10 million homes could be saving money with one step, BBC expert says | Personal Finance | Finance
As January bills land on doormats and pile pressure on already tight budgets, millions of households will be looking for ways to cut costs and stretch their finances further this month. However, around 10 million homes are believed to be missing out on support and discounted bills they’re already eligible to receive.
BBC‘s Morning Live finance expert Louise Minchin explained: “Social tariffs are basically discounted rates for things like broadband which can help people on lower incomes and specific benefits… So if you are in an unpredictable financial situation it can be really helpful.”
These tariffs don’t simply offer lower prices but usually include little to no set-up fees, fixed monthly costs and no charges for early termination – to help reduce the extra expenses of modern necessities such as energy and broadband.
Figures from Ofcom reveal that among Universal Credit claimants who could be eligible for social tariffs, only 5% are currently using them.
Minchin emphasised that broadband costs can be especially steep for what’s become a modern necessity, with approximately 10 million households potentially qualifying for social tariffs: “You think about accessing the internet; oh maybe it’s just about watching TV. It’s not, it’s got a really big impact.
“If you haven’t got access perhaps you can’t get to your GP, you can’t get to your bank, you can’t access work opportunities. Social tariffs can be a great help.”
The criteria for qualifying for social broadband tariffs differ among suppliers, so it’s worth checking the specific terms on their websites. Minchin advised: “If you get turned down by one provider, you can go to another one.”
Most major suppliers offer social tariffs for people receiving Universal Credit or Pension Credit. Some may also extend these to those claiming income support, employment support allowance and jobseeker’s allowance, as well as certain disability benefits.
For example, Virgin Media offers a £12.50 30-day rolling deal with typical speeds of 15Mbps for people on Universal Credit, Pension Credit, income support, employment support allowance and jobseeker’s allowance.
Sky broadband provides a social tariff with the same qualifying benefits but only for existing customers. The package is priced at £20 for a 24-month deal with no early termination charges and 36Mbps.
Vodafone offers a 12-month deal with no early termination charges on 73Mbps for £20 for people on Universal Credit, Pension Credit, income support, employment support allowance, jobseeker’s allowance, reduced earnings allowance, personal independence payments and disability allowance.
Ofcom rules stipulate that all social tariffs must provide speeds adequate for emails, video calls and accessing online services. These packages can be found on Ofcom’s website or by searching your provider using terms like ‘social tariff’, ‘essential broadband’ or ‘basic broadband’.
Water companies throughout England and Wales also offer social tariffs or support schemes for those on low incomes or receiving certain benefits, which could “reduce your bill by hundreds of pounds”, as per the expert’s advice.
Households can make use of these programmes by contacting their water supplier directly. When it comes to energy costs, there are many social tariffs, payment plans, grants, discounts and hardship funds available.
Charitable bodies such as Leap and Turn2Us are on hand to help families navigate these options. Minchin concluded with a key message: “My main message really is: there is help out there so go and check your eligibility and also speak to your provider because if they don’t know that you are on one of those benefits or a low income household they may not be offering it to you. Every single pound counts.”
