People who receive Universal Credit could save money on their internet bills - but many claimants do not know this.
A number of internet suppliers provide customers with discounted broadband contracts if you claim certain benefits like Universal Credit. The discounted deals range from between £10 to £20 a month for broadband speeds ranging from 10Mbit/s to 67Mbit/s, and are being offered by firms including BT, Virgin Media and Sky.
Social tariffs can provide a safety net for customers who might be struggling to afford their broadband or phone services. Industry regulator Ofcom is calling on broadband firms to arrange their own social tariffs to support householders on low incomes.
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The group said on its website: “We also want to see all companies promote these deals more widely, and make sure it’s swift and simple for customers to sign up.” An Ofcom report found 1.1 million households are struggling to afford their home broadband, which rises to one in 10 among those on the lowest incomes.
The group added: “Affordability problems are likely to worsen in 2022 due to retail price increases and the wider squeeze on household finances, putting further pressure on those who can least afford it. But switching onto a social tariff could provide some financial relief for eligible households.”
A standard commercial package costs an unemployed person on Universal Credit around £27 a month, taking up 8.3% of their disposable income, reports Birmingham Live. If they had a £15 social tariff, this would almost halve their broadband costs, using up 4.6% of their income.
Yet take-up of the special deals is extremely low, with 84% of those surveyed by Ofcom unaware of the social tariffs. People can ring up their internet providers to ask about cheaper broadband and phone packages for those on benefits.
In August, the Government's cost of living business tsar said: "Times are tough and families across the country are feeling the pinch, so we’re making it easier for companies to reduce phone and broadband bills for struggling families. Some of the biggest network operators have already committed to take advantage of this new scheme and we want to see other providers follow their lead so that everyone eligible for a social tariff can access one."
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