Mobile phone users are being routinely overcharged by the UK's biggest providers, telecoms watchdogs and consumer bodies have warned. At least six million loyal mobile phone contract holders are being charged for mobile phones they have already paid for.

Customers are unaware they are being charged for handsets after their contracts have ended, as providers do not tell them they have finished paying off the cost of the phone and only need to continue paying for calls, texts and data.

Citizens Advice has called on three of the four largest mobile phone providers, Vodafone, EE and Three, to stop the practice. The regulator Ofcom backed Citizen's Advice's concerns and hinted it could take action next year.

The Government also called for changes by mobile phone providers.

Minister for Digital, Matt Hancock said: "It's only right that mobile customers should be notified when they have paid off the price of their handset, and that their future bills should reflect this.

"I welcome Citizens Advice's call for better billing information for consumers, and hope that providers will now take the initiative by clearly separating the cost of handsets and tariffs in mobile contracts."