Martin Lewis warns four million households are missing out on cheap broadband – how to save now
FOUR million people are missing out on cheap broadband, Martin Lewis has warned.
Households on benefits including Universal Credit are eligible for cheap deals called social broadband tariffs.
A number of providers offer these deals, including BT and Virgin Media, which has recently slashed the price of one of its packages.
But you’ll have to get in touch with your provider to go onto one. If your provider doesn’t offer one, you can switch companies.
New figures revealed by Ofcom show the number of households on social broadband tariffs has risen from 55,000 to 136,000 since January.
It means millions are still missing out on the tariffs – which could cut bills by £230 a year.
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Prices start from just £12 a month and many providers offer the deals on a rolling basis – meaning you can exit them penalty-free.
In his latest weekly newsletter, The MoneySavingExpert said: “Normally we say the way to bag cheap broadband is via short-lived promotional deals.
“Yet for those on a range of benefits, there are now a growing number of ‘social tariffs’, which give consistently cheap prices.”
More than 10 providers currently offer them, and they rarely appear on comparison sites, according to Martin Lewis.
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But the consumer champion warned customers not to shy away from checking broadband deals on the open market.
He said: “The cheapest standard deals can be very cheap when you factor in sign-up incentives, so they’re good for those willing to switch regularly.
“But if you want simplicity and a firm you can stay with longer term, then social tariffs win, as long as you still qualify.”
In August, Sun Money called on the government, regulator Ofcom and suppliers to do more to support struggling customers.
We launched a tool with cost of living champions Nous to help highlight how much customers could save.
We also called on firms to make it easier for customers to switch to tariffs.
How you apply for one will vary depending on your provider as each one will have its own rules on eligibility.
What are the eligibility criteria for these deals?
Most of the leading providers that offer social broadband tariffs will require that any potential customer receives Universal Credit.
Some suppliers will also allow those receiving any of the following benefits to apply for a low-cost tariff:
- Pension credit
- Jobseeker’s allowance,
- Employment and support allowance
- Disability living allowance
- Personal independence payments
Providers will recheck your eligibility every 12 months.
What’s on offer and how do I sign up?
BT offers two social tariffs dubbed their “Home Essentials” range.
One is priced at £15 a month for 36Mb and the other costs £20 for 67Mb. Both tariffs come with a £9.99 set-up fee.
BT lets you sign up online, while you have to call Sky and Now.
Virgin Media lets you sign up for its £12.50 and £20 tariffs online, but you’ll need proof of receipt of Universal Credit.
Now Broadband charges £20 a month on a rolling contract – you’ll need to call the firm to sign up.
Sky is offering a £20 a month deal, but customers have to sign up for a minimum of 18 months so you may need to pay an exit fee to get out of it earlier.
Exit fees are what you have to pay if you want to move across from a normal broadband tariff to a social tariff, so it’s worth seeing what yours would be if you switched.
How do I check for other deals?
Use comparison sites to familiarise yourself with what deals are available.
Broadband Genie, MoneySuperMarket and Uswitch all help you customise your search based on price, speed and provider.
This should make it easier to decide whether to renew your contract or move to another provider.
Broadband deals that bundle the internet with other services like TV packages, home phone, and mobile phone plans are also a terrific way to save money – so don’t avoid these.
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And look out for free gifts – some are worth hundreds.
Competition for broadband customers is intense. So, providers frequently offer free gifts like Amazon vouchers, prepaid credit cards, and bill credits to encourage you to sign up.