The ongoing cost of living crisis is forcing people to take a closer look at their finances to cut as much off their outgoings as possible in order to stay on top of rising energy bills and the impact on everyday essentials as a result of soaring inflation. One way millions of people may be able to slash their bills is to choose a ‘social tariff’ broadband package, which is available from most of the big providers from as little as £12.150 per month.
A recently launched service by the Department for Work and Pensions (DWP) now allows internet service providers to verify - with customers’ permission - whether they are in receipt of a relevant benefit which makes them eligible for a broadband bill reduction. The UK Government has called on all broadband providers to offer and promote discounted broadband and mobile deals for people on Universal Credit and other means-tested benefits - with statistics showing only 1.2% of those eligible have taken advantage of such a package.
DWP has also helped spread the word about social tariff broadband packages on social media.
In a post on Twitter, DWP said: “Could you be saving money on your broadband bill?
“Social tariffs offer cheaper, reliable broadband and phone packages to those on low incomes”
It also encouraged anyone unsure or keen to find out more to visit the dedicated page on Ofcom which shares seven ways a social tariff could help you.
Seven ways a social tariff could lower your monthly spend
- It is available to those on a variety of benefits - if you or someone in your household claims Universal Credit, you could switch to any of the tariffs available
- It is cheaper than a regular package - current prices range from £10 to £20
- Fast, unlimited broadband - most tariffs offer superfast broadband at speeds over 30 Mbit/s - fast enough for you to keep in touch with friends and family, stream HD films or shop online
- You will pay next-to-nothing to get set up - If you do have to pay any setup costs, these should only be small. Your provider should tell you before you sign up
- It could cost nothing to switch - if your provider offers a social tariff, you can switch to it at any time, free of charge
- The price won't go up mid-contract - you won't pay any more than what you agree at the start of the contract
- It costs nothing to leave - you won't pay a fee to leave the tariff before the end of your contract.
You can read more helpful guidance on social tariff broadband packages on the Ofcom website here.
Social tariff broadband packages
The DWP eligibility checking scheme is already supported by Virgin Media O2 who now use the system to verify customers signing up to their Essential Broadband package for just £12.50 per month. The price drop from £15 was announced in October and may prompt other providers to cut their social tariffs even further.
The quickest way to find out if you can lower your monthly broadband bill is to contact your provider directly.
Below is a quick guide to social tariff deals from BT, Sky, Now Broadband and Virgin Media O2.
Sky Broadband Social Tariff - £20 per month
Sky Broadband Basics could be for you if you’re struggling to pay your Sky Broadband bills, but want to stay connected.
The package costs £20 per month for 18 months.
This includes:
- Sky Broadband Superfast 35 with an average download speed of 36Mb/s
- Or if fibre isn’t available where you live, Sky Broadband Essential Plus with average download speeds of 11Mb/s
- Sky Pay As You Talk - only pay for the calls that you make
It comes with a new 18-month contract, but if you need to leave before it ends, Sky won’t charge you any early exit fees on your broadband.
After 18-months the price will go back to the standard rate, but they will tell you what this will be when you get in touch to take Sky Broadband Basics.
You’ll also get an email to let you know when the price is coming to an end, and you can get in touch to talk about the options available.
Eligibility
You must be an existing Sky broadband customer and need to be claiming Universal Credit or Pension Credit to qualify for Sky Broadband Basics.
Sky will ask you for your National Insurance number so they can check if you’re eligible.
Find out more on Sky.com here.
NOW Broadband Basics - £20 per month
This is a package designed for NOW Broadband members and costs £20 per month on a monthly rolling contract.
This includes:
- NOW Fab Fibre Membership with an average download speed of 36Mbps
- NOW Calls - the Pay as you Use calls plan included at no extra cost, so you only pay for the calls you make, with no monthly charge
As it’s a monthly contract, you just need to let them know 31 days in advance if you want to cancel, and you won't need to pay any early exit fees.
Eligibility
To be eligible for NOW Broadband Basics, you must be receiving either Universal Credit or Pension Credit.
Similar to Sky eligibility, you must be claiming Universal Credit or Pension Credit to qualify for Sky Broadband Basics.
NOW will ask you for your National Insurance number so they can check if you’re eligible.
Find out more on NOWTV.com here.
BT Home Essentials - £15 per month
BT Home Essentials is the new name for BT Basic, providing broadband and home phone services to customers on benefits.
Two broadband packages are available with speeds of 36Mb and 67Mb, while customers who just want a landline can sign up for home phone only with unlimited minutes.
The eligibility criteria for BT Home Essentials are tight and customers must be in receipt of certain benefits to qualify.
Eligibility for BT Home Essentials
BT Home Essentials is open to new or existing BT customers who are receiving one of the following benefits:
- Universal Credit
- Pension Credit (Guarantee Credit)
- Income Support
- Jobseeker's Allowance (income based or with contributory allowance that is less than the income based portion)
- Employment and Support Allowance (ESA)
The person in receipt of an eligible benefit must be the named account holder on their BT Homes Essentials plan.
BT package options
Home Essentials Unlimited Fibre Essentials
- Cost: £15 per month (12 month contract)
- Speed: 36Mb average
- Upfront costs: Free
Home Essentials Unlimited Fibre
- Cost: £20 per month (12 month contract)
- Speed: 67Mb average
- Upfront costs: Free
Home Essentials - Calls Only
- Cost: £10 per month (12 month contract)
- Upfront costs: Free
Eligibility checks
When a customer applies for BT Home Essentials, they will need to pass an eligibility check. This will include the type of personal information normally supplied when applying for broadband such as surnames and addresses.
However, applicants will also need to supply their date of birth and National Insurance number so their specific eligibility for Home Essentials can be checked.
An option of a security deposit is available for those with low credit scores.
Find out more on the BT Home Essentials here.
Virgin Media Essential broadband - £12.50 per month
Virgin Media Essential broadband helps you get online for £12.50 a month with a 15Mbps fibre broadband speed.
Eligibility for Virgin Media Essential broadband
It’s a broadband-only package available if you’re already a Virgin Media customer and you receive Universal Credit.
To qualify for this pack, Virgin Media needs the account owner to show some proof that they receive Universal Credit before they can set them up.
To apply, just fill in an online application form and they will email you back with how to complete the eligibility checks.
As soon as they go through, they will swap you over and you won’t have to pay any extra fees or charges for changing from your current Virgin Media services.
Essential broadband plus - £20 per month
The new offer from Virgin Media O2 offers an impressive 54Mbps Fibre Broadband for £20 a month - available to new and existing customers with free set-up.
Essential broadband plus with Stream - £20 per month
This is the same deal as the Essential broadband plus package, so its 54Mbps Fibre Broadband for £20 a month, but, you can also add on the exclusive entertainment service, Stream, for a one-off fee of £20.
Monthly cost won't change
Virgin Media says it will keep you connected at £12.50 or £20 a month for as long as you’re eligible. This means the price of your Essential broadband package won’t change while you’re receiving Universal Credit payments.
Flexible 30-day contracts
All Virgin Media O2 Essential broadband packages come with 30-day rolling contracts, which means whenever you’re ready to go back to your usual Virgin Media services, just give them a call and they will sort it all out for you.
Find out more about Virgin Media Essential broadband packages here.
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