Two thirds of financially vulnerable households are unaware of broadband tariffs available for low-income families
Two thirds of financially vulnerable people (65%) aren’t aware that social tariffs for broadband exist[1], with just under one in six eligible households (15%) applying for them[2]
Ten million financially vulnerable households[3] could be saving £234 a year through broadband social tariffs[4]
The average consumer eligible for social tariffs could save £19.50 a month on their broadband[5]
Community Fibre, available in London, offers the cheapest social broadband tariff, costing only £10 a month, while BT offers Home Essentials at £15 a month[6]
With inflation hitting its highest levels in a decade, Uswitch.com advises customers who are struggling with their bills to check whether they are eligible for mobile and broadband social tariffs.
Two thirds of low-income consumers (65%) are not aware that broadband social tariffs exist[1], according to new research by Uswitch.com, the comparison and switching service.
Social tariffs are means-tested offers for broadband customers who receive government benefits, such as Universal Credit, Pension Credit, Employment and Support Allowance, Jobseeker’s Allowance and Income Support.
Some 16 million people are estimated to be eligible for the tariffs[3], but as little as one in six (15%) apply for them[2].
This means ten million financially vulnerable households have not signed up to a social tariff[3] that they might be eligible for, yet it could save them up to £234 a year on their broadband bills[4].
Low-income families and financially vulnerable consumers applying for social tariffs could save themselves hundreds of pounds a year, according to the Uswitch data. The average monthly spend on broadband among those eligible for social tariffs is £34.50 - so applying for BT Home Essentials at £15 a month could save eligible customers £19.50 a month, or £234 a year[5].
With inflation hitting the highest levels in a decade, Uswitch.com is advising eligible customers who might be struggling with their bills to look whether broadband social tariffs are suitable for them.
Ernest Doku, broadband expert at Uswitch.com, comments: “At a time when the cost of living is soaring for many households, more need to be aware of the deals that might be available to those customers who struggle the most.
“With almost three quarters of people having never heard of social tariffs, it’s not surprising that take-up isn’t as high as it could be.
“Social tariffs are an important way for financially vulnerable households to get a decent service at a lower cost, and providers like BT, Virgin Media, Community Fibre, Hyperoptic and others are doing their bit to help out.
“If you’re claiming one or more government benefits in your household, you could be entitled to switch to these tariffs, which could reduce your broadband bills by £234 a year on average.
“If a social tariff isn’t for you, or not currently available at your location, try considering what you need from your broadband and mobile before locking into a contract and don’t overpay for data or speeds you don’t need.”
To find out how to save money on your broadband bill, see our helpful guide here.
Notes to editors:
Opinium surveyed a sample of 2,000 UK adults from the 12th to 16th November 2021. Results were weighted to reflect a nationally representative criteria.
1. Respondents were asked, ‘A social tariff is a type of broadband or mobile package offered to people who might be struggling to afford their broadband or phone services and are eligible for low-cost service. Were you aware social tariffs were available for broadband and mobile?’ 74% of respondents said ‘no’. Of those potentially eligible for mobile or broadband social tariffs, 65% of respondents said ‘no’.
2. Respondents who were aware of social tariffs were asked ’Had you been made aware of social tariffs by your provider?’ 86 people answered ‘Yes – and I have applied for one’. 86 out of 575 potentially eligible people = 15% of people eligible for social tariffs have applied for them.
3. Respondents were asked whether they or another member of their household were eligible for a Personal Independent Payment (PIP), Universal Credit, Income Related Employment and Support Allowance, Housing Benefit, Pension Credit Guarantee Credit, Income Support or Income Based Jobseeker’s Allowance. 29% of respondents were eligible for one or more. 29% x 55.2 million UK adults = 16 million people potentially eligible for mobile or broadband social tariffs. 65% of 16 million = 10.3 million adults who are eligible but not aware of social tariffs.
4. Eligible people could save £2.4 billion on broadband (see footnote 6) and £2.25 billion on mobile (footnote 7). £2.4 billion + £2.25 billion = £4.65 billion.
5. Respondents were asked ‘How much do you - or whoever pays your bills - currently spend on your household’s broadband/landline bill(s) every month?’ Average figure for people eligible for social tariffs was £34.50 (compared to £39 not eligible). Swapping to BT’s £15-a-month Home Essentials tariff is a £19.50 a month saving. £19.50 x 12 month x 10.3 million people = £2.4 billion potential saving on broadband.
6. See table in release.
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.