0870 changes: what you need to know & tips to avoid charges

Ofcom is this week standardising and clarifying charges for so-called 'service numbers', such as those starting with 0870 and 118.

The changes come as research shows that customers avoid calling many service numbers because of a lack of information about the associated charges. Here's everything you need to know about what Ofcom is billing as "the biggest change to telephone calls in over a decade":

What's changing?

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From 1 July, charges for all service numbers – those phone numbers beginning with 084, 087, 09 and 118, which are often used to call banks, private companies, government departments and directories — will be divided into two parts: access charges and service charges.

The access charge is the fee your phone company charges you per minute. The service charge is then levied by the organisation you call. Both should make their charges clear to you, so you can calculate the full cost for your call by adding the two together.

From 1 July, the charge for so-called "premium rate" 09 numbers will also be capped at either £6 per call or £3.60 per minute, depending on how the call is charged. The service charge for 084 numbers will be capped at 7p per minute, and the service charge for 087 numbers will be capped at 13p per minute.

Freephone numbers (those beginning with 0800 or 0808), which are already free from most landlines, will become free from mobile devices as well.

Which numbers are affected?

These changes apply only to service numbers – those beginning with 08, 09 or 118. They do not affect calls made to landlines (01, 02 and 03 numbers), mobile (07) numbers, calls made from payphones, international calls or calls made to the UK from abroad. Text message rates are also unaffected.

Why are these changes happening?

Telephone users are sometimes left confused about the cost of calling service numbers and where their money goes, according to Ofcom, and the result is that some people avoid calling the numbers and the companies that use them. Ofcom's changes aim to clarify the charges.

How can I avoid being charged?

Money Saving Expert offers several ways to avoid charges:

Alternative departments:

Companies will often make you ring a service number to reach their customer service department, but most will have different departments with non-service phone numbers you can call. Some companies even have a freephone number to attract business calls to their sales departments. You can use this to your advantage by calling the sales line and asking to be transferred to the relevant department.

Overseas numbers:

Many companies list an alternate non-service number that can be reached from abroad. Try using this number, but replace the +44 prefix with a zero. Some companies will block landline calls attempting this route, so you could use your mobile phone, or dial 141 before the number to mask your caller ID and country of origin.

There's an app for that:

Apps such as 0870 for iPhone and WeQ4U for iPhone and Android will search a database to help you find the cheapest number available to reach your desired organisation. If you're placed on hold, WeQ4U also waits for you and calls you back when an agent is available. The Saynoto0870 website also offers alternatives to expensive numbers.