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Nearly six million households struggling to afford telecoms services

Nearly six million households are struggling to afford essential telecom services, according to research from Which?.

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As such, the consumer choice group is calling on the government to cut the amount of VAT paid on mobile, broadband and telephones. 


Overall, its analysis of Ofcom survey data found an estimated 5.7 million households have experienced at least one affordability issue in April 2022. In addition to this, the number of households that have had any affordability issues increased by 16% in February 2022 to 20% in April 2022. 


The number of households that experienced multiple affordability issues also increased, going up by 56% between these two months. 


In order to afford these costs, consumers have had to reduce their spending on other essentials such as food and clothes, with an estimated 3.5 million households doing this in April - up from an estimated 2.2 million in February. In addition, three percent said they cancelled service - up from two percent in February. 


Those on lower and middle incomes - with an annual income of up to £25,999 and £51,999 a year respectively - were most likely to have cut essential spending to cover the cost of telecoms.


Alongside this, 22% of lower income households reduced spending elsewhere to afford connectivity services in April. This figure was 13% for those on middle income households - almost doubling from seven percent in February. 


Responding to these findings, Which?’s director of policy and advocacy Rocio Concha said the fact that millions of households have made sacrifices to prioritise their broadband and mobile connections “demonstrates just how essential these services are for day-to-day modern life. 


He added: “To help cut bill costs, the next Prime Minister should reduce the VAT paid on telecoms in line with other essential services. Businesses must support anyone struggling to afford their bills and ensure consumers are aware of and able to access the best deals.”

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