Millions of UK broadband customers missing out on cheaper deals
Key Points
- Fewer than 9% of eligible UK broadband customers are on a social tariff
- Only 34% of people who need financial help know they can ask for it
- Up to 8.4 million households could be missing out, Policy in Practice estimated
- Providers set their own eligibility rules, so support varies widely
- MPs want Ofcom to make social tariffs visible on price comparison sites
Up to 8.4 million UK households could be missing out on cheaper broadband, with fewer than 9% of eligible customers signed up to a social tariff, the Committee of Public Accounts said in a report published on Friday (11 September).
Social tariffs offer discounted broadband to customers on lower incomes, and the report found that only 34% of people who need financial help know they can ask their provider for it.
The committee said take-up has increased but remains very low, and it cited estimates from social policy analytics company Policy in Practice that 8.4 million households could be missing out on social tariffs and related support in broadband, alongside 6.1 million in water.
Ofcom told the committee it has encouraged broadband providers to offer social tariffs, but there is no government policy requiring them to do so. Citizens Advice and MoneySavingExpert founder Martin Lewis told MPs that provision by broadband companies is essentially voluntary.
Each provider decides its own eligibility criteria and discount levels, which means customers in similar circumstances can receive very different support depending on who supplies them. Lewis told the committee this lack of standardisation confuses consumers and makes it hard to communicate clear messages about what is available.
Customers must apply for a social tariff themselves, and the report said this is made harder by providers using terms such as “equivalised income” that even well-informed people struggle to understand.
Social tariffs also do not always appear on Ofcom-accredited price comparison websites, so customers cannot see the discounted options when deciding whether to switch. Ofcom told MPs it would consider talking to comparison sites about making social tariffs more visible.
The committee recommended that Ofcom and Ofwat complete a review within six months of how social tariffs are advertised and communicated, including the accessibility of the language used, and share the findings with MPs.
It also asked Ofcom to review its accreditation requirements for price comparison sites so that social tariffs feature in search results.
