Register with us for free to get unlimited news, dedicated newsletters, and access to 5 exclusive Premium articles designed to help you stay in the know.
Join the UK's leading credit and lending community in less than 60 seconds.
More than half of low-income households are “in the dark” around social tariffs, according to new research from broadband regulator Ofcom.
Senior Journalist, covering the Credit Strategy and Turnaround, Restructuring & Insolvency News brands.
These offers are available to an estimated 4.3 million households that receive one of a range of government benefits, with this being something that could cut the annual cost of broadband in half. However, despite take up quadrupling since January, Ofcom’s research shows just 220,000 – 5.1% –have taken up this offer.
A major factor in this is because awareness of these deals remains low, with more than half of eligible households continuing to be unaware of their existence. It comes as the number of providers offering a broad social tariff has increased significantly, with around 85% of customers now able to switch to one with their existing provider without a fee.
Of those aware of social tariffs, most heard about them through either social media or their television – 26% and 21% respectively – but just nine percent found out about them through their provider. Ofcom’s review also found that information about social tariffs remained challenging to locate on provider websites and discovered examples of incorrect information about deals on webpages.
Responding to these findings, consumer rights group Which?’s director of policy and advocacy Rocio Concha 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.”
Get the latest industry news