{"id":32548,"date":"2022-10-13T10:43:35","date_gmt":"2022-10-13T09:43:35","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=32548"},"modified":"2022-10-13T12:19:27","modified_gmt":"2022-10-13T11:19:27","slug":"labour-party-promises-mandatory-social-broadband-isp-tariffs","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2022\/10\/labour-party-promises-mandatory-social-broadband-isp-tariffs.html","title":{"rendered":"Labour Party Promises Mandatory Social Broadband ISP Tariffs"},"content":{"rendered":"<p>The UK Labour Party has proposed a new policy that would, if they won the next election, see them introduce a mandatory &#8220;<em>industry-wide<\/em>&#8221; social tariff for cheaper broadband (available to those on benefits). On top of that, they would also stop mid-contract price hikes by ISPs and reduce early termination charges for contract leavers.<!--more--><\/p>\n<p>At present a growing number of ISPs already offer cheaper social broadband tariffs to those on state benefits (see below) and take-up is improving (i.e. 136,000 homes have taken such a package), but that\u2019s still just 3% of those eligible. The biggest obstacle to adoption of such tariffs is currently the lack of awareness by consumers and poor advertising by ISPs.<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> See our <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2022\/08\/a-quick-guide-to-uk-social-tariffs-getting-broadband-for-15.html\" target=\"_blank\" rel=\"noopener\"><strong>Summary of Social Tariffs for UK Mobile and Broadband ISPs<\/strong><\/a>.<\/div>\n<p>However, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> has thus far stopped short of enforcing an industry-wide <strong>regulated social tariff<\/strong> (doing this would also require a direction from the Government), which is perhaps partly because they still see plenty of scope for the self-regulatory approach to improve. On top of that, the market is chocked full of smaller ISPs that may struggle to introduce such a tariff, particularly given the low margins nature of residential broadband.<\/p>\n<p>In any case, Labour&#8217;s new proposal is much more viable than their prior commitment to deliver &#8220;<em>free full-fibre broadband to all by 2030<\/em>&#8221; (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2019\/11\/2020-labour-party-pegs-20bn-to-deploy-free-full-fibre-for-all.html\">here<\/a>), and they also appear keen to ensure that wholesale providers like <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/openreach\" target=\"_blank\">Openreach<\/a> are part of the solution (i.e. so that the cost burden doesn&#8217;t rest solely with retail ISPs).<\/p>\n<p>On top of that, Labour also suggested that they would <strong>ban mid-contract price hikes<\/strong> by broadband ISPs (likely to be a popular position), reduce the impact of <strong>Early Termination Charges<\/strong> (ETC) for those who exit their contracts before they&#8217;ve finished, and ensure wholesale price rises (e.g. from <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/openreach\" target=\"_blank\">Openreach<\/a> etc.) are cost-based rather than inflation (CPI) based to help balance the current concerns over annual price hikes.<\/p>\n<blockquote class=\"bq1\"><p><strong>Lucy Powell MP, Shadow Secretary of State for Digital, said (<a href=\"https:\/\/www.theguardian.com\/technology\/2022\/oct\/12\/labour-pledges-cheap-broadband-tariff-for-low-income-families\" target=\"_blank\" rel=\"noopener\">Guardian<\/a>):<\/strong><\/p>\n<p>&#8220;Whilst the Conservatives crash our economy, Labour will ensure accessing and connecting to digital infrastructure powers growth across our economy to ensure people and places aren\u2019t left behind.&#8221;<\/p><\/blockquote>\n<p>At the time of writing, Labour hasn&#8217;t furnished us with an official press release for all this and nor could we find one on their website, thus we&#8217;re unsure whether the party would also extend these proposals to include mobile network operators (right now the focus seems to be on broadband ISPs). We also think they may be missing an easy win by ignoring the calls for social tariffs to benefit from a tax (VAT) cut from 20% to 5%.<\/p>\n<p>In addition, Labour also mentioned a desire to crack down on so-called <strong>loyalty penalties<\/strong>, where new customers get discounts that result in them paying significantly less than existing customers. But such discounts are a fairly normal part of any aggressively competitive market, and removing that freedom might be tricky.<\/p>\n<p>One other issue here, which Labour sadly hasn&#8217;t covered, is that not all ISPs are clear about how much you\u2019ll pay post-contract when you first sign-up. Sometimes, even after you\u2019ve gone through almost the entire order system, the provider still won\u2019t tell you what the normal post-contract price is. Such details are often consigned to the convoluted small print at the bottom of their product pages instead. We&#8217;d like to see this tackled too.<\/p>\n<p>At this point we should highlight that not all providers adopt the same model and many smaller providers, which may also offer advanced features (static IP etc.), simply charge a set monthly fee that rarely ever changes &#8211; there&#8217;s plenty of choice around. A savvy consumer could also try contacting their provider in an attempt to haggle for a lower price (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2017\/04\/retentions-tips-cutting-broadband-bill-without-switching-isp.html\"><strong>Retentions Tips<\/strong><\/a>).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The UK Labour Party has proposed a new policy that would, if they won the next election, see them introduce a mandatory &#8220;industry-wide&#8221; social tariff for cheaper broadband (available to those on benefits). On top of that, they would also stop mid-contract price hikes by ISPs and reduce early termination charges for contract leavers.<\/p>\n","protected":false},"author":1,"featured_media":20144,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[36,38],"class_list":["post-32548","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","category-key_uk_isp_industry_developments","tag-ofcom-regulation","tag-politics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Labour Party Promises Mandatory Social Broadband ISP Tariffs - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The UK Labour Party has proposed a new policy that would, if they won the next election, see them introduce a mandatory &quot;industry-wide&quot; social tariff for\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2022\/10\/labour-party-promises-mandatory-social-broadband-isp-tariffs.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Labour Party Promises Mandatory Social Broadband ISP Tariffs - 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