Millions of people on benefits are eligible for cheaper broadband deals, but aren’t signing up for them because firms are not doing enough to promote them, according to Ofcom.
Of the four million UK households that could be entitled to these deals – known as social tariffs – only 150,000 have taken them up, despite Ofcom and the government encouraging broadband providers to do more to promote them.
Many people on Universal Credit and other forms of benefits are eligible for these tariffs, which include both considerably discounted broadband and mobile deals that can result in savings of £140 a year on average. However, only a small proportion have made the switch so far, with an estimated 3.5% uptake rate among those eligible.
Earlier this year, the DWP introduced a new service to allow providers – with permission from their customers – to check whether their customers are in receipt of the relevant benefits and offer them the deal if they are. But even though several providers offer these tariffs, the slow uptake on these deals suggest that providers are not being particularly proactive about advertising them, or letting customers know if they’re eligible.
Which providers offer social tariffs?
Sky recently became the first major provider to make use of the service. Automatic verification from the DWP means that claimants don’t need to repeatedly prove that they are in receipt of benefits to access the provider’s Broadband Basics offer, which costs £20 a month for 18 months. The Minister for Social Mobility, Youth and Progression has called on other providers to follow suit by making use of the service.
Virgin Media O2 offers multiple ‘Essential broadband’ tariffs, the most basic version of which costs just £12.50 a month. Upgraded options are also available for £20 a month.
Vodafone offers an ‘Essentials Broadband’ tariff for those receiving benefits, currently the one of the cheapest on the market at just £12 a month for 12 months, then £22 per month after that. This comes with no set-up cost and no early termination fees.
Other internet service providers that already offer social tariffs for £15 a month include BT, Country Connect and Hyperoptic. BT’s ‘Home essentials’ package, for example, includes fibre broadband and also offers a refund if it does not meet the guaranteed speed. Country Connect’s social tariff comes with unlimited data usage and the router itself is free (most providers charge a one-time cost for delivery of the router itself). All three plans can be cancelled at any time with no exit fees.
Now offers a social tariff costing £20 a month, and does not charge for early cancellation either. Voxi’s ‘For Now’ mobile plan comes with unlimited 5G data, calls and texts for just £10 a month.
Most of these providers promise different internet speeds, so compare their offers to see which one suits your broadband needs. These tariffs are available to those on most forms of benefits, but be sure to check the specific criteria listed by your chosen provider to make sure that you’re eligible – for example, the Sky Broadband Social Tariff is only available to existing Sky Broadband customers.
Whether you’re eligible for a social tariff or not, you might be surprised at how much you could save on broadband by looking around and comparing other deals.
If you’re interested in moving providers, or want to check how your current deal stacks up against the competition, our articles How to switch broadband providers: a simple guide and How to find the best broadband deal might be useful. Or, check out our article Seven ways to save on your household bills for more tips on saving money around the house.
If you’re considering switching your broadband provider, it’s worth doing plenty of research so you can be certain you’ve found the best possible deal to suit your needs. Comparison sites such as MoneySuperMarket, Uswitch and Compare the Market all enable you to compare the latest broadband deals, whether you’re looking to switch just your broadband, or if you want a broadband, phone and TV package.
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