Ofcom has called on the UK's internet providers to do more to help low-income households save on their broadband bills as it was revealed only one per cent have taken advantage of discounted deals.
As the cost of living crisis intensifies and the nation braces for the full impact of all the changes now in place this month, Ofcom has called on broadband providers to introduce - and more widely promote - specially discounted packages.
The regulator said it has found that the packages - sometimes known as ‘social tariffs’ - are currently available to around 4.2 million households in receipt of Universal Credit, but only 55,000 homes - 1.2 per cent of those eligible - have taken advantage of the deals so far this year.
Ofcom said as a result millions of lower-income households were missing out on an average annual broadband saving of £144 each.
It has called on the providers with social tariffs in place to promote them more widely and other firms to introduce them, with swift and simple sign-up options so more people can take advantage of the savings.
Lindsey Fussell, networks and communications group director at Ofcom, recently 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."
According to its latest research, around 1.1 million households are struggling to afford their home broadband service, with Ofcom predicting affordability problems are likely to worsen in 2022 as the cost of living continues to rise.
It said six providers - BT, Community Fibre, G.Network, Hyperoptic, Kcom and Virgin Media O2 - offer at least one specially discounted deal priced between £10 and £20 a month for broadband speeds ranging from 10Mbit/s to 67Mbit/s.
As well as urging others to introduce their own social tariff, Ofcom has called on these firms to ensure deals are properly promoted and easy to sign up for, saying customers must not be put off applying because it appears difficult to prove they are eligible.
Citizens Advice Scotland’s Strong Communities spokesperson Gillian Fyfe, said: “These take-up figures are shocking. Low income families across the country are really struggling because of the rise in energy bills, the end of furlough and the reduction in Universal Credit. Saving £144 could be a lifeline for them, and yet it seems very few of them know about it or feel able to choose that option."
Gillian continued: “The responsibility here lies with the broadband providers. It’s not enough for them simply to offer social tariffs. They need to make people aware that these options exist, and exactly how they should go about selecting these tariffs. CAS would also want to see eligibility for social tariffs extended so more people can take advantage of them and for social tariffs to also be offered in the mobile market.
“The Citizens Advice network will do our bit to make people aware of social tariffs, but the providers themselves must also take responsibility to increase take up.”
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