you go (unless you topped up again) - i.e., what you used came out of the top-up credit. 

I am now looking to get a pay as you go SIM card and cheap phone for a family member. However, the plans have come a long way and I am confused! Some providers appear not to offer traditional pay as you go anymore at all. What they call "pay as you go" is in fact a "bundle" you get each month after you top-up. Most of these bundles last one month before expiring. 

My question is: say I top-up £10 and automatically receive one of those bundles. At the end of the month, the bundle runs out. Assuming I do NOT top-up again, what happens to my original £10? Does it: 

1. Continue to exist, but you just lose the bundle (so works in the same way as the pay as you go perks used to work). Calls or texts you use after the bundle expires come out of the £10 top-up credit at the provider's standard rates, but the £10 itself doesn't expire. 
2. Expire with the bundle, i.e., the bundle expires at the end of the month, but so does my £10 top-up credit, so at the end of the month your £10 top-up disappears and your balance reverts to zero unless you top-up again? 
3. Neither of the above. If so, then what would happen? 

I wouldn't expect option 2 above to be correct, because that to me is very similar to a rolling monthly SIM only contract, rather than pay as you go, but thought I should check. 

I have tried searching online and FAQs of the main providers, but with no success. I guess most assume that you will use the bundle or you'd search for a traditional pay as you go tariff. However, because it is anticipated that phone will have very light use (a text once every five months or so to stop being disconnected; the phone will mainly be used for receiving calls and unforeseen calls etc), the cost difference between a traditional pay as you go tariff and a bundle pay as you go tariff would be very minimal IF the bundle top-up does not expire. Given not all providers appear to offer traditional pay as you go anymore, this would mean other options could be considered such as which provider has the best signal in the area. 

Thank you everyone for reading this post and for any help that you may be able to provide! 

Alter_ego

My PAYG  Tesco/O2 works exactly as you original. They don't push the SIM you have to specifically ask for it. Paid top ups never expire provided you call or text every 6 months.

pbartlett

With ee it is option 2 - the 10 pounds buys you a bundle which expires at the end if the month and your £10 is gone.

However you can order a payg sim from ee online which includes (say) a £10 bundle but put it in your phone and text 'stop bundle' to 150 before topping up - this switches the sim to traditional payg ie never expires, 35p per min and 15p per text

eDicky

When you buy a bundle on PAYG which is good for a month, the whole thing expires at the end of the month, including what you paid for it, regardless of how much was used.

As you've noticed, most networks now push these monthly bundles and some give you no 'regular' PAYG option. Others do allow you a top-up that works in the original PAYG way, without expiry (unless you fail to make a chargeable action or top-up again within a certain period), but often this option is obscured in their push to sell bundles and you have to look for it.

armith

You might want to look at some of the "non big company" operators. My main phone is a contract (Vodafone) but I have a Lebara phone that I use(d) when abroad (ah, the days) that I put a few £s on a couple of times a year and it is PAYG. I also have a phone with an obscure company called "White Mobile" that offers pretty cheap rates (including data at 2.5p per mb) that all my family use - because we get free White to White calls - I top it up with £5 every couple of months and my relatives can call me for free. Make sure you use it every 90 days though.

couriervanman

Asda mobile 4p a min 4p text....as above great for putting in cheap phone for using on holiday/beach etc 

getmore4less

Three data reward sim is a OK PAYG unless they put up the rates as they have done with the regular PAYG.
works as a 3p(min),2p(text),1p(MB)  with 200MB a month free 

O2 classic anther 321 has proved quite popular for the low use case.but only available through ebay sim providers as it is legacy
(Only 20p so worth a go)


for a low data user there is this option on sky mobile that might work either contract or £42 up front for 3 years.
https://www.hotukdeals.com/deals/unlimited-minutes-texts-100mb-plus-free-phone-no-upfront-cost-3631013
there are a couple of other threads one from when it was £27
https://www.hotukdeals.com/deals/unlimited-minutes-3-yrs-and-nokia-105-for-ps2700-at-sky-3565573

JJ_Egan

PAYG works same in 2021 for me as it always has .Need text or call every few months .

tempus_fugit

With GiffGaff you have a “goodybag” that lasts for the month and you can set it to recur each month. You also have “credit”, which is treated separately and does not expire, and kicks in if your goodybag runs out without renewing or when you make calls that are not included in the goodybag.

bigroundorange

Thanks very much for the replies, everyone. 

The pay as you go SIM card won't be for me (I am on a pay monthly SIM-only tariff), I am looking at buying one for a family member, to pair with a cheap as chips phone. The phone itself will mainly receive calls from other family members, including me. It may be needed now and again for unforeseen calls or to send a rare text to stop the SIM card from being disconnected. 

The above responses are very helpful, as they clarify that those "pay as you go" bundles definitely would not suit this situation. I will look further into traditional "light use" pay as you go plans (including whether any are hidden away on provider websites) and use some of the useful tariff suggestions above as reference points too - likely even choosing one of them! 

Although not the best option for this situation, my original question clearly shows I am out of touch with how pay as you go tariffs have evolved, mainly because they got too expensive to be considered a viable option and then I stopped looking into them. I think it would be useful to try to understand them though, as I am still a bit confused! 

There are numerous non-contract rolling SIM only deals out there, offered by various providers at very competitive prices if you shop around. Why may these "pay as you go" bundles be attractive options over those SIM only deals? And what benefits (if any) are there in picking one of these "pay as you go" bundles over a non-contract rolling SIM only plan? 

Thank you again!  

flashg67

My experience is that once you have a smart phone and discover the benefits, PAYG often becomes uneconomical. My OH used to make £10 last for 12 months until she got a smart phone and started using it for everything - a cheap monthly bundle now works out better value with no faffing about topping up/running out of credit etc
In your case. you already know the use will be low, so a standard PAYG would work for you