Broadband ISP Virgin Media O2 Promote Social Tariff to All UK Users

In somewhat of an industry first, Virgin Media (VMO2) has today announced that they’re launching a new awareness campaign for their cheaper broadband social tariffs, which will see the ISP contacting every one of their 5 million UK customers to make them aware of the option and offer to support those struggling with bills. O2 also plan a mobile 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 able to add their STREAM TV box.

However, one of the challenges with social tariffs has been the issue of awareness, since many of those eligible for it still don’t know that the option even exists. Broadband and mobile providers are often understandably hesitant to do the sort of campaign mentioned above to tackle this, not least because of the impact it could have on their financial results (i.e. driving lots of users toward tiers that don’t make the ISP much or any money – they aren’t charities).

The operator is also working closely with local authority partners, including Greater Manchester Combined Authority, Slough Borough Council, Bradford Council and Telford and Wrekin Council, to leverage their local knowledge and help dial up the information on cost-of-living support available through their various community channels and networks. It is anticipated that this will help boost awareness of social tariffs amongst groups in greater need of additional support.

As well as highlighting the existing support on offer for broadband customers, VMO2 has also committed to going further to support customers by “launching a dedicated mobile social tariff” via O2 sometime in 2024, which will complement the wide range of mobile offers already available by the operator and across the wider industry.

Rob Orr, Chief Operations Officer at Virgin Media O2, said:

“Having pioneered one of the first broadband social tariffs back in 2020, we know the difference that affordable connectivity can make to people’s lives and we’ve continued to step up to provide support.

To go further once again, we’re boosting our awareness raising efforts to spread the word about the support measures we’ve put in place. Whether that’s through information on customers’ monthly bills or our collaboration with local authorities across the UK, millions more people will be regularly reminded about our Essential Broadband packages which offer cut-price broadband and entertainment for those facing financial difficulty.

While we have regularly increased the support on offer, we won’t solve digital exclusion alone, which is why we’re reiterating our call on Government to update its 9-year-old digital inclusion strategy and cut VAT on social tariffs to further help those who need it.”

At the same time, VMO2 has reiterated their call for the Government to play their part by updating its almost decade old Digital Inclusion Strategy to meet the needs of present day and cutting the rate of VAT (Value Added Tax) on social tariffs from 20% to no more than 5%, which is something that they’ve so far shown no indication of doing. The telecoms company has committed to passing on any social tariff VAT cut to consumers in full.

One risk here is that prices for customers on other packages may end up rising more than usual in order to compensate for a higher proportion of consumers taking their social tariff. But that only really becomes a big issue if the volume of adoption is significant enough to cause such a strain, and we aren’t there yet.

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.