Thousands of Vodafone customers could slash their broadband bills by £120 a year as the company unveils a new social tariff.
Broadband firms have extended support to struggling households by introducing the so-called social tariffs, which are available to those receiving certain benefits, as the cost of living continues to rise.
Vodafone’s Essentials Broadband will cost £12 a month. Customers can join without a set-up or exit fee and there won’t be any surprise in-contract price changes.
Vodafone is launching its own social tariff to help those on low income households
Customers can access Vodafone’s Fibre 1 or Full Fibre 1 deal, with an average download speed of 38 Mbps, for 12 months. Customers can save around £120 a year compared to Vodafone’s cheapest broadband deal.
The deal will be available to those on Job Seekers Allowance and Universal Credit, as well as those on Employment and Support Allowance, Disability Allowance and Personal Independence Payment.
Even if you are already on a social tariff, it is worth shopping around if you are out of contract because all providers price them differently. For example, the Vodafone deal is £3 a month cheaper than BT’s Home Essential package.
Catherine Hiley, broadband expert at comparison site Uswitch.com, said: ‘Access to reliable broadband is a household necessity, and this new Vodafone social tariff is a welcome addition to the line-up of deals available to help those in need.
‘Financially vulnerable people now have several options when it comes to broadband social tariffs. And notably, this deal is £3 less per month than the BT Home Essential package.
‘Means-tested social tariffs are a lifeline for lower-income customers, but many still don’t know they are available. These tariffs are often difficult to find on the provider’s own website and more effort must be made to reach out to those that most need them.
‘If you’re not eligible for a social tariff but are still struggling to afford your broadband, shop around for the best deals available. There are some competitively priced deals out there, such as Hyperoptic’s 30 Mbps Fibre Broadband for £15 per month or Vodafone’s Superfast 1, offering 38 Mbps for £20 per month.’
Millions overpaying for broadband
Earlier this year Ofcom revealed just 1.2 per cent of the 4million households eligible for social tariffs have applied for the discounted broadband scheme, meaning they’re paying far more for their internet than they need to.
More than 1million households are reportedly struggling to afford their home broadband, according to the regulator.
‘The rising cost of living is putting a million families at risk of falling on the wrong side of the digital divide. We must not allow this to happen,’ said Ahmed Essam, CEO at Vodafone UK.
YouGov research commissioned by Vodafone shows families who are not connected to the internet stand to lose £286 per month – and £3,432 a year – because they are not able to access the best prices and deals when making purchases.
Vodafone will also offering small business owners free broadband for a year to help with rising costs as research shows more than a third of small businesses have either downgraded or cancelled their broadband in a bid to cut costs.
Find the fastest and cheapest broadband – and see if you can save
Broadband, TV and phone contracts are notoriously sticky, with customers often allowing deals to run on for many years while providers raise prices.
But it may be possible for you to get faster broadband, a better TV package and an improved phone deal, while saving money each month.
It is always worth comparing prices to see if you can save – particularly as the cost of living crisis bites.
This is Money has partnered with Broadband Choices to offer readers the chance to easily search for the best and cheapest deals for their broadband, mobile and TV.
