Four common misconceptions about broadband social tariffs

An increasing number of broadband providers have started offering social tariffs – special discounted deals available to certain low-income customers in receipt of benefits like Universal Credit. 

However only a tiny minority of people have signed up – less than 4% of the 4.2 million eligible households. So we surveyed more than 2,000 people eligible for fixed broadband social tariffs to uncover the barriers to signing up. 

Worryingly, six in 10 of those surveyed were not aware social tariffs exist, leaving them at risk of missing out on much-needed discounts. 

But even customers who were aware of social tariffs were confused about some of the advantages of taking one up – those misunderstandings could put people off opting for a deal that could help them make precious savings. 

Research we conducted earlier this year showed that customers who are eligible for a social tariff could save an average of £250 per year by switching from their current broadband deal to the cheapest social tariff. 

We’ve taken a look at some of the top reasons people aren’t choosing social tariffs and explain why we think those who are eligible should still consider them. 

Find out the social tariffs are available from providers, and who qualifies for discounted rates in our guide to broadband social tariffs. 

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‘I don’t want a slower broadband speed’

When we asked customers who are both eligible for social tariffs and aware of them why they hadn't taken one up, the main concern centred around broadband speeds. Some 44% of those who had chosen not to take up a social tariff told us this was because they thought speeds offered were too low. 

While a handful do offer slower speeds, most widely-available social tariffs run at superfast speeds (between 30Mbps and 100Mbps). In many cases, superfast speeds will be adequate for browsing, streaming and using video-calling services. BT and Virgin Media offer social tariffs that are at the same speed as their widely-available superfast commercial tariffs (67Mbps and 50Mbps, respectively). 

And, while they’re generally from smaller, localised providers, social tariffs with ultrafast speeds are also available in parts of the country. At least five providers offer social tariffs with speeds ranging from 100Mbps to 1,000Mbps (1Gbps). 

So it’s certainly worth weighing up what speed you need before writing off social tariffs completely. 

However, there’s also more providers can do here. We’ve asked the companies that offer social tariffs to consider providing a range of options to ensure eligible consumers can choose the right connection for their household. 

Providers like BT, Hyperoptic and Virgin Media all already offer two tariffs at different speeds and different price points. 

‘I’m stuck in a fixed term contract’ 

If you’ve still got many months on a fixed-term contract you may be wary of changing deals, courtesy of the risk of pricey early cancellation fees. Broadband contacts are usually offered with a fixed term lasting from 12 to 24 months. If you wish to exit your contract before its end date, your provider will usually charge a fee for each month remaining – and it can add up to hundreds of pounds. 

Around a third of those who were aware of social tariffs but hadn’t taken one up said it was because thought they they couldn’t leave their contract. But providers that offer social tariffs treat these differently. Most will waive their early termination fees if you move from an existing contract to their social tariff. 

It’s less straightforward if you’re with a provider that doesn’t offer a social tariff. Customers may face early termination fees if they want to switch to a social tariff elsewhere.

BT, which owns EE and Plusnet, tells us it will allow customers with those providers to move to BT’s social tariffs penalty-free because EE and Plusnet do not offer their own social tariffs. (It's unclear whether they'll let those customers move to a social tariff offered by another provider, however.)

Meanwhile, Shell Energy Broadband has told us it will waive early termination charges for customers switching to any other provider’s social tariff.

We don’t think any provider should penalise customers for trying to move to a social tariff that better meets their needs. It’s essential that all providers support customers through the cost of living crisis, and removing exit fees for those moving to a social tariff – even if it’s with another provider – is a good start.

However, if you’re eligible for a social tariff but are with a provider that doesn’t offer one, it’s still worth speaking to them. Some providers have told us they will consider waiving exit fees for those switching away to a social tariff on a case-by-case basis. 

Read 10 ways to save money on broadband and TV bills for more advice on reducing the cost of your service, and check our latest cost of living news to help ease the squeeze.

‘There’s not enough information about social tariffs’ 

It’s fair to say that this is another area where providers could do more – our research has found they don’t always seem to be doing all they can to make people aware of social tariffs, their benefits and how to switch to one. A quarter of people who were eligible for a social tariff but hadn’t taken one up told us they’d lacked information about them. 

But to help, we’ve pulled together all of the key relevant information  – which providers offer a social tariff, where they’re available, how fast they are and how to sign up. Head to our guide on all you need to know about broadband social tariffs to find out more. 

‘Switching to a social tariff is too difficult’ 

This isn’t limited to people moving to a social tariff – people often tell us that they’re concerned switching between broadband deals or providers will be a hassle. However, our research has repeatedly shown that switching is straightforward – plus new switching rules coming in April will make it even easier. 

However, there is one important difference for people moving on to social tariffs – you’ll need to prove you’re eligible. But this is usually as simple as sharing a photo, screengrab or scan of your benefits statement. 

BT is an exception – it has an instant eligibility check. Other providers are rolling out the same system so switching to a social tariff is set to become even easier in the next few months.

Video: Switching to BT's social tariff

Find out how easy it could be to switch to a discounted tariff with your provider.

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.
• Carefully consider what level of mid-contract price rise is justified in the coming year, given current inflationary pressures, and 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.

Read more about our research: Broadband social tariffs: awareness and concerns