Millions of people in receipt of Universal Credit will be able to apply for a new reduced BT package from next month, as part of a new pledge to support 4.6million struggling households.
The telecoms giant said its new BT Home Essentials deal is part of its universal service commitment and has been created in conjunction with the Department for Work and Pensions.
It applies to all those on Universal Credit and anyone on legacy benefits such as Employment Support Allowance and Pension's Credit.
The package offers average download speeds of 36 Mbps and 700 minutes of calls for £15 a month – saving customers £240 a year compared to its £27.99 Fibre Essential plan which applies for all other households.
It compares to Virgin Media's Essentials broadband plan, which launched during the pandemic for those struggling to keep up with their bills while working and teaching from home.
BT said the plan is an improved version of its primary social tariff, BT Basic, which launched in 2008 for zero-income households only.
Unlike Virgin Media's initiative, the latest deal includes both calls and internet access. Home Essentials includes average download speeds of 36 Mbps and 700 minutes of calls for £15 a month.
Alternatively, eligible customers can also opt for average speeds of 67 Mbps and unlimited calls for £20 per month.
Marc Allera, at BT, said, “Fast, reliable connectivity has never been as important as it is today, with millions of people relying upon our networks to get back on their feet after the pandemic.
“We want to help as many people as we can, which is why at the end of June we’ll be launching BT Home Essentials, increasing the eligibility of our social tariff to include all customers on Universal Credit.
"BT Home Essentials will be available at half the price of our standard fibre package, helping a potential four million households on low income save on bills and stay connected to vital online services.”
The package is only for eligible customers on Universal Credit and people receiving the Guarantee Credit element of Pension Credit, Jobseeker’s Allowance, Income Support, and Employment and Support Allowance.
BT also offers a £5.16 a month Basic package for the most vulnerable households. The plan includes a 10Mb average download speed but is limited to 15GB usage per month, equivalent to watching 2.5 hours of television online a week.
This comes with a call allowance of £1.50, plus free weekend calls to 0845 and 0870 numbers (lasting up to 60 minutes).
It's available to anyone on income support, jobseeker's allowance, pensions credit, employment and support allowance and universal credit - providing the household has zero earnings.
