Broadband bills could be cut for millions of low-income households under 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, will allow internet service providers to verify – with customers’ permission – whether they are in receipt of a relevant benefit and therefore eligible for extra financial support. Currently 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 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 save over a hundred pounds a 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 Government-led negotiations with broadband companies.
Welcoming the new scheme, Central Devon MP Mel Stride said:
“The Government is already providing a £37 billion package of support to help families with the cost of living and around 75% of this support has been targeted at low-income households such as those on Universal Credit and pensioners. But we need action from the private sector too. This new scheme will make it easier for broadband suppliers to put customers on cheaper tariffs – which is good for struggling households and good for suppliers too if fewer people end up cancelling their broadband subscription altogether. Internet access is vital for many day-to-day tasks and I urge more suppliers to follow the example set by Virgin Media O2 and do the right thing for struggling customers.”
Advice on social tariffs from Ofcom can be found here.