95% of low-income households yet to sign up to broadband social tariffs

Some 95% of low-income households are yet to take up discounted broadband deals that could save them £200 annually, according to new research from the telecoms regulator, Ofcom.

There are 4.3 million UK households that are eligible for broadband social tariffs, but less than half are aware of the deals that can halve the amount they pay for their broadband connection. The regulator has called for broadband providers to be more upfront with their customers about how to find and sign-up to social tariffs.

The discounted deals are available to customers in receipt of benefits like Universal Credit. They start at just £12 per month and can halve the cost of broadband for eligible customers - they also aren’t subject to annual price rises, unlike many other broadband tariffs.

Find out more about the social tariffs available, and who qualifies for discounted rates in our guide to broadband social tariffs.

Social tariff take-up is still too low

While the number of households taking up a social tariff has quadrupled in the past year, it still remains disappointingly low with just 220,000 of 4.3 million eligible households signed up.

As of January, three in ten UK households reported an affordability issue when paying for their phone, broadband, pay TV or streaming services. Some 11% of households receiving government benefits struggled to afford their broadband services.

That makes the low take-up of social tariffs even more concerning - Ofcom estimates that the equivalent commercial tariff is nearly double the cost annually of a social tariff, meaning customers who don’t take up a social tariff are missing out on £202 savings per year.

Moving onto a social tariff is usually straightforward – we’ve broken down the process to help get you started in our guide on how to switch to a broadband social tariff.

Potential social tariff customers left ‘in the dark’

Despite an array of social tariffs now being offered, Ofcom’s research found that some 53% of benefits claimants were still unaware of social tariffs as of February 2023.

Three of the four major providers - BT, Sky and Virgin Media - offer social tariffs, as do other popular providers such as Hyperoptic and Vodafone, plus many smaller, localised providers.

The number of social tariffs available mean that some 85% of eligible customers are able to move onto a social tariff with their current provider – and therefore wouldn’t face any exit fee or disruption in service.

Broadband providers must do more

Given the ongoing cost of living crisis, it is essential providers step up and do more to ensure that those who are eligible for social tariffs are aware of them and know how to sign up.

Ofcom’s research found that just 9% of customers who were aware about social tariffs said they’d heard about them via their provider.

Its review of provider websites also found that information about social tariffs can be challenging to locate and can contain incorrect information.

Ofcom is calling for providers that offer social tariffs to be more upfront with customers about how to find and sign up to social tariffs. It says providers must review their webpages as a matter of urgency, ensuring that the information is accurate, clear and easy to understand.

It has also urged the only major provider that doesn’t already offer a social tariff – TalkTalk – to introduce one.

To help you find out more about what is available – from providers big and small – we’ve pulled together the full list of social tariffs available, including a link to the relevant page on each provider’s website.

Which? calls for action from telecoms providers

A Which? campaign is calling on essential businesses, including telecoms providers, to help consumers grappling with the impact of the cost of living crisis.

We want to see more done by telecoms providers to help their customers and support those who may be struggling to afford their bills. We're calling on them to:

• Increase awareness of social tariffs, including clarifying how these differ from commercial tariffs.
• Ensure that customers moving to these social tariffs don't incur additional charges when they are signing up, such as exit fees if they're currently in contract.
• Provide a range of social tariff options to ensure eligible consumers can choose the right connection for their household's needs.
• Enable consumers to leave their contract without penalty when prices are increased mid-contract.

Like supermarkets and energy companies, telecoms providers must pull together to create a fairer market, and help those struggling with the financial and emotional impact of rising prices.

Rocio Concha, Which? Director of Policy and Advocacy, 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.

'Broadband providers need to step up their efforts to promote their social tariffs to low-income consumers and ensure people aren't missing out unnecessarily. They must also make sure customers do not have to pay any early termination charges to move to another firm’s social tariff.

'We'd strongly encourage anyone who thinks they could be eligible for a social tariff to get in touch with their provider as soon as possible - as switching to these discounted rates could halve their bills overnight.'

Not eligible for a social tariff? You could still save money on your broadband bills using our top 10 tips.