Government intervention is critical

Amid the cost-of-living crisis the government will introduce a system that gives low-income households simplified access to more affordable broadband. Ranging from £10 to £25 per month depending on bandwidth the initiative seems to be a step in the right direction.

It’s estimated that 6 million homes across the United Kingdom face difficulty keeping up with payments and often resort to reducing their spend on other essentials and in some cases, cancelling their subscription.

Between February and April 2022 its reported that the pool of society struggling to pay their broadband bill, grew by 56%. In addition, essential resources have increasingly been moved online which has forced the governments hand into intervening and making internet access more accessible to all parts of society.

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Eligibility

To take advantage of the new initiative users will be limited to the internet provider they go with namely, BT, Community Fibre, NOW, Sky, Virgin Media and VOXI however it’s been mentioned that the service may open to other telecommunication companies with time.

The scheme will offer reduced rates to households receiving government benefits such as Universal Credit, Pension Credit, Jobseeker’s Allowance, and Income Support. Despite the launch of the initiative Ofcom reports only 1.2% of the 4 million households receiving Universal Credit have successfully applied for broadband social tariffs since its conception. The lack of engagement can be attributed to a lack of communication 84% of eligible candidates, are unaware the scheme exists. It’s estimated that of the 5 million homes eligible for social tariffs only 55,000 are currently taking advantage of the offers available.

Although the intentions of the government are pure, many argue that the social tariffs will not fix wider problems such as rising costs and stagnant incomes. It’s estimated that even with the reduced rate broadband, the cost still amounts to 5% of the disposable income of benefit recipients. Instead, campaigners suggest increasing benefits in line with the rate of inflation to protect low-income families from the effects of poverty.

The social tariff extends to other elements of telecommunication including mobile phones so we urge you to speak to our provider to see whether they can offer additional support.

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