More than 4m UK households may be missing out on deeply discounted savings on their broadband bills, the telecoms regulator has said as it called for better promotion of the offers for those receiving benefits.
Only 220,000 households have signed up to cheaper social tariffs offered by almost all of the UK’s main broadband providers, according to data published on Monday by Ofcom.
Households receiving benefits could be eligible for discounts of about £200 a year on average, compared with the cheapest normal tariff, halving the typical annual bill of £411 for fixed broadband, the regulator said.
That would offer valuable support for the poorest households at a time when large numbers are struggling with the cost of living crisis, particularly when paying for broadband or energy.
While eligibility requirements vary between providers, as a general rule people who receive universal credit or other benefits such as personal independence payments are eligible.
Households who have signed up to broadband social tariffs represented only 5.1% of the 4.3m households receiving universal credit payments, Ofcom said.
While accessing social tariffs should be fairly straightforward, the regulator wants providers to make it easier for customers to find such as adversing them more prominently on websites or promoting them directly. Half of eligible households are unaware of social tariffs, according to Ofcom’s data.
However, social tariffs are voluntary offers with no government funding, and the costs of the discounts are absorbed by the broadband providers. That means providers have less incentive to advertise cheaper deals to existing customers.
Rocio Concha, the director of policy and advocacy for the consumer group Which?, said: “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.”
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Prices under social tariffs range from £10 a month for 5G wireless broadband from the mobile network operator Voxi, to £20 a month from providers including Sky and Virgin Media, according to an Ofcom list.
Lindsey Fussell, the regulator’s group director for network and communications, said: “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.”
