Universal Credit claimants could see their broadband bills cut under a new government scheme aimed at increasing the number of people making use of 'social tariffs'.
The government has called on all broadband providers to offer and promote social tariffs, which give struggling families on certain benefits discounted broadband and mobile deals. According to the government, customers on social tariffs could in some cases save over a hundred pounds a year.
The latest figures show that while many providers already offer the tariffs, the take-up rate is low with just 1.2 per cent of eligible households applying.
Under the current system, claimants have to prove their entitlement as often as every month through methods such as sending screenshots of their Universal Credit account to their broadband provider or by providing a letter from the Jobcentre. But now, the Department for Work and Pensions (DWP) is launching a new service which will allow internet service providers to verify, with the customer's permission, if they are receiving any relevant benefit which would make them eligible for extra support.
Virgin Media O2 has said it will support the scheme following discussions with the government, announcing over the weekend that it will use the system to verify eligible customers who sign up for their Essential Broadband Tariff. The company also intends to waive early termination fees for customers who want to move from their existing tariffs.
Cost of Living Business Tsar, David Buttress, said: " Times are tough and families across the country are feeling the pinch, so we’re making it easier for companies to reduce phone and broadband bills for struggling families. Some of the biggest network operators have already committed to take advantage of this new scheme and we want to see other providers follow their lead so that everyone eligible for a social tariff can access one.
“This is just one of the ways that we’re working with businesses to offer help through our Help for Households campaign, building on the comprehensive £37 billion package of support already being provided by the government”.
The new system will simplify the process of verification by removing the need for customers to prove they are entitled to the discount. Secretary of State for Work and Pensions Thérèse Coffey, said: “It’s more important than ever that people get the financial support available to them, including cheaper broadband for benefit claimants, and this change makes these social tariffs even easier to access. I’d like to thank those providers leading the way in moving customers over to discount rates, and I encourage others to follow suit to help millions of households to cut bills.”
Digital Secretary Nadine Dorries, said: "Social tariffs are vital for families struggling with bills, keeping them connected even in tough times. Our discussion with broadband companies led to the range of social tariffs on the market today and we've secured a raft of new cost-of-living commitments from them to ensure help is available for anyone that needs it.
"I urge anyone concerned about falling behind on payments to contact their supplier to see what support is available."
The new DWP system is set to launch next week on Monday, August 22. Universal Credit claimants are urged to visit Ofcom’s website to see which social tariffs for different providers may be available to them.
As well as Universal Credit, the new system will also be able to verify eligibility for people on Pension Credit, Income Support, Income-Based Jobseeker’s Allowance and Income-Related Employment Support Allowance.
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