The UK’s largest mobile and broadband companies have agreed on a plan to help customers struggling to pay their bills amid the cost of living crisis, including moves to move to cheaper deals without paying a penalty.
The package was agreed at a summit on Downing Street, co-chaired by Culture Minister Nadine Doris and Business King David Butres, and attended by senior executives of the country’s largest telecoms companies, including BT, Virgin Media O2, Vodafone, Three, Sky and TalkTalk.
The companies, which introduced increases in household and internet bills for households earlier this year, have agreed on a five-point plan of formal commitments to support customers struggling with rising inflation, energy costs and tax increases.
Commitments that take effect immediately include allowing customers who struggle with bills to switch to cheaper packages at no charge or penalty. Early termination fees can rise to hundreds of pounds if multiple telecommunications services are canceled.
Other measures include allowing those struggling with the bills to move to manageable repayment and release plans and promoting more social tariffs in the industry.
While some companies such as BT have had social tariffs available to vulnerable customers for several years, others, such as Sky and Vodafone, have only recently made such packages available to customers.
“Families across the country are facing heightened concerns about keeping accounts,” said Doris, who wrote to telecoms chiefs in April, calling for better promotion of social tariffs. “The industry is listening and signing new commitments, offering customers struggling with the cost of living to stay connected.”
According to those present, the leaders suggested that the government could also help by reducing the VAT on telecommunications bills to 5%, as happened in other sectors of industry during the coronavirus pandemic.
Other industry-wide commitments include agreeing to treat those who struggle with accounts with “compassion and understanding” and to ensure that the most vulnerable are not cut off.
The government has previously said that while approximately five million households receiving benefits are eligible for discounted deals, less than 100,000 have accepted them.
“The telecommunications sector knows that people are facing real challenges with the cost of living crisis,” said Andrew Glover, chairman of the Association of Internet Service Providers. “Our members are determined to do what they can to help their clients during this period and we will work with the government to raise awareness of the support available.
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