Communications regulator Ofcom has called on UK internet providers to offer more support to households on a low income to help pay their broadband bills.
As reported by the Daily Record, only 1% of people have taken advantage of discount broadband deals.
With the cost of living crisis worsening, and energy bills soaring after the price cap was raised, Ofcom has stated that internet providers should launch — and more heavily promote — discount deals.
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The watchdog stated that the deals — often referred to as 'social tariffs' — are presently available to approximately 4.2 million households receiving Universal Credit.
However, only around 55,000 households are currently taking advantage of the packages — just over 1% of those who are eligible.
Ofcom stated that millions of households on a low income were missing out on average annual savings of £144 as a result.
The regulator said that providers who already have social tariffs on offer should be promoting them more, whilst those who not should introduce them — with a quick and easy sign-up process.
Networks and communications group director at Ofcom Lindsey Fussell said: “People rely on their broadband for staying in touch, working and learning from home. But for those who are really struggling with rising bills, every penny counts.
"Special discounts can make all the difference, and too many broadband firms are failing either to promote their social tariff or to offer one at all. We expect companies to step up support for those on low incomes, and we'll be watching their response."
As revealed in newly released research, approximately 1.1 million households are having issues affording their broadband, and Ofcom has predicted that the problem will likely worsen this year.
The watchdog said that six providers — BT, Community Fibre, G.Network, Hyperoptic, Kcom and Virgin Media O2 — offer at least one specially discounted deal priced between £10 and £20 a month for broadband speeds ranging from 10Mbit/s to 67Mbit/s.
As well as calling on others to introduce their own deal, Ofcom has urged these firms to make sure deals are properly promoted and easy to sign up for, saying customers must not be put off applying because it appears difficult to prove they are eligible.
Citizens Advice Scotland’s Strong Communities spokesperson Gillian Fyfe, said: “These take-up figures are shocking. Low income families across the country are really struggling because of the rise in energy bills, the end of furlough and the reduction in Universal Credit.
"Saving £144 could be a lifeline for them, and yet it seems very few of them know about it or feel able to choose that option."
“The responsibility here lies with the broadband providers. It’s not enough for them simply to offer social tariffs. "
She added: "They need to make people aware that these options exist, and exactly how they should go about selecting these tariffs.
"CAS would also want to see eligibility for social tariffs extended so more people can take advantage of them and for social tariffs to also be offered in the mobile market.
“The Citizens Advice network will do our bit to make people aware of social tariffs, but the providers themselves must also take responsibility to increase take up.”
