At a recent Lords Digital Committee digital exclusion hearing, experts told peers that broadband should be made more accessible to people on benefits. These experts also told peers that cutting VAT on broadband would help people struggling with ‘digital exclusion’.
Rocio Concha, of the consumer group Which?, urged action to get more people to benefits with cheaper social tariffs. It echoes comments recently made by the government, which told companies they must disclose these deals.
According to another expert, Helen Milner, chief executive of the charity The Good Things Foundation, “more than one in 20 households do not have internet, either fixed line or mobile.”
This news comes at a time when many of the UK’s most popular internet service providers are set to raise their prices, making them even more unaffordable for people already struggling with the ongoing cost crisis. livelihood. If your bills are set to go up this spring and you’re out of contract, head over to our best broadband deals page now and lock in a better rate before the increases kick in.
‘Digital exclusion’ under discussion
According to Baroness Stowell, who chairs the Lords Digital Committee, the current high cost of living is pushing some people into ‘digital exclusion’.
Experts told the committee that digital exclusion is a term that describes an interconnected set of internet problems, including:
- No access to it
- No device can connect to it
- Lack of skill or confidence in its use
According to evidence provided by Rowlando Morgan of The Center for Economics and Business Research, ending digital exclusion for key groups could generate £13.7bn in economic benefits over 10 years at a cost of £1.4bn .
Broadband should be seen as an ‘essential utility’
Cheaper social tariffs are currently available for benefit claimants, but estimates suggest that only 3.2% of those who qualify for social tariffs actually use them.
Ms Concha told peers that “access to the internet is an essential utility in today’s world, as important as access to water, gas and electricity.” As a result, he argued that social contracts in particular should be excluded from VAT for domestic users. It is a move that is also supported by industry groups.
In addition to this, the committee was also told that consumers who are not on social tariffs face a high inflation price increase of up to 17% this spring. As a result, the committee was informed that people who are financially vulnerable should be able to transfer the contract without financial penalty, and should not be forced to pay these increases.
How can I save money on my broadband?
If your bills are due to increase by 17% this spring, then now is the time to act. If you are out of contract, then you can probably find a better (and cheaper) deal on the internet. If this is the case, head over to our top broadband deals page today or use our widget to see exactly what’s available in your area.
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