Original article ISPreview UK:Read More
The Digital Poverty Alliance (DPA) has published a new briefing that warns how Social Tariffs from UK broadband and mobile providers, which offer significant cost savings to those on state benefits (e.g. Pension Credit, Universal Credit etc.), continue to suffer from three “critical flaws” – minimal awareness, inconsistent quality and affordability.
According to Ofcom’s most recent December 2024 report (here), the take-up of cheaper Social Tariffs (telecoms) for those on state benefits jumped to 506,000 customers in June 2024 (up from 380,000 in Sept 2023). But that’s still just 9.6% of eligible households – the number of households claiming Universal Credit also increased to 5.3 million during this period (up from 4.6m at the last report).
In the past, very few people even knew Social Tariffs existed, which tended to only be offered by a couple of providers, such as BT and KCOM. But the last government, partly in response to the cost-of-living crisis, worked closely with Ofcom to change that and thus fostered a huge rise in both the availability, promotion, capabilities and awareness of such packages.
However, Ofcom’s data from January 2025 indicated that 5.3 million households – around 23% – were still struggling to pay for their communications services and take-up of Social Tariffs remains low (although we don’t yet know how much this has changed through 2025). The DPA’s new briefing thus identifies three “critical flaws” in such tariffs. Firstly, awareness is still said to be “minimal“, with tariffs “poorly promoted and often accessible only through online applications that lock out those already excluded“.
Secondly, quality is said to be inconsistent. For example, while some providers offer unlimited broadband, others “impose strict limits or cap speeds” at around 30Mbps – “far below what families need for work, education, or healthcare“. But we think that statement is a little unfair, since social tariffs are only supposed to be a basic entry-level option and 30Mbps is usually enough for most tasks, albeit clearly not a premium experience.
Finally, affordability is also said to still be an “obstacle” because, even at a reduced rate, tariffs can still be “out of reach for households already unable to cover essential bills“. The difficultly here is that commercial ISPs are not charities and it’s already hard enough for anybody to make a profit in today’s competitive market. But it’s similarly unrealistic to expect broadband ISPs to sell products at below cost price.
Elizabeth Anderson, CEO of the Digital Poverty Alliance, said:
“Affordable, reliable broadband must be treated as a basic utility, not a luxury. Social tariffs can reduce digital poverty, but only if they are promoted properly, standardised across providers, and accessible to every household that needs them.”
The idea of “standardising” social tariffs would be extremely difficult for a market with so many different underlying broadband networks and technologies – where coverage and performance aren’t always the same from one location to another (telecoms is more complex than gas, water or electricity). For example, you can’t very well offer 30Mbps, 50Mbps or 100Mbps in an area where only slower speeds are technically possible (e.g. ADSL-only areas or those on longer FTTC lines).
Equally, many providers are currently operating under significant financial strain due to the rising cost of network builds, energy and high interest rates etc. Suffice to say that what’s viable for one is not going to be viable for another, which is why a one-size-fits-all approach isn’t currently workable.
However, the DPA does recognise that social tariffs are “not a cure-all“, but it also warns that without reform they will continue to fall short. “Connectivity must be recognised as a public good – central to full participation in society,” said the DPA. In order to deliver on this they make several familiar recommendations, such as removing VAT from social tariffs (this often comes up, but no government has ever done it) and various other things.
DPA Recommendations for Social Tariffs
• Central government should remove VAT from social tariffs, lowering costs further and reinforcing the principle that digital connectivity is a basic utility.
• Government and industry should collaborate to establish a co-funded, standardised, industry-wide social tariff, ensuring that offers are consistent, reliable, and accessible regardless of provider or geography.
• Awareness campaigns should be delivered across mixed media, combining trusted national organisations with local channels. Messaging must be simple, transparent, and free of jargon, with offline options for application to ensure that those already excluded are not left behind.
• All government correspondence with benefit recipients – including letters about Universal Credit or welfare entitlements – should include clear information on social tariffs and how to access them.
• Providers should guarantee sufficient speeds and reliability on social tariffs, ensuring they meet the needs of households relying on digital access for education, healthcare, and employment. Substandard or restricted services risk reinforcing exclusion rather than addressing it.
Finally, a quick reminder. We know social tariffs can be a divisive topic for some, but that is not an excuse to abuse the comment system in order to post offensive remarks toward those who take state benefits. Such posts are against our rules and will be removed.