Ofcom has once again criticized UK operators for keeping their customers in the dark, this time over the availability of so-called social broadband tariffs. The regulator's latest figures suggest the take-up rate has been only 5.1% of those eligible, or 220,000 households, with 53% of people receiving benefits unaware of the existence of reduced rates.

Social tariffs are offered by 20 UK broadband providers on a voluntary basis, as Ofcom cannot mandate them without being directed by the government. They offer reduced rates – as low as £12 (US$15) per month – to customers on a range of benefits, with households saving £202 ($252) annually on average, according to the regulator. Lack of awareness has, however, hampered uptake.

Ofcom says it has asked providers "to review their social tariff webpages as a matter of urgency, to ensure the information is accurate, clear and understandable for consumers, and highlights all the protections offered by social tariffs."

Figure 1: (Source: Panther Media GmbH/Alamy Stock Photo)

It has also approached TalkTalk, which does not offer a social tariff at the moment, to do so. O2 has, meanwhile, been asked to join Voxi (offered by Vodafone), EE and SMARTY (owned by Three) in offering a social tariff for mobile broadband.

Most customers have found out about social deals through social media (26%) and television (21%). Crucially, only 9% of respondents found out from their operators, with Ofcom concluding information was often "difficult to locate." The regulator suggests providers should take steps to improve awareness.

It suggests targeting customer groups that are more likely to struggle with broadband bills, including households with younger individuals and those in part-time work. Ofcom's data suggests that the number of people who have faced "communications affordability issues" has increased in recent years. It stood at 29% as of January 2023, up from 22% in February 2022. Among those eligible for social tariffs, it rose from 30% to 43% over the same period.

Out of sight…

When Light Reading scoured the websites of the largest broadband providers, mentions of social broadband deals were indeed scarce. BT's breakdown of available deals includes only an obscure reference and link to BT Home Essentials in the BT Broadband section of the Important information drop-down menu. Curiously, this section is missing any indication that this is the name of the company's social tariff, let alone that it offers lower rates to eligible customers.

BT has the largest market share of all UK broadband providers at 25%, according to Statista. Some back-of-the envelope math suggests what is at stake for the operator. If 220,000 corresponds to 5.1% of eligible households, then the total number of those eligible comes to more than 4,000,000. Assuming households receiving benefits are spread equally across providers, and that the average saving is £202 a year, the difference in income is a substantial £218 million ($272 million) for BT.

Sky, the second-largest provider with a 22% market share, offers social tariffs only to existing customers, although its Now subsidiary makes them available to new customers. You would be hard pressed to find out about them from Now's website, though. As far as Light Reading can establish, the information is theoretically lurking in the Help Centre portion of the website, but we had to ask Google for directions to find it.

…Out of mind?

An aspiring Virgin Media O2 customer would have an easier time, with a link to tariffs for low-income families visible when selecting a deal – assuming they scroll down far enough.

Browsing Vodafone's broadband deals, meanwhile, didn't bring up any mentions of a social tariff. To find that option, an eligible potential customer would presumably need to search the website, meaning they would need to be aware of the option in the first place.

It is not all bad news, though. Ofcom's data shows awareness has improved considerably since last year, with 47% of eligible customers knowing about social tariffs as of February, compared to only 16% in January 2022. Take-up is also up, with only 1.2% of eligible customers signed up last year, but the 5.1% figure is still very low.

Ofcom has also noted providers are not planning to increase the social rates, which are already exempt from mid-contract price rises.

This is not the first time Ofcom has lambasted telcos this year – or, in fact, this month. Earlier in April, Ofcom highlighted how telcos have been dragging their heels on simpler broadband switching. Last month, it also criticized telcos for using language that can mislead customers into thinking they are being offered – or provided with – fiber-to-the-premises (FTTP) when that is not the case.

The regulator has also been reviewing mid-contract price rises dictated by the inflation-plus-3.9% formula, which can increase some customers' bills by as much as 14%.

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— Tereza Krásová, Associate Editor, Light Reading