Gov Make it Easier to Verify Eligibility for Cheap Broadband Social Tariffs

The UK Government has moved to encourage wider adoption of cheaper broadband “Social Tariffs” – usually only available to those taking certain state benefits – by launching a new system that makes it easier for Internet Service Providers (ISP) to confirm the eligibility of their customers for such plans.

A growing number of internet access providers currently offer low cost social tariffs, including BT (Home Essentials), Virgin Media (Essential Broadband), Hyperoptic (Fair Fibre Plans), KCOM (Flex), G.Network (Essential Fibre), Sky Broadband (Sky Basics) and more. Customers on social tariffs could, in some cases, save over a hundred pounds a year.

The Government and Ofcom have also spent the past two years trying to encourage more ISPs to proactively promote or introduce such tariffs, which as above is clearly having some impact. But social tariffs still face a number of challenges, such as with the general lack of consumer awareness around them (not helped by most ISPs hiding them away on their websites).

The complexity involved with their introduction is another challenge, particularly for smaller ISPs that may find it difficult to handle both the additional costs of maintaining such plans and with checking eligibility for them. This is especially true for alternative network ISPs, which are busy rolling out new FTTP networks and can’t easily stomach loss-leaders.

However, the Government has just announced that a new service, which will go live next week on Monday 22nd August 2022 and be run by the Department for Work and Pensions (DWP), will allow ISPs to verify – with customers’ permission – whether they are in receipt of a relevant benefit and therefore eligible for extra financial support.

The new system will also simplify the process by removing the need for customers to prove their entitlement to broadband providers (e.g. sending screenshots of their Universal Credit account or providing a letter from the Jobcentre), which can occur as regularly as every month. But to be fair, quite a few ISPs only required you to do this once a year.

David Buttress, Cost of Living Business Tsar, 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.”

Nadine Dorries, Digital Secretary, said:

“Social tariffs are vital for families struggling with bills, keeping them connected even in tough times. Our discussion with broadband companies led to the range of social tariffs on the market today and we’ve secured a raft of new cost-of-living commitments from them to ensure help is available for anyone that needs it.

I urge anyone concerned about falling behind on payments to contact their supplier to see what support is available.”

The DWP said that its system would be designed to minimise the information provided, “sharing nothing other than confirmation that the person is entitled” to a qualifying benefit at the time of contact. This ensures that claimants’ data remains as safe as possible. But at launch it won’t be able to work with all benefits, although the key ones are covered.

Benefits that the DWP’s system will be able to verify:

Universal Credit
Pension Credit
Income Support
Income-Based Jobseeker’s Allowance
Income-Related Employment Support Allowance

The new scheme is already being supported by Virgin Media (VMO2) who, following discussions with Government, has announced today that they will use the system to verify eligible customers signing up to their Essential Broadband tariff. The company will also waive early termination fees for those moving from existing tariffs.

However, it’s worth remembering that the price we all pay for communication services is largely dwarfed by the colossal hikes in energy (e.g. gas and electricity), petrol, food and other bills. If people are struggling to afford even a fairly basic internet or mobile package, which don’t typically form a large chunk of household bills, then they’ve probably got much more serious concerns in those other areas. Social tariffs are thus a relative drop in the ocean, albeit an ocean where every drop does count.

The new system is thus helpful for both ISPs and consumers alike. But if the Government were really serious about tackling the cost of living then they could go further, such as by enabling ISPs to cut Value Added Tax (VAT) on broadband and mobile bills from 20% to 5% (here).

UPDATE 17th August 2022

We’ve had a comment from the CEO of the Independent Networks Co-operative Association (INCA), which represents various alternative broadband ISPs and network builders.

Malcolm Corbett, INCA CEO, said:

“The announcement from Government to allow broadband providers to verify – with customers’ permission – whether customers are eligible for a social tariff is welcomed by INCA. ​Our members are keen to see the technical details of the Government’s new system so that they can understand how long it will take them to make the necessary changes to their own systems and processes.

In the meantime, INCA encourages consumers as always to contact their ISP if they are struggling to pay their broadband bill.

To make sure that prices stay low however, a competitive market is crucial as it can ensure high quality services, better choice and better prices for customers in the long run.

It is important that this work between operators and Government continues to ensure effective competition thrives, and that Government remains committed to improving the delivery of broadband to millions of people in the UK. INCA encourages the Government to continue in this direction, and that further consideration be given to additional vulnerable households that are not identified by the new system, for example, some pensioners.”