Millions of benefits claimants are being warned they could be missing out on massive savings on their broadband bills. People claiming certain benefits are able to avail of special rates, known as social tariffs, which give them discounts off their internet costs.
Earlier this year regulator Ofcom warned that although the rates are currently available to around 4.2 million households in receipt of universal credit, only 55,000 homes - 1.2 per cent of those who are eligible - have taken advantage of the deals so far this year. It means millions of lower-income households were missing out on an average annual broadband saving of £144 each, and has led to calls for companies who offer social tariffs to promote them more widely.
TV and broadband provider Sky has recently made an offer to anyone who claims universal credit or state pension to help the hardest hit by the cost of living crisis. The company has launched a new deal that will save people on benefits around £60 a year or £90 over the 18 months it is available, reports the Liverpool Echo.
Read more: The easy way you could save £144 a year on your broadband bill
Who is eligible for Sky and Now Broadband’s cheaper tariffs?
To be eligible you must be claiming certain benefits as listed above. Currently it’s only available to customers who already have Sky Broadband, and still requires these customers to contact Sky to enable the move. The same requirements apply to existing Now Broadband customers.
What do the cheaper packages from Sky and Now Broadband offer?
Sky Broadband Basics costs £20 a month for 18 months, and includes Sky Broadband Superfast 35, a fibre broadband package offering an average download speed of 36 Mbps. This usually costs £25 per month.
If fibre broadband isn’t available where you live, Sky Broadband’s Essential Plus plan, with average speeds of 11 Mbps, can be taken instead. Both packages include Sky Pay As You Talk – which means you’ll need to pay for any phone calls you make.
Now Broadband’s new cheaper packages are similar. You can benefit from Now Fan Fibre membership for £20 a month, with average speeds of 36 Mbps (usually £25). This doesn’t include a call plan either, so you’ll need to pay for any calls made from a home phone.
How do I apply for one of Sky or Now’s new tariffs?
In both cases you’ll need to contact your provider to explain your situation. They should outline next steps and key dates for when you can switch to the lower priced tariff, if you qualify.
What if my circumstances change and I’m no longer eligible?
This is where the two providers differ slightly. With Sky, you’re signing up to a new 18-month contract. However, there won’t be any early termination charges if you do need to leave before this period ends. Once the 18 month contract is up, the price will go back up to the standard rate. With Now Broadband, you’ll be entering an ongoing monthly contract, and will need to give it 31 days notice if you want to cancel, to avoid any early termination charges.
For all the latest news and tips on benefits, money-saving and finance straight to your inbox, sign up for our WalesOnline Money newsletter twice a week here.
