Virgin Media UK Make it Easier to Take Social Broadband Tariff

Broadband ISP Virgin Media UK (VMO2) has today become the latest national provider to adopt a new system from the Department for Work and Pensions (DWP), which makes it easier for those on state benefits to be approved to take their cheaper “Essential Broadband” social tariff.

The Essential Broadband tariff typically enables those on state benefits to take an unlimited 15Mbps (2Mbps upload) connection on a 30-day rolling contract for just £12.50 per month, rising to £20 per month if you opt for their faster 54Mbps (5Mbps upload) tier. Plus, if you pay an extra £20 one-off, then you’re also able to add their new STREAM TV box.

However, one of the difficulties with such Social Tariffs stems from having to manually check customer eligibility, which adds time and cost to the process. Last year, the Department for Work and Pensions (DWP) began working with ISPs (here) to implement a new automated system that could verify – with the customer’s permission – whether they are in receipt of a relevant benefit.

The new system simplifies 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. Some ISPs, such as WightFibre and Sky Broadband, have already implemented this and now Virgin Media have done the same.

Jeff Dodds, Chief Operating Officer, said:

“As the first major provider to introduce a social tariff, and the only operator to have cut the price of this, we have a history of stepping up in tough times. Connectivity remains essential in so many ways, so we are expanding the eligibility criteria for our social tariffs to make it easier and faster for millions more low-income families to access this support during the cost-of-living crisis.”

We suspect that BT might disagree that VMO2 was the “first major provider to introduce a social tariff” (VMO2 is talking about 2020, but they forget BT had one for many years prior), although that’s a debate for another day. Otherwise, VMO2 also took the opportunity to reiterate its earlier calls for a cut in VAT on social tariffs, from 20% to no more than 5%, which would be in line with other utilities such as gas and electricity.

The operator has committed to directly pass on any VAT cut in a price reduction to all its Essential Broadband plans, which would mean a further price drop to just £10.93 for 15Mbps and £17.50 for 54Mbps packages. But so far, the Government has given no indication that they’d introduce such a change, although this month’s Budget 2023 announcement may be the next logical opportunity.

Finally, a quick reminder. We know social tariffs can be a divisive topic for some, but that is not an excuse to abuse the comment system in order to post offensive remarks toward those who take state benefits. Such posts are against our rules and will be removed.