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Broadband companies ‘must do more to promote social tariffs’

Kelly Choos April 5, 2022 4 min read

Image of sad woman with head in hands in front of laptop

As the cost of living rises, it is “vital” that broadband companies do more to promote discounted broadband for low-income households, the government says.

In a letter to broadband providers, Culture Secretary Nadine Dorries noted that only 1-2% of Universal Credit claimants accept social tariffs.

Ofcom has already said that 84% of recipients were unaware of the social packages.

He said he saw “limited evidence” of those fares being promoted.

The Good Things Foundation, which campaigns on behalf of the digitally excluded, described data poverty as an issue that “has increased dramatically over the past two years during the pandemic”.

He warned that the rising cost of living “will only put further pressure on those on the lowest incomes, who already have to make tough choices between having the internet connection they need and heating their homes. or feed their families.

In her letter to broadband companies, Nadine Dorries highlighted the growing prevalence of a “more digital society” and said it was “vital” to raise awareness of discounted broadband deals “for low-income households”. income”.

Of the 5,000,000 households eligible for cheaper broadband, only around 55,000 households are currently taking advantage of the available offers, the culture secretary noted in her letter.

Ms Dorries invited telecom companies to respond “on how we go further”.

“Getting Harder”

Mike – who has asked the BBC not to use his surname – has been off work due to medical issues and is claiming Universal Credit.

Speaking on the phone to the BBC, he says he’s on the couch wrapped in a duvet because he can’t afford to turn on the heating.

“It’s getting harder and harder. Obviously with the increase in electricity, food prices are going up – I’m starting to struggle.”

He has no TV and uses food banks; a local charity is providing food vouchers and a hot meal – and recently gave him a tablet so he could access the internet.

The internet is essential – Mike uses it to communicate with the job centre, among other things.

At present he uses the limited data that comes with his phone and tablet – paying for broadband is not an option: “Taking extra bills right now is not something I would want do,” he told the BBC. .

He says he has heard a little about social tariffs, but only “through the vine”: “It’s not really made for you to find this easily, you have to go and try to find this information”.

Many of those struggling to pay their bills turn to Citizen’s Advice for help.

Matthew Upton, the charity’s policy director, told the BBC: ‘We hear shocking stories of people on the lowest incomes struggling to get by and yet they miss out on affordable broadband offers .”

“It’s good to see the government putting more pressure on businesses to do more to help people switch to social tariffs, but if that’s still not working they need to look at other options.”

Other organizations welcome efforts to raise awareness of social tariffs, but say it will not solve the underlying problem of rising costs and insufficient revenue.

Previously, Ofcom had found that, even on a social tariff, broadband accounted for almost 5% of the disposable income of an unemployed person claiming universal credit.

Rebecca McDonald, senior economist at the Joseph Rowntree Foundation, told the BBC that promoting social tariffs “is no substitute for meaningful action to protect people’s incomes because we face the greatest pressure on living standards. for generations.”

“At the bare minimum, the government must increase benefits in line with inflation as soon as possible, to protect those most at risk of hardship.”

Businesses call for more support

Some of the biggest telecommunications companies have also called on the government to do more.

A spokesperson for Virgin Media O2 said it was talking to the government about ‘ways to make signing up easier and faster’.

The company said it hopes to move from a manual to an automated process to help identify individuals or families with Universal Credit.

BT told the BBC it offered social pricing “at cost” and, as the cost of living rose, it was “now urgent that the rest of the industry play their part in introducing this type of social tariff, and that the government consider what more they can do to offer additional support to those who continue to struggle”.

“If the industry is not playing its part, the government should allow Ofcom to demand it.”

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