Government announces plans for cheaper broadband for struggling families

The government has announced plans to encourage social tariffs for broadband with the aim of cutting bills for millions of low-income households.

A new service, run by the Department for Work and Pensions (DWP), will go live next week and will allow internet service providers to verify – with customers’ permission – whether they are in receipt of a relevant benefit and therefore eligible for extra financial support.

The government has urged broadband providers to offer and promote social tariffs, with current figures showing that only 1.2 per cent of those eligible have taken advantage of a social tariff (discounted broadband and mobile deals for people on Universal Credit and other benefits). Social tariffs are available to eligible customers in 99% of the country.

It is believed customers on social tariffs could save over £100 a year.

The new system should also simplify the process, as customers currently need to prove their entitlement to broadband providers as regularly as once a month.

Virgin Media O2 are already on board, announcing they will use the system to verify eligible customers signing up to their Essential Broadband tariff, as well as waiving early termination fees for those moving from existing tariffs.

Lutz Schüler, Chief Executive Officer of Virgin Media O2, said: "Connectivity is a lifeline people can’t go without, and as one of the first providers to have introduced a social broadband tariff in 2020, we are committed to making it as easy as possible for customers to get support with the cost-of-living crisis. We’re working to implement the API as soon as possible making it faster and easier to sign up for our social tariff as part of a comprehensive plan to boost the awareness, availability and attractiveness of Essential Broadband."

The Government’s Cost of Living Business Tsar, David Buttress said: "Times are tough and families across the country are feeling the pinch, so we’re making it easier for companies to reduce phone and broadband bills for struggling families.

"Some of the biggest network operators have already committed to take advantage of this new scheme and we want to see other providers follow their lead so that everyone eligible for a social tariff can access one.

"This is just one of the ways that we’re working with businesses to offer help through our Help for Households campaign, building on the comprehensive £37 billion package of support already being provided by Government."

Also today, the government has announced further deals to help with the cost-of-living crisis. This includes a deal with Scholastic to offer 20 per cent off children's books. They will also donate an additional 20% of all order values over £10 in Rewards to local schools for them to spend on books and resources to help stock libraries and classrooms.

There will also be Back-to-School deals on Amazon, with discounts on backpacks, school uniforms and stationery. There are also savings on lunchbox essentials on Amazon Fresh.