Four million households are missing out on £144 a year broadband bill cut – how to get it

MILLIONS of families under pressure from the rising cost of living could save £144 on their annual broadband bills by switching to a new tariff.

Special discounted broadband packages – sometimes known as “social tariffs” – are available to an estimated 4.2 million households in receipt of Universal Credit.

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But only 55,000 homes have taken advantage of these discounted rates so far – just 1.2% of those eligible, according to regulator Ofcom.

That means that millions of benefits recipients are missing out on an average annual broadband saving of £144 each.

Currently six broadband providers – BT, Community Fibre, G.Network, Hyperoptic, KCOM and Virgin Media O2 – offer at least one of these specially discounted deals.

These packages are priced at between £10-£20 a month for broadband speeds ranging from 10Mbit/s to 67Mbit/s.

Ofcom is today calling on all other broadband firms to support struggling households by introducing their own social tariffs.

It also wants all companies to promote these deals more widely, and make sure it’s quick and simple for customers to sign up.

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Lindsey Fussell, networks and communications group director at Ofcom, said: “People rely on their broadband for staying in touch, working and learning from home. But for those who are really struggling with rising bills, every penny counts.

“Special discounts can make all the difference, and too many broadband firms are failing either to promote their social tariff or to offer one at all.

“We expect companies to step up support for those on low incomes, and we’ll be watching their response.”

Ofcom’s research found that around 1.1 million households are struggling to afford their home broadband service.

That rises to around one in 10 among the lowest-income households.

Affordability problems are likely to worsen in 2022 due to retail price increases and the wider squeeze on household finances, including rising energy bills, putting further pressure on those who can least afford it.

But switching onto a social tariff could provide some financial relief for eligible households.

For example, a standard commercial broadband package costs an unemployed person claiming Universal Credit an average of £27 per month – or 8.3% of their monthly disposable income.

A £15 social tariff would almost halve their broadband costs and use up 4.6% of disposable income.

But despite this, Ofcom found that the vast majority of benefits recipients are unaware of social tariffs, and take-up is extremely low.  

“We have seen limited evidence of providers actively promoting their social tariffs to eligible customers. These deals don’t generally feature in broadband advertising or price comparison website searches,” it said.

Providers including EE, Plusnet, Shell, Sky, TalkTalk and Vodafone still do not offer a social tariff.

But Ofcom called on this to change, and said discounted deals must be promoted, with clear information about who is eligible.

It should also be easy to sign up so that people aren’t put off applying.

Matthew Upton, director of policy at Citizens Advice, said that its research had shown that one in 10 people aren’t confident they’ll be able to pay their broadband bill in the next three months because of the squeeze on their income.

He said: “It’s been more than six months since Ofcom and the government started pushing social tariffs as an answer, but the shameful 1% take-up says it all.

“It’s people on the lowest incomes who are missing out. 

“If firms aren’t able to show serious increases in the number of people they’re helping move to these tariffs in the next six months, the government and Ofcom must take action.”

Hollie Croft, broadband expert at Broadband Finder, said the findings showed just how much work needs to be done to inform vulnerable households of the support currently available.

“Broadband providers must do more to help any customers that are struggling to make ends meet and notify them about all the support available to reduce their monthly outgoings,” she said.

“This is even more important given the cost-of-living crisis many will be experiencing, and with a looming national household bills price hike likely to be well over a thousand pounds per family.”

This post first appeared on thesun.co.uk