Virgin Media O2 has cut the price of its social broadband tariff for those hit hardest by the cost of living crisis.
The price of its basic "Essential Broadband" will drop from £15 to £12.50 per month - a saving of 16%.
A new, faster tier called "Essential Broadband Plus" will also launch next month, delivering speeds of 50Mbps for just £20 per month.
All Essential Broadband products come with no fixed-term contract and no activation fees.
New and existing Virgin Media O2 customers who are on Universal Credit can benefit from this cheaper package.
The new lower price from Virgin Media O2 means it is one of the cheapest social tariffs in the market.
Social broadband tariffs from BT starts at £15, while prices start from £20 if you go with Sky.
TalkTalk is giving jobseekers six months of broadband for free if you're on Universal Credit - but you need to ask your JobCentre to put you forward for this deal.
Community Fibre also offers a social broadband tariff from £12.50.
Virgin Media O2 is now calling on the Government to cut VAT on broadband social tariffs in a bid to pass those savings on to customers.
It comes as Ofcom 's Affordability Report last month found that 8 million UK households are having difficulty affording their broadband.
This number has only increased over the last year, with Brits receiving benefits amongst those most likely to struggle to pay.
Jeff Dodds, Chief Operating Officer at Virgin Media O2 said: “We have a long history of stepping up in tough times and now is no different.
"Connectivity remains an essential part of our lives, so we are boosting the support we provide to those who need it most in the cost-of-living crisis.
“Through continued network investment, and a range of products at different price points and speeds, we consistently provide incredible value to customers and will keep playing our part in this challenging climate.”
David Buttress, the Government’s Cost of Living Business Tsar, said: “It is good to see Virgin Media O2 taking clear action to support their customers through the cost of living crisis.
"By cutting the price of its Essential Broadband social tariff and introducing a new Essential Broadband Plus tariff, it is increasing flexibility, value and choice and giving support to those who need it most."
While Abigail Wood, CEO of Age UK London, said: “Data poverty is a contributing factor to digital exclusion and with the increasing cost of living it’s good to see measures to ensure everyone on a low income, whatever their age, can access to most affordable internet tariffs.”
Virgin Media O2 confirmed in August that it was the first provider working to implement automated checks after the Government launched a new tool for customers to confirm their eligibility for social broadband tariffs.
