Save on mobile and broadband
On a limited income? New social tariffs could mean you pay less, says Paul Lewis.
It seemed like good news when mobile phone and broadband providers were banned from setting fixed-term contracts that included an inflation-linked annual price rise. Typically, they raised the monthly costs each April in line with inflation plus another 3.9%. That meant you could not be sure what your costs would be in the future. But since this was ended in January providers have switched to raising prices each April by a fixed amount – typically between £2 and £3.50 a month. And in many cases the rise is more than the previous percentage rise would have been!
The telecoms companies say they need the extra money to invest in improving their networks – rolling out fibre connections and building more transmission masts. So with the prospect of rising prices, now is the time to check your broadband to see if you could pay less.
More than four million people could slash their broadband or mobile costs by applying for what’s called a social tariff. These offer a significantly lower price for people on limited incomes. That’s usually defined as receiving a means-tested benefit such as universal credit or pension credit, though some providers may include disability benefits such as personal independence payment (PIP) or attendance allowance. Social tariffs vary in what they offer and how much they cost: the regulator Ofcom says they range from £10 to £24 a month, but unlike standard tariffs they do not have a built-in annual price rise. They should be free to set up or switch to, and there will be no charge if you later decide to switch to another provider or leave the social tariff.
Before moving to a social tariff, make sure it offers the speed and data download limit you need. Find out more by logging on to your provider and searching “social tariff ”, or find a list of alternatives on the regulator’s website: search ofcom.org.uk for “social tariff”.
Calculate how much equity you could release
If you cannot get a social tariff you may be able to save money by switching to a cheaper deal. The consumer organisation Which? has a free service at broadband.which.co.uk to check what is available in your area. If you find one that is suitable you can switch through its website (but check first for any penalty charges for leaving your current provider early).