Broadband bills could be cut for millions of low-income households under new UK Government plans to encourage ‘social tariffs’. A new service, which will go live next week and be run by the Department for Work and Pensions (DWP), will allow internet service providers to verify, with customers’ permission, whether they are in receipt of a relevant benefit which makes them eligible for a bill reduction.
The UK Government has called on all broadband providers to offer and promote social tariffs - discounted broadband and mobile deals for people on Universal Credit and other benefits - with statistics showing only 1.2% of those eligible have taken advantage of such a package.
The scheme is already supported by Virgin Media O2 who, following discussions with the UK Government, has announced that they will use the system to verify eligible customers signing up to their Essential Broadband tariff. The company will also waive early termination fees for those moving from existing tariffs.
Customers on social tariffs could in some cases save over £100 each year.
The new system will also simplify the process by removing the need for customers to prove their entitlement to broadband providers as regularly as every month.
Social tariffs are available to eligible customers in 99% of the country following UK Government-led negotiations with broadband companies.
The UK Government’s Cost of Living Business Tsar, David Buttress, has welcomed the new scheme and committed to continue working with industry to scale up and promote existing social tariffs, as well as encourage all providers to offer a discounted tariff.
He 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.”
Secretary of State for Work and Pensions Thérèse Coffey, said: “It’s more important than ever that people get the financial support available to them, including cheaper broadband for benefit claimants, and this change makes these social tariffs even easier to access.
“I’d like to thank those providers leading the way in moving customers over to discount rates, and I encourage others to follow suit to help millions of households to cut bills.”
How will the new system work?
Internet service providers will be required to gain customers’ consent before speaking to DWP about their eligibility.
DWP will minimise the information provided, sharing nothing other than confirmation that the person is entitled to a qualifying benefit at the time of contact - this ensures that claimants’ data remains as safe as possible.
Lutz Schüler, Chief Executive Officer of Virgin Media O2, said: “Connectivity is a lifeline people can’t go without, and as one of the first providers to have introduced a social broadband tariff in 2020, we are committed to making it as easy as possible for customers to get support with the cost-of-living crisis.
“We’re working to implement the API as soon as possible making it faster and easier to sign up for our social tariff as part of a comprehensive plan to boost the awareness, availability and attractiveness of Essential Broadband.”
New cost of living deals with retail partners
Alongside the launch of the new broadband scheme, the UK Government has also announced a further series of cost of living deals and discounts as part of its Help for Households campaign.
The deals have been negotiated with some of the UK’s largest businesses and follow those already announced last month to access the full range of deals.
The new deals include:
- A bespoke new deal with the publishing firm Scholastic, who are offering 20% off children’s books. Scholastic will also donate an additional 20% of all order values over £10 in Rewards to local schools for them to spend on books and resources to help stock libraries and classrooms.
- A curated set of Back to School deals from Amazon, with discounts ranging from backpacks and school uniforms, including up to 30% off Clarks School Shoes, to deals on stationary essentials from BIC, Staedtler and Papermate. Amazon Fresh is also offering savings, from lunchbox essentials to laundry detergent.
A number of other Help for Households partners, including Marks & Spencer, Primark and Shoezone have also agreed to promote their existing support schemes under the Help for Households campaign to raise awareness.
To keep up to date with the cost of living crisis, join in the conversation on our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out three times each week - sign up here.
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