Major mobile provider launches cheap tariff for people on Universal Credit and benefits – see if you qualify
VIRGIN Media O2 is launching a new mobile plan for people on low incomes.
The O2 Essential Plan is a social tariff, which is available for new and existing customers who receive a range of benefit payments.
It comes with 10GB of mobile data, plus unlimited calls and texts for £10 per month.
The plan can be taken as a 30-day rolling contract, has no activation or exit fees, and no price changes while customers receive benefit payments.
In comparison, when you look at other O2 rolling 30 day contracts the nearest would be a 5GB for £23 a month, followed by 1GB for £20 a month.
These are for rolling 30-day tariffs for people who want flexibility.
The Essential Plan is available for people who receive any of the following government support payments: Income-based Employment Support Allowance, Income-based Jobseekers Allowance, Income Support, Pension Credit, or Universal Credit.
Christian Hindennach, Chief Commercial Officer at Virgin Media O2, said the company was “proud” to offer the service for “people experiencing financial difficulties.”
He went on to say: “This includes our broadband plan for people receiving support payments, the National Databank providing free mobile data for people in need, and our Community Calling scheme which rehomes smartphones with people who need them.”
People can find out more about the Essential Plan, see if they are eligible and apply via here.
Additionally, Virgin Media O2 also founded the National Databank in partnership with digital inclusion charity, Good Things Foundation.
The National Databank is like a food bank but provides free O2 mobile data, texts and calls to people who need it.
Anyone in need can get 25GB of free O2 mobile data per month for up to 12 months through the National Databank’s network of thousands of National Databank Hubs nationwide – including O2 retail stores.
People can find their nearest National Databank Hub here.
Households struggling to keep up with costs can access a free sim card with unlimited calls and texts and 20GB of data.
The sim lasts six months but after that time has passed, recipients can apply for another one.
There is no set criteria to be eligible for one, but most will be on a low income or in need of financial support.
There are 1,200 National Databank hubs across the country where people can visit to sign up for a sim card.
You can find out more about the Databank, here.
What is a social tariff?
Social tariffs are cheaper broadband and phone packages for people claiming Universal Credit, Pension Credit and some other benefits.
Some providers refer to them as ‘essential’ or ‘basic’ broadband.
They’re delivered in the same way as normal packages, but at a lower price.
Amid rising living costs, Ofcom is encouraging companies to offer social tariffs to help customers on low incomes.
Plenty of households aren’t claiming the cheaper internet deals when they could be.
Recent research from comparison site Uswitch found roughly 10million homes are unaware of social tariffs – and they could save them up to £234 a year.
You could save even more too. The Sun previously spoke to one woman who cut costs by £300 a year.
Another saved £594 over 12 months by signing up to one of the tariffs.
If you or someone in your household claims Universal Credit, you could switch to any of the tariffs available, with current prices ranging from £10 to £23.
Most tariffs offer superfast broadband at speeds over 30 Mbit/s – fast enough for you to keep in touch with friends and family, stream HD films or shop online.
If you do have to pay any setup costs, these should only be small. Your provider should tell you before you sign up.
If your provider offers a social tariff, you can switch to it at any time, free of charge.
You won’t pay any more than what you agree at the start of the contract – and you won’t pay a fee to leave the tariff before the end of your contract.
Some providers offer cheaper broadband packages that are only available to customers on certain benefits.
BT and KCOM also provide cheaper voice-only landline tariffs to eligible households. Details of these are in the BT and KCOM links below.
List of providers that offer social tariffs
OFCOM's website has a comprehensive list of providers offering social tariffs...
- 4th Utility – £13.99 a month
- BT – from £15 to £23 a month depending on speed
- Community Fibre £12.50 a month
- Connect Fibre – £20 to £25 depending on speed
- Country Connect – £15 a month
- County Broadband – £15 a month
- EE – £12 a month
- Fibrus – £14.99 a month
- G.Network – £15 a month
- Grayshott – £19 a month
- Hey! Broadband – £16 per month
- Hyperoptic Fair – £15 a month
- KCOM – £20 a month – £14.99 a month
- Lightning Fibre – £15 a month
- Lothian Broadband – £19.99 a month
- NOW Broadband – £20 a month
- Quickline – £16.50 a month
- RunFibre – £20 a month
- Shell – £15 to £20 a month depending on speed
- Sky – £20 a month
- SMARTY – £12 a month
- Truespeed – £20 a month
- Virgin Media – £12.50 to £20 a month depending on speed
- Vodafone – £20 a month
- VOXI – £10 a month
- Wildanet – £20 a month
- WightFibre – £16.50 a month
- YouFibre – £15 a month
Am I eligible for a social tariff?
How you can apply for a social tariff varies depending on which supplier you sign up with.
Meanwhile, providers offer packages with different speeds, prices and not all are available across the UK.
Prices range from £10 to £23 a month.
The regulator, Ofcom, has a list on its website of all the social tariffs currently on offer.
It also worth comparing deals via comparison sites such as MoneySupermarket and GoCompare.
You will need to be on benefits to qualify for a social tariff, although each provider is free to set its own eligibility criteria.
Some benefits that qualify you for a social tariff include: Universal Credit, ESA and Jobseeker’s Allowance.
It’s not just broadband providers that offer social tariffs – you can get them for your mobile phone as well.
Again, you can check out a list of providers offering mobile phone tariffs via Ofcom’s website.
You can find more information on the website of each provider, including details on who’s eligible and how to sign up
Other perks of social tariffs are that you may not be charged and exit fee if you stick with the same supplier and switch to its social tariff.
But even if you’re getting a discount it’s still worth checking that you’re getting the best deal out there.
Often there’s no penalty for leaving a social tariff early, but make sure to check the terms and conditions carefully.