{"id":32885,"date":"2022-11-11T08:21:23","date_gmt":"2022-11-11T08:21:23","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=32885"},"modified":"2022-11-11T08:22:52","modified_gmt":"2022-11-11T08:22:52","slug":"survey-identifies-reasons-for-slow-take-up-of-broadband-social-tariffs","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2022\/11\/survey-identifies-reasons-for-slow-take-up-of-broadband-social-tariffs.html","title":{"rendered":"Survey Identifies Reasons for Slow Take-up of Broadband Social Tariffs"},"content":{"rendered":"

A new survey of 2,009 UK people eligible for fixed broadband social tariffs by ISPs (i.e. cheaper packages for those on benefits), which was conducted by consumer magazine Which?<\/a>, has revealed that 39% of those eligible and aware of such tariffs do not intend to signup due to concerns over slow speeds, existing contracts and other issues.<\/p>\n

According to Ofcom<\/a>, some 29% of UK households (8 million) – double last year\u2019s 15% – are still having problems paying their phone, broadband and TV bills (here<\/a>). In order to help tackle the cost-of-living crisis, the government and regulator have both been pushing for more broadband ISPs and mobile operators to launch cheaper social tariffs, with many having done so (EE<\/a>, TalkTalk<\/a>, Shell Energy and Plusnet<\/a> have yet to follow).<\/p>\n

NOTE:<\/strong> See our ‘Quick Guide to UK Social Tariffs – Getting Broadband for \u00a315<\/a>‘.<\/div>\n

On the bright side, the take-up of cheaper social tariffs has more than doubled in the last 6-months (from 55,000 to 136,000 homes<\/strong>), but that\u2019s still just 3% of those eligible. In addition, Ofcom<\/a> noted that almost 70% of eligible customers are still not aware that broadband social tariffs even exist.<\/p>\n

However, even among those who are aware and eligible for such tariffs, the new Which? survey found that there are various reasons why adoption may be lagging. The main reasons cited among this group for not switching include fears about the tariffs being “too slow<\/em>” (44%), customers still being tied into an existing contract (32%), the deal not being “good enough<\/em>” (24%) and lacking information (24%).<\/p>\n

The issue of speed is a complex one, as it will depend upon what options are available in your area. For example, social tariffs tend to range from Virgin Media<\/a>’s slow 15Mbps option (available mostly in big cities and towns – although they do also have a 50Mbps plan) to B4RN<\/a>’s 1000Mbps service (only available in some rural parts of England). Speeds in the range of 36-67Mbps are more common for nationally available packages.<\/p>\n

Which? said they were concerned that some broadband providers only offer slower than average connections for social tariffs, but this is hardly surprising as such packages are only intended to be basic fallback options for those who need help and are not designed to replace premium tiers. Broadband ISPs are commercial businesses, not charities, and still need to make a profit in what is an inherently low margins business.<\/p>\n

Rocio Concha, Which? Director of Policy and Advocacy, said: <\/strong><\/p>\n

“People who are struggling financially and trying to make savings during the cost of living crisis should not be made second-class citizens when it comes to broadband \u2013 which is vital for work, education and family life.<\/p>\n

Our research shows that lack of awareness and concerns about slow connections are major factors hampering take-up of social tariffs \u2013 so broadband providers need to do more to promote their social tariffs to low income customers and improve their range of options to ensure that these deals fit customers\u2019 needs.<\/p>\n

Providers must also make sure people do not have to pay Early Termination Charges (ETCs) to move to another firm\u2019s social tariff. During a cost of living crisis, people should not be left trapped in a deal which does not work for them due to high exit fees.”<\/p><\/blockquote>\n

ISPA<\/a> Chair, Steve Leighton, said:<\/strong><\/p>\n

“Broadband bills make up only a small percentage of household spending – but with the cost of living crisis deepening, the sector has responded responsibly and there is now a widespread availability of social tariffs across the UK from many different providers.<\/p>\n

The broadband market is very competitive and so there are a range of different social tariffs available, crucially they offer the kind of speeds that enable customers to use broadband for their everyday needs. Our members are actively talking to their customers and are committed to supporting those who are struggling with their finances, ensuring they are aware of everything on offer.<\/p>\n

We agree with the need for better consumer awareness of the availability of broadband social tariffs. We would expect to see take up increase as members continue to work closely with government on a series of joint commitments to improve awareness of social tariffs and as industry makes use of the government scheme to verify customers\u2019 eligibility.”<\/p><\/blockquote>\n

The survey also noted that 63% of eligible households surveyed said they were completely unaware social tariffs exist (similar to Ofcom<\/a>’s 70%), although happily 51% of this group did say they were likely to switch after hearing about them. As such, awareness remains the key barrier to adoption, much as it has done for the past two years (none of the findings in today’s survey are revelatory).<\/p>\n

On the issue of big ISPs that have yet to launch a social tariff, BT<\/a> noted that its ‘Home Essentials’ packages were available to customers of Plusnet<\/a> and EE<\/a> too – penalty free, but they also added that EE<\/a> would be launching a social tariff for mobile users called ‘Mobile Basics<\/em>‘ very soon.<\/p>\n

As for Shell Energy and TalkTalk<\/a>. Shell said they are “looking closely at<\/em>” the idea of launching one and they also waive early termination charges for customers switching to another provider\u2019s social tariff, but made no solid commitment to do their own. Meanwhile, TalkTalk<\/a> merely highlighted how it offers jobseekers 6 months of free broadband, which is not comparable to a Social Tariff. Ofcom has said they want both to launch a social tariff.<\/p>\n

However, there remains a strong feeling in the industry that the Government needs to do its part too, such as by potentially enabling ISPs to cut Value Added Tax (VAT) on social tariffs from 20% to 5%. But so far there’s been precious little movement on that front and, to be fair, the economy is currently in a pretty dire state. On the other hand, making broadband more accessible helps people to find jobs and save money etc., which tends to feed back into the economy.<\/p>\n","protected":false},"excerpt":{"rendered":"

A new survey of 2,009 UK people eligible for fixed broadband social tariffs by ISPs (i.e. cheaper packages for those on benefits), which was conducted by consumer magazine Which?, has revealed that 39% of those eligible and aware of such tariffs do not intend to signup due to concerns over slow speeds, existing contracts and […]<\/p>\n","protected":false},"author":1,"featured_media":25585,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[36,34],"class_list":["post-32885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-ofcom-regulation","tag-statistics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nSurvey Identifies Reasons for Slow Take-up of Broadband Social Tariffs - ISPreview UK<\/title>\n<meta name=\"description\" content=\"A new survey of 2,009 UK people eligible for fixed broadband social tariffs by ISPs (i.e. cheaper packages for those on benefits), which was conducted by\" \/>\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\/11\/survey-identifies-reasons-for-slow-take-up-of-broadband-social-tariffs.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Survey Identifies Reasons for Slow Take-up of Broadband Social Tariffs - 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