Site navigation

Millions of UK Households Missing Out on Cheap Broadband

Thom Carter

,

Millions of UK Households Missing Out on Cheap Broadband
The majority of low-income UK households are in the dark regarding cheaper broadband deals, with just 5.1% of qualifying households signing up to available discounted packages, Ofcom has recently discovered.

Social tariffs — low-cost broadband packages costing between £10 to £20 per month — are accessible to the over 4 million households across the UK receiving Universal Credit, Pension Credit, Jobseeker’s Allowance, or Income Support.

Ofcom’s research uncovered that while the take-up of social tariffs have quadrupled since January 2022, only 5.1% (220,000) households are utilising broadband deals which could help them to penny-pinch during the UK’s ongoing cost-of-living crisis. Ofcom suggests that such deals could save these households somewhere around £200 a year.

Additionally, Ofcom found that more providers are offering broadband social tariffs since the beginning of last year, and that 85% of people are now able to switch providers without incurring a fee. Current providers include BT, EE, NOW, Sky, and Virgin Media, among others. Further, social tariffs for mobile phones are now provided by three mobile providers.

However, despite the take-up of social tariffs quadrupling as well as more options to choose from, the majority (53%) of benefits claimants remain unaware of social tariffs, with Ofcom suggesting that broadband providers need to be more proactive in effectively communicating the availability of such packages to eligible customers.

Out of the 47% of benefits claimants who are aware of social tariffs, most had learned about the discounted packages through social media (26%) and television (21%). Only 9% found out they were eligible for social tariff broadband packages through their provider.

Further, Ofcom’s research highlighted that navigating provider websites and locating specific information regarding social tariffs can be challenging — Ofcom says incorrect information about broadband deals on some webpages was even discovered.

To help drive more awareness, Ofcom says that it’s raised its concerns with broadband providers, and has asked them to review their social tariff webpages to ensure clarity, accuracy, and accessibility.

Ofcom also says it’s urging TalkTalk and O2 to introduce social tariffs to the broadband and mobile markets respectively, with the expectation that switch over fees will also be waived.


Recommended


“Hundreds of thousands of customers are now benefitting from the huge savings that can be made from securing a social tariff. But millions are still missing out on superfast speeds for super low prices – with many not aware they even exist,” said Lindsey Fussell, Ofcom’s Group Director, Network and Communications.

“We’re urging anyone who thinks they could be eligible for a discount deal to contact their provider today and potentially save hundreds of pounds. Providers should also do much more to help these customers find and access these deals, at a time when these savings could make a massive difference.”

Rocio Concha, the Director of Policy and Advocacy at Which?, also commented, saying: “With millions of households across the country struggling to make ends meet, it’s outrageous that some providers continue to conceal their social tariffs from customers.

“Broadband providers need to step up their efforts to promote their social tariffs to low-income consumers and ensure people aren’t missing out unnecessarily. They must also make sure customers do not have to pay any Early Termination Charges to move to another firm’s social tariff.

“We’d strongly encourage anyone who thinks they could be eligible for a social tariff to get in touch with their provider as soon as possible — as switching to these discounted rates could halve their bills overnight.”

Thom Carter

Staff Writer, DIGIT

Latest News

AI

Nvidia Launches Open Secure AI Alliance for AI Safety and Security

AI Business Recruitment

Nearly a Quarter of Orgs Reducing Entry-level Hiring Due to AI Automation

Business

Scottish Businesses Turn to Self-funding as Growth Confidence Dips in H2

Data Finance

Payment Leaders are Struggling to Get Real-time Data