Ofcom has said it welcomes the decision by Virgin Media O2 to reduce the cost of its social broadband tariff.
The regulator’s recent Affordability Report showed 8 million UK households are having difficulty affording communications services. This number has increased over the past year, with people receiving benefits amongst those most likely to struggle to pay.
The price of basic Essential Broadband, which is specifically targeted at those receiving Universal Credit, with speeds of 15Mbps will be reduced by 16% to £12.50 per month for all new and existing customers, making it one of the cheapest packages in the market. A new, faster tier called Essential Broadband Plus will also launch next month and will deliver speeds of 50Mbps for just £20 per month. All Essential Broadband products come with no fixed-term contract and no activation fees.
“We’re taking steps to increase awareness of our social broadband plans, while making it easier to sign up, and are calling on the Government to cut VAT on social tariffs which we will directly pass on, helping those struggling most to save even more,” said Jeff Dodds, Chief Operating Officer, Virgin Media.
Virgin is also giving Essential Broadband Plus customers the option to add Virgin Media O2’s latest entertainment product, called Stream, for an upfront, one-off fee of just £20 – a 42% saving on the normal £35 charge
In August, after the Government launched a new tool designed to make it easier for customers to confirm their eligibility for social broadband tariffs, Virgin Media O2 confirmed it was the first provider working to implement the automated checks with integration expected in the coming months.
Last week, Virgin announced its employees were being given payments of £1,400 to support them with rising costs.
