Millions of people struggling to pay their water, broadband and phone bills are missing out on discounted deals simply because they do not know the help exists. A major report has suggested that most people who have fallen behind on paying their bills are unaware that social tariffs – sometimes called essential or basic tariffs – are available from suppliers.
These tariffs are not price promotions designed to attract customers, but lower bills for the same service for those who would otherwise struggle to pay. They apply to people on benefits such as universal credit or pension credit, and vary between suppliers. The lower cost of the tariffs is often covered by higher bills for everyone else.
“Most people behind on bills unaware social tariffs exist for water, broadband and phone discounts.”
Getting a social tariff requires getting in touch with a supplier and providing some evidence, such as details of the benefits received. But that does not take very long. For broadband and phone contracts, regulator Ofcom has a list of social tariffs provided by suppliers. If a customer’s supplier is on that list and they are eligible, they can switch free of charge and leave the contract without cost.
For water bills, every supplier in England and Wales has a social tariff, but who is eligible and the level of support varies. The consumer group for water customers has a list. Scottish Water does not offer a social tariff, though other options exist. In Northern Ireland, people are helped through the Community Care Register.
Social tariffs are not available on household gas and electricity bills, despite pressure from some, including regulator Ofgem, for their introduction. Instead, suppliers offer a host of support schemes for those struggling to pay, but the trade body Energy UK stresses that companies can often only help if customers get in touch to say they are unable to pay.
Free debt charities such as Citizens Advice are experienced in helping people and can provide independent advice. However, people should be alert about scams – some criminals try to exploit the situation by sending official-looking messages and emails. Never reply to unsolicited contact.