Mobile phone users whose handsets are stolen will no longer be hit with "shock bills" when a new cap on the maximum value of calls they will be expected to pay for comes into force next spring.
The Government has struck the deal with four major mobile companies - EE, Three, Virgin Media and Vodafone, as well as communications providers BT, Sky and TalkTalk.
It marks the latest move by ministers to help households struggling to pay their bills, following accusations by Labour leader Ed Miliband that the UK is suffering a "cost of living crisis".
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