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 might be over 4 million households in the country not taking advantage of significantly discounted savings on their broadband bills. Ofcom is emphasizing the need for better promotion of these offers, especially targeting those who receive benefits. Data released by Ofcom on Monday shows that only 220,000 households have availed themselves of the cheaper social tariffs provided by nearly all major broadband providers.
The regulator mentioned that households receiving benefits could be eligible for discounts averaging around £200 per year, which is half the typical annual cost of £411 on the cheapest standard broadband tariff. This could serve as valuable assistance for financially disadvantaged households, especially during times of heightened concerns about the cost of living. Affording broadband or energy has become increasingly challenging for many individuals and families.
While eligibility criteria may vary among providers, individuals receiving universal credit or other benefits like personal independence payments are typically deemed eligible. Ofcom reports that only 5.1% of the 4.3 million households receiving universal credit payments have opted for broadband social tariffs.
While accessing social tariffs should be straightforward, the regulator is advocating for providers to streamline the process for customers to discover them. This might involve prominently showcasing them on websites or actively promoting them to customers. Ofcom’s data reveals that half of eligible households are unaware of social tariffs.
Despite being voluntarily provided by broadband companies, social tariffs do not receive government funding, and providers bear the cost of the discounts. This means providers have less incentive to promote more affordable deals to their existing customers.
Rocio Concha, the director of policy and advocacy for the consumer group Which?, deems this situation unacceptable. With millions of households facing financial challenges nationwide, it is outrageous that some providers are concealing their social tariffs from customers.
As per an Ofcom compilation, social tariff rates range from £10 per month for 5G wireless broadband from mobile network operator Voxi to £20 per month from companies like Sky and Virgin Media.
Lindsey Fussell, the regulator’s group director for network and communications, urges anyone who thinks they might qualify for a discounted plan to reach out to their provider promptly and potentially save hundreds of pounds. Providers should also make greater efforts to help these customers find and utilize these deals, especially considering the significant benefits these savings could offer at this time.