Concerns about speed putting consumers off broadband social tariffs

Concerns about broadband speed are putting eligible households off signing up for discounted broadband deals, research from Which? has shown.

It surveyed more than 2,000 people eligible for fixed broadband social tariffs to uncover the barriers to signing up. Worryingly, four in 10 of those surveyed who are eligible for and aware of social tariffs do not intend to sign up at all – meaning they could miss out on much-needed discounts.

As part of Which’s cost of living campaign, it is calling on all providers to offer a range of social tariffs to suit every households’ needs and ensure they are properly advertising all their social tariff offerings to new and existing customers. Eligible customers should also be allowed to switch to a social tariff without being charged early termination fees.

Social tariffs are special discounted deals available for certain low-income customers – typically those in receipt of benefits, such as Universal Credit. However, according to Ofcom, the telecoms regulator, only 136,000 (3.2%) out of the 4.2 million households receiving Universal Credit are on a social tariff.

Six in 10 eligible individuals surveyed said they were completely unaware social tariffs exist – with half of this group saying they were likely to switch after hearing about social tariffs.

Both Which? and Ofcom have called for all providers to do more to promote their social tariffs to those who are eligible. Research it conducted earlier this year showed that customers who are eligible could save £250 per year by switching from their current broadband deal to the cheapest social tariff.

When Which? asked customers who are both eligible for social tariffs and aware of them why they hadn’t taken one up, the main reasons cited were fears that the speed offered was too slow, concerns about not being able to leave a current contract, the deal not being good enough, and a lack of information.

Says Max Beckett, broadband expert at Uswitch.com:

“Broadband speed is one of the main things consumers should consider when choosing their internet package, so it’s an understandable concern when it comes to social tariffs.
 
“These bespoke deals from providers, on offer for people who receive certain government benefits, can vary hugely when it comes to their average download rates. Those currently available range from 10Mbps  — equivalent to the speed of many copper wire (or ADSL) broadband services — all the way to 150Mbps, which is nearly three times the UK’s average broadband speed.
 
“The slowest social tariffs are considered by Ofcom to be the minimum speed required to meet a household’s digital needs, but this heavily depends on your internet usage and household size. For bigger families whose online activities include video calls or gaming, the slowest social tariff packages might not be able to handle the demands placed on them.
 
“Since March 2020, households that cannot get 10Mbps speeds are entitled to request an upgraded connection under the Government’s Universal Service Obligation. So whether you’re on a social tariff or not, it’s important to run internet speed checks if your broadband is really struggling.
 
“The good news for eligible households is that more broadband social tariffs are being rolled out, with Vodafone’s 38Mbps £12-a-month Broadband Essentials deal, which launched last month, now the cheapest on the market.
 
“Also, companies like BT, Virgin Media and Hyperoptic are offering social tariffs at different speed levels, giving customers much-needed choice.
 
“However, this latest research also shows there is still much more that needs to be done by providers to promote these tariffs. It is not acceptable for them to be hidden away on their websites, particularly at a time when many household finances are being stretched.” 

Broadband Social Tariffs Available in the UK (provided by Uswitch):