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Business
Catherine Furze

New rules mean cheaper broadband for more low-income families

Millions more families will be able to tap into cheaper broadband as a major provider has widened the list of benefits which qualify for the deal.

Virgin Media has expanded who can sign up for a its social tariffs to those receiving some legacy benefits or Pension Credit, as well as Universal Credit from the beginning of this month. Social tariffs are cheaper broadband and phone packages for people claiming certain benefits. Some providers call them ‘essential’ or ‘basic’ broadband, and they are delivered in the same way as normal packages, just at a lower price.

Amid rising living costs, telecoms watchdog Ofcom is encouraging companies to offer social tariffs to help customers on low incomes, and Virgin currently offers two broadband social tariffs – Essential Broadband, with speeds of 15Mb for £12.50 a month and Essential Broadband Plus, with speeds of 54Mb for £20 a month.

Read more: 5 ways you may be able to cut your broadband bill ahead of spring price hikes

Virgin can now also automatically check your eligibility with the Department for Work and Pensions (DWP), so you shouldn't have to provide any extra evidence of your benefits.

Social tariffs have existed since 2020, when Ofcom told providers to give low-cost options to the most hard-up customers, and this year most providers have excluded social tariffs in their price hikes.

Previously, only those getting Universal Credit could take out Virgin's Essential broadband plans, but the list has now been widened to include the following benefits and both new and existing customers are eligible to sign up if they qualify:

  • Income-based employment support allowance (ESA)
  • Income-based jobseeker's allowance (JSA)
  • Income support
  • Pension credit
  • Universal credit

Suppliers such as EE and Vodafone also offer social tariffs, and while Virgin's is among the cheapest on the market, it's also one of the slowest. Best value is Vodafone Essentials Broadband, which offers 38MB/S for £12 a month, so more than double the speed for 50p a month less.

Virgin's 15Mb is perfectly fine for most online tasks, but might not be enough if multiple people in your home will be using the internet at the same time (for example, if one person is streaming TV and another is making a video call or gaming online).

If you need more speed, other options include:

  • Vodafone: 38Mb for £12 a month, although this price is only guaranteed for the first 12 months of your contract;
  • BT: 36Mb for £15 a month (+ a one-off £9.99 connection fee);
  • Virgin: You can upgrade to the 54Mb social tariff, but the cost shoots up to £20/month

Ofcom has a complete list of all the providers that offer social tariffs here.

If you've already got Virgin broadband, Virgin says you won't have to pay any early exit fees or extra charges if you want to switch to the social tariff and you're still in contract. .

To sign up, start online live chat with Virgin to be talked through the process.

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