SA: Vodafone launches new cheap broadband social tariff

Vodafone has launched a new fixed broadband social tariff – its Essentials Broadband package is aimed at households who might be struggling to cover their bills.

This makes it the latest provider to start offering a discounted tariff for low-income customers. The new offering is also the cheapest social tariff on the market, costing just £12 per month.

What is Vodafone’s social tariff?

Vodafone Essentials Broadband is a special discounted deal for customers who receive certain benefits. To be eligible, the account holder needs to be claiming one of:

• Universal Credit
• Job Seekers Allowance
• Employment and Support Allowance
• Disability Allowance
• Personal Independence Payment

The new deal is the cheapest social tariff on the market – it costs just £12 per month for a 12 month contract. The next cheapest social tariff, from Virgin Media, costs £12.50 but is substantially slower.

Essentials Broadband has average speeds of 38Mbps, making it comparable to social tariffs offered by several other big providers like Sky – though average speeds of 100Mbps or more are offered by some smaller providers.

Essentials Broadband comes with a 12 month contract. Like several other major broadband firms, Vodafone puts up the prices of its deals every April in line with the consumer price index (CPI) published in January, plus an additional 3.9%. However, Essentials Broadband will be exempt from this – its price will stay the same for the full 12 months.

There are no set up fees for customers who sign up to the deal and if customers’ circumstances change, they’ll be able to change to a standard broadband plan at the end of their contract without having to pay any additional fee.
Providers need to make consumers aware of their social tariffs

Vodafone’s new social tariff sees it join the likes of BT, Hyperoptic, Now Broadband, Sky and Virgin Media in offering help to customers who might be struggling to cover their broadband bills.

However, simply offering a social tariff isn’t enough. Both Which? and Ofcom, the telecoms regulator, have called for all providers to do more to promote their social tariffs to those who are eligible.

Research we conducted earlier this year showed that customers who are eligible for a social tariff could save an average of £250 per year by switching from their current broadband deal to the cheapest social tariff.

But recent research published by Ofcom’s found that, while take up of social tariffs has more than doubled in the last six months, only 3% of eligible households have signed up. We’ve rounded up all of the social tariffs available on the market to make finding one easier for those who need it.

Meanwhile, several big broadband providers – including EE Broadband, Plusnet, Shell Energy Broadband and TalkTalk – still do not offer social tariffs to their customers.

Which? calls for more action from telecoms providers

Which? wants to see more done by telecoms providers to help their customers through the cost of living crisis and support those who may be struggling to afford their bills. We’re also calling on them to:

• Carefully consider what level of mid-contract price rise is justified in the coming year, given current inflationary pressures, and enable consumers to leave their contract without penalty when prices are increased mid-contract.
• Work to increase awareness of social or discounted tariffs, including clarifying how these differ from commercial tariffs.
• Ensure that customers moving to these social or discounted tariffs don’t incur additional charges when they are signing up, such as exit fees if they’re currently in contract.
• Consider providing a range of social tariff options to ensure eligible consumers can choose the right connection for their household’s need.

Rocio Concha, Which? Director of Policy and Advocacy, said:

‘This new broadband offer by Vodafone is a positive step for eligible customers as the provider states there won’t be any additional charges such as set up fees or exit fees although it’s not explicitly clear if current customers will be able to switch to this new tariff for free.

‘As part of its campaign for businesses in essential sectors, including broadband, food and energy, to do more to help customers struggling with the soaring cost of living, Which? is calling for all providers to widen access to offer a range of social tariff options to ensure eligible consumers can choose the right connection for their household’s needs and Vodafone should consider this as a next step.’