UK low-income households missing out on savings from social tariffs on broadband deals, says Ofcom report
A recent comprehensive report published by the United Kingdom’s communications regulator, Ofcom, has unveiled a startling fact: a significant proportion of low-income households in the UK, accounting for over 50%, are entirely unaware of the availability of affordable broadband deals that could potentially save them as much as £200 per year. These low-cost broadband offerings, known as social tariffs, are specially designed for customers receiving benefits and usually cost between £10 and £20 per month. They comprise reduced prices for internet and telecoms access, thus providing a more budget-friendly option for eligible individuals and families.
Ofcom’s findings indicate that millions of families across the UK could experience substantial savings by simply switching to social tariffs. The uptake of these deals has experienced a rapid four-fold increase since January of the previous year. However, despite this remarkable growth, the majority of eligible people still remain uninformed about the existence of these offers.
According to Ofcom, one of the primary factors contributing to this lack of awareness is the deficiency in appropriate advice or information regarding these deals being provided to households. Consequently, the regulator is now urging broadband service providers to take the initiative in promoting their social tariffs more effectively and making them more accessible and easily discoverable. Companies currently offering social tariffs include BT, EE, NOW, Sky, Virgin Media, Community Fibre, KCOM, G Network, Hyperoptic, and VOXI.
In an effort to further extend the reach of social tariffs, Ofcom is also calling on two prominent companies – TalkTalk and O2 – to introduce social tariffs in their respective broadband and mobile markets. At present, a mere 5% of eligible households, which translates to approximately 220,000 people, have capitalized on these offers. Social tariffs not only offer a more affordable alternative but also tend to come with shorter-term contracts devoid of early exit fees. This ensures that customers are not bound to a contract in case their financial circumstances change, offering them greater flexibility and peace of mind.
Ofcom’s affordability tracker paints a grim picture of the financial strain experienced by numerous households in the UK, with one in three reporting difficulties in affording their communication services. This statistic underscores the ongoing financial pressures faced by a considerable number of people in the country. Given that social tariffs represent a viable solution to alleviate some of this burden, Ofcom is actively encouraging anyone who believes they may be eligible for these discounted services to reach out to their respective providers and potentially save hundreds of pounds in the process.
Lindsey Fussell, Ofcom’s director of network and communication, has issued a call to action for broadband providers, urging them to ramp up their efforts in promoting social tariffs and making them more accessible. Fussell emphasizes that, in the current economic climate, savings derived from social tariffs could have a significant impact on the financial well-being of countless households. By actively promoting these tariffs and ensuring eligible customers are aware of their options, broadband providers can play a crucial role in improving the affordability of communication services for those who need it most.
In conclusion, Ofcom’s report highlights the pressing need for greater awareness and accessibility of social tariffs among low-income households in the UK. With millions of families standing to benefit from the savings these offers provide, it is incumbent upon broadband providers to make a concerted effort to promote and make these deals more accessible. Additionally, Ofcom’s call for companies like TalkTalk and O2 to introduce social tariffs in their markets can further expand the reach of these cost-saving options. By doing so, the industry can play a vital role in easing the financial burden on households and ensuring that communication services remain affordable for all.
