The regulator is urging for improved promotion of offers that are accessible to households receiving benefits with low incomes
According to Ofcom, the UK’s telecoms regulator, there may be over 4 million households in the country who are not taking advantage of the heavily discounted savings available on their broadband bills. Ofcom is urging better promotion of these offers specifically for those who receive benefits. The data released by Ofcom on Monday reveals that only 220,000 households have enrolled in the cheaper social tariffs that are provided by almost all of the country’s major broadband providers.
The regulator stated that households that receive benefits could qualify for discounts averaging around £200 per year, which is half of the usual annual fixed broadband bill of £411 on the cheapest normal tariff. This could be a valuable form of assistance for the most financially disadvantaged households, particularly during times of heightened cost of living concerns. Paying for broadband or energy has become particularly challenging for many individuals and families.
Although eligibility criteria may differ among providers, those who receive universal credit or other benefits, such as personal independence payments, are generally considered eligible. According to Ofcom, only 5.1% of the 4.3 million households who receive universal credit payments have subscribed to broadband social tariffs.
Although accessing social tariffs should be a simple process, the regulator is calling for providers to make it easier for customers to locate them. This could include prominently featuring them on websites or actively promoting them to customers. Ofcom’s data indicates that half of eligible households are unaware of social tariffs.
Although social tariffs are offers that are made voluntarily by broadband providers, they do not receive any government funding, and the cost of the discounts is borne by the providers. This implies that providers have less motivation to publicize less expensive deals to their current customers.
According to Rocio Concha, the director of policy and advocacy for the consumer group Which?, this situation is unacceptable. Given that millions of households across the country are experiencing financial difficulties, it is outrageous that certain providers are hiding their social tariffs from their customers.
According to an Ofcom list, social tariff prices vary from £10 per month for 5G wireless broadband offered by the mobile network operator Voxi to £20 per month provided by companies such as Sky and Virgin Media.
Lindsey Fussell, the regulator’s group director for network and communications, encourages anyone who believes they may be eligible for a discounted deal to contact their provider right away and potentially save hundreds of pounds. Providers should also do more to assist these customers in locating and taking advantage of these deals, particularly given that these savings could be hugely beneficial at the moment.
