Millions of people should pay less for broadband, says watchdog

Millions of people on benefits are missing out on cheaper broadband tariffs because firms are failing to promote them properly, the media watchdog Ofcom has said.

Only around 3.5% of those eligible for the deals are currently on one.

Social tariffs are low-cost broadband deals offered to customers on benefits and cost about £15 a month.

The average customer could save £140 a year by switching to one of these deals, consumer group Which? says.

Broadband providers are not obliged to offer social tariffs, but have been encouraged to by the government and Ofcom.

Around four million UK households could be getting cheaper broadband, but only around 150,000 people are currently on one, according to Ofcom.

All of those in receipt of Universal Credit are eligible, although some providers extend eligibility to those in receipt of other benefits, such as Pension Credit, Employment and Support Allowance, Jobseeker's Allowance and Income Support.

Anne switched to a social tariff as soon as she realised they were available, she told the BBC's consumer programme Rip Off Britain: Live.

The 82-year-old, who has cerebral palsy, runs her own charity from home. She saved £120 a year by switching away from her original TalkTalk deal.

"I think social tariffs are not spoken about enough because providers don't want too many people on them - because they won't be making as much money," she told the BBC.

Currently, social tariffs are offered by companies including BT, Virgin, KCOM, Hyperoptic, G Network, NOW, Sky and Community Fibre, with prices ranging between £10 and £25 a month.

However, Rip Off Britain: Live found that of the four major companies who offer social tariffs, only one showed the information on its home page.

A BT Consumer spokesperson said: "We're dedicated to keeping our customers connected and committed to supporting all our customers across the UK who are on low-incomes or facing financial hardship... and urge anyone who qualifies for our at-cost, social tariff to get in touch."

BT collaborates with debt charities such as StepChange, which offer customers free help and advice to manage bills and debt. It has also signed up to the government's Breathing Space scheme, which allows customers three months of respite from paying debts when financially vulnerable.

TalkTalk said in a statement that while it did not offer social tariffs, it had a partnership with the Department for Work and Pensions offering six months of free internet for job seekers.

For those who are aware, switching to the social tariff can save considerable amounts of money, although sometimes the speed is slower.

Switching to a social tariff can also occasionally incur an exit fee from the current supplier, although many firms waive the fee.

You can watch Rip Off Britain: Live on BBC One at 9.15am