More than half of low income households in the UK are in the dark about bargain broadband deals, according to a new report by communications regulator Ofcom.
There are concerns that people are not receiving proper guidance when it comes to switching to a social tariff, which is a low-cost broadband deal offered to customers on benefits and typically cost between £10 and £20 a month. Ofcom, the UK’s communications regulator, estimates that millions of families could save up to £200 a year by switching, yet the majority of people are unaware of these deals. The regulator has identified lack of knowledge as one of the main reasons behind low uptake.
Social tariffs are available from various providers, including BT, EE, Sky, and Virgin Media, among others, and are designed to offer affordable internet and telecoms access to UK households receiving government benefits such as Universal Credit, Pension Credit, Jobseeker’s Allowance, and Income Support. Ofcom is encouraging TalkTalk and O2 to introduce social tariffs in the broadband and mobile markets, respectively. Despite the potential savings, only 220,000 people, or 5% of households, are currently signed up to social tariffs, whereas 4.3 million households could be eligible.
Consumer groups are urging customers to explore these packages, especially in light of the cost of living crisis. Social tariffs typically come with shorter-term contracts and no early exit fees, allowing customers to leave without penalty if their circumstances change. According to Ofcom’s affordability tracker, one in three UK households struggles to afford communication services, highlighting the ongoing financial pressures faced by many people.
Awareness drive
According to Ofcom, over half of eligible households are still unaware of social tariffs, and the watchdog believes that more needs to be done to raise awareness and encourage people to take advantage of these packages. Despite a similar call being made last year, broadband providers are still not doing enough to inform their customers about social tariffs and how to sign up for them.
While most eligible customers who know about these tariffs learned about them through social media or television, only 9% found out about them through their provider, indicating that the industry needs to do more to promote them effectively and make them easier to find. Lindsey Fussell, Ofcom’s director of network and communication, believes that broadband providers should do more, particularly at a time when these savings could make a significant difference, and is urging those who think they might qualify for a discount to contact their provider and potentially save hundreds of pounds.
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