Money expert Martin Lewis is warning Sky customers to look out for a price rise on their contracts, because it gives you an instant legal way out. Returning on his latest podcast on BBC Sounds, Spotify and Apple Music, The Martin Lewis Podcast, Martin Lewis responded to a question from a listener who is currently locked into a mobile phone contract with Sky.

Martin was asked by a listener, Lee: “How can I switch my mobile contract without it costing the earth? Sky only gives pennies for a phone if I send it back and charge so much to end the contract.” Martin then set out the new rules which govern price rises as put in place by Ofcom this year, which state that mobile and broadband firms must tell you up front in pounds and pence about any price rises which will be put in place during your contract, up front when you sign up.

But there’s a loophole for firms, in that if they don’t do this, they automatically give the customer the right to leave within 30 days of a later price rise, which is what Sky has opted to do.

Martin replied: “The key bit of that question is the last bit. Look, let’s be blunt. You sign up for a contract, the contract is to provide you with a service for a set period of time, and you get a price that is marked to be over that set period of time and if you wanted to leave it early, unless they have put prices up… And a side note on Sky.

“I said earlier that when you sign up for a new contract, they must tell you what the price rises are going to be during the contract period in advance. They don’t always have to do that. The vast majority do, one of the firms that doesn’t do that is Sky.

“Sky doesn’t tell you in advance, but then if it does increase your price mid-contract, it has to allow you to leave within 30 days penalty-free.”

Martin then warned: “So always watch out for your price hike on Sky and decide if you still want to be with it at that point, mobile and broadband that applies to.”

Then Martin added to all customers: “But in the case of you’re still within a contract and you have early cancellation charges, unless you are no longer getting an adequate service – and even then it is quite difficult to do – then you still have to pay them the cancellation fee for leaving and getting out of your contract.

“And in most cases you may as well stay which is why my first step is to check if you’re out of contract”

The Martin Lewis Podcast from June 19 is still available on BBC Sounds, Spotify and Apple Music.