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Eight million households are having problems affording to pay for their communications services - making up nearly a third of all customers, according to Ofcom’s latest affordability study.
Senior Journalist, covering the Credit Strategy and Turnaround, Restructuring & Insolvency News brands.
This has doubled the number of struggling families over the last year - going up from 15% since April 2021, and now stands at its highest level since the regulator’s records began.
Of those struggling, Adults aged 18-24 (43%) households with children (40%), benefits recipients (39%) and people with a disability or limiting condition (39%) are most likely to be having difficulty affording their communication services.
Additionally 14% of respondents said they had cut back on other spending - including food and clothing - to afford their communications services, while nine percent said they decided to cancel a service.
Its research also shows millions of low-income households are still missing out on broadband “social tariffs” - a special discounted superfast connection priced at around £10 to £20 - because providers are not doing enough to advertise this support, or refusing to offer these packages at all.
While take up on these tariffs has more than doubled in the last six months - rising from 55,000 to 136,000 - only three percent of eligible households have signed up. Alongside this, it found out that almost 70% of eligible customers are not aware that broadband social tariffs exist.
Off the back of this, the regulator has introduced new guidance on how firms should support customers in debt or struggling to pay. As part of this, it’s calling on firms to not only offer social tariffs but rotate between a range of communications channels - such as letters, emails, phone and text - to increase the chance of reaching customers in debt.
It also makes clear that restricting the services of someone who is particularly reliant on them - to push them into paying outstanding bills - should be avoided or limited, while disconnection should only be used as a last resort.
Ofcom’s networks and communications group director Lindsey Fussell said: “The cost-of-living crisis is putting an unprecedented strain on household budgets. It is essential that the industry puts its customers first, and focuses on what more it can do to help support them.
“This includes a much stronger emphasis on offering and promoting social tariffs, as well as thinking carefully about whether significant price rises can be justified at a time when the finances of their customers are under such pressure.”
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