With the arrival of January's bills stretching household budgets to the limit, millions across the UK are searching for ways to cut costs. Yet, according to experts, a staggering number of people are missing out on significant savings they are already entitled to claim.
What Are Social Tariffs and Who Qualifies?
Finance expert and former BBC Breakfast presenter Louise Minchin has highlighted the crucial role of social tariffs. These are specially discounted rates for essential services like broadband, designed to support those on lower incomes or receiving specific benefits.
"Social tariffs are basically discounted rates for things like broadband which can help people on lower incomes and specific benefits," Minchin explained on BBC's Morning Live. "So if you are in an unpredictable financial situation it can be really helpful."
These deals not only offer lower monthly costs but typically come with minimal setup fees, fixed pricing, and no penalties for cancelling early. Despite this, Ofcom data reveals a shocking uptake gap: only 5% of eligible Universal Credit recipients are currently using a social broadband tariff.
Major Providers and Their Offers
Eligibility varies between suppliers, but most major providers offer support for those on Universal Credit or Pension Credit. Some also extend offers to people claiming Income Support, Employment and Support Allowance (ESA), Jobseeker's Allowance, and certain disability benefits.
Key offers highlighted by Minchin include:
- Virgin Media: A 30-day rolling contract for £12.50 per month (15Mbps speeds) for those on a range of benefits including Universal Credit and ESA.
- Sky Broadband: A £20 per month, 24-month deal (36Mbps) with no early termination charges, available to existing customers on qualifying benefits.
- Vodafone: A 12-month, £20 per month package (73Mbps) with no exit fees for a broad range of benefit recipients, including those on Personal Independence Payment.
All social tariffs regulated by Ofcom must provide speeds sufficient for essential online activities like email, video calls, and accessing services.
Beyond Broadband: Help with Water and Energy
The potential for savings extends far beyond internet bills. Water companies across England and Wales also run social tariff or assistance schemes, which Minchin stated could "reduce your bill by hundreds of pounds" for low-income households. Customers need to contact their supplier directly to apply.
For energy costs, a wide array of social tariffs, grants, and hardship funds are available. Charities such as Leap and Turn2Us can help guide families through the options to find support.
Minchin's final advice was clear and urgent: "My main message really is; there is help out there so go and check your eligibility and also speak to your provider because if they don't know that you are on one of those benefits or a low income household they may not be offering it to you. Every single pound counts."
With an estimated 10 million households potentially able to benefit, checking eligibility for these social tariffs could provide vital financial relief during a challenging time.
