Millions of benefits claimants are thought to be missing out on huge discounts off their broadband bills even though they are eligible for reductions.
With rising costs of living including increased fuel costs, National Insurance rises, and more expensive groceries affecting households across the UK, Ofcom has warned that millions on universal credit are missing out on discounts off their broadband bills, the Mirror reports.
Here are the discounts available and whether you are eligible for the lower tariffs.
What broadband discounts are available?
Special discounted broadband packages – sometimes known as ‘social tariffs’ – are available to an estimated 4.2m households in receipt of universal credit.
But only 55,000 homes have taken advantage of these discounted rates so far – just 1.2% of those eligible.
That means more than 4.1m benefit 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 and £20 a month for broadband speeds ranging from 10Mbit/s to 67Mbit/s.
Ofcom is urging EE, Plusnet, Shell, Sky, TalkTalk and Vodafone to support struggling households by also introducing social tariffs.
It also warned that many of these deals don’t feature on broadband advertising or price comparison website searches and many firms don't actively promote them to people who may be eligible.
Switching onto a benefits-linked tariff could provide huge 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.
Ofcom said broadband companies should also review their application processes to make sure they are easy to follow.
Lindsey Fussell 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.”
What social tariffs are available?
Here is a full breakdown of all the social tariffs currently available and who is eligible.
- BT Home Essentials: £15 a month, 36Mbit/s, 700 minutes included.
Available to people on: Universal credit, income-based jobseeker’s allowance, income-based employment support allowance (ESA), pension credit.
- BT Home Essentials 2: £20 a month, 67Mbit/s, unlimited minutes included.
Available to people on: Universal credit, income-based jobseeker’s allowance, income-based employment support allowance (ESA), pension credit.
- Community Fibre: £10 a month, 10Mbit/s, no minutes included.
Available to people on: Universal credit, housing benefit, and PIP recipients.
- G.Network Essential Fibre Broadband: £15 a month, 50Mbit/s, no minutes included.
Available to people on: Universal credit, income support, pension credits, ESA and income-based jobseeker’s allowance.
- Hyperoptic Fair Fibre 50: £15 a month, 50Mbit/s, no minutes included.
Available to people on: Universal credit, housing benefit, PIP, income support, pension credits, ESA and income-based jobseeker’s allowance.
- Hyperoptic Fair Fibre 150, £25 a month, 150Mbit/s, no minutes included.
Available to people on: Universal credit, housing benefit, PIP, income support, pension credits, ESA and income-based jobseeker’s allowance.
- KCOM Full Fibre Flex: £19.99 a month, 30Mbit/s, includes 20 local calls and 60 mins to 0845/ 0870, with £10 cap each month.
Available to people on: Universal credit zero earnings, housing benefit, PIP, income support, pension credits, ESA and income-based jobseeker’s allowance.
- Virgin Media Essential broadband: £15 a month, 15Mbit/s speeds, no minutes included.
Available to people on: Universal credit only.
How do I check if I can switch to a benefits-linked tariff?
Anyone who feels they should be on a benefits-linked tariffs as outlined above should double check their eligibility (ie. check which benefits they currently receive and if their provider offers a social tariff for those on that benefit) and contact their provider.
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