The cost of getting online: Increasing awareness of broadband social tariffs

At Independent Age, we believe the choice to engage online shouldn’t be taken away due to cost. Policy Manager Alexandra Holmes explores how affordability contributes to digital exclusion in later life.

In today’s digital society, online access plays a crucial part in enabling people to fully engage with essential services, access information, and stay connected with friends and family. Especially since the COVID-19 pandemic when many services moved, and remained, online.

However, people aged 70 and over are among those more likely to be digitally excluded with 40% not using, or having access to, the internet.

There are a number of reasons why someone might be digitally excluded, including a lack of confidence or skills to navigate the online world, or concerns around cyber security. At Independent Age, we’re working to change this through our information and advice services, our Hi Digital partnership with Vodafone UK Foundation and grants schemes.

But an often forgotten problem is the cost of getting online in the first place.

In this blog, we’ll explore how affordability contributes to digital exclusion.

At Independent Age we believe that everyone in later life should be able to afford their household bills, and that access to broadband is more than just a nice-to-have — it’s an essential.

In addition to helping people stay socially connected and enabling access to digital services, being online also provides access to price comparison tools, cheaper deals and savings, all of which can make that extra difference in the context of soaring costs.

As a result of having to choose which costs to prioritise, many older people in financial hardship face being left without access to the internet (and its potential benefits), or are at risk of losing access to it as they struggle to cope with rising prices across the board.

Broadband affordability

While the rise in energy costs have been a focus of headlines in recent years, at Independent Age we’re also becoming increasingly concerned about the affordability of other bills, such as broadband, which are contributing to the squeeze people in later life are experiencing.

“We are managing [broadband costs], at the expense of buying fresh wholesome food” — Jim, 70s

In April, we commissioned YouGov polling which found that in England, 30% of those aged 65+ on a low income (people with under £15,000 a year in income) are currently having to cut back on internet, phone or television subscriptions by a ‘great deal’ or ‘a fair amount’. This rose to 36% in Scotland.

Concerningly, these challenges have pushed some in later life to consider cutting themselves off from these subscriptions which leaves them at greater risk of isolation from friends, family and services.

“Having my broadband is my only means of communication with the outside world via email, messages, phone etc. I cut back on food and cut down on other bills to be able to afford my internet provider” — a woman in her late 60s

Of those on a low income in both England and Scotland, 9% told us they cancelled their internet and phone services over the winter months to save money and help them manage the rising cost of living. We found that 4% in England and 6% in Scotland had already done this prior to the winter for the same reason. When long-term health conditions and disability are factored in, a number of these figures rise.

Being offline can have a considerable negative impact on someone’s life. It can lead to increased feelings of loneliness, isolation and worse health outcomes. It can limit access to digital health services and resources and mean someone actually ends up paying more for their essentials if they can’t shop around online.

Based on what we are hearing, this isn’t a problem we expect to fade away any time soon; 29% of older people on low incomes in England and 35% in Scotland told us in April that they are worried they will not be able to meet their broadband/internet bill, when thinking about their financial situation over the next six months.

“Of the three [energy, water, broadband] the only one I could cancel is broadband, but broadband is essential nowadays to control banking, utilities, contacts with all companies or institutions” — Colin

This runs the risk that even more older people facing financial hardship will be forced to make the difficult decision to cancel their broadband services in the future as they struggle to juggle their mounting costs. Despite the risk that this decision itself could further exacerbate their cost-of-living pressures.

Increasing awareness and uptake of broadband social tariffs

Social tariffs are lower-cost tariffs that are available to people on certain government benefits, such as Pension Credit. They are delivered in the same way as normal packages, just at a lower price. They exist across utilities (water and broadband), but when thinking about internet providers they are sometimes called ‘essential’ or ‘basic broadband’.

They’re generally cheaper than other tariffs, with an average cost of roughly £17 per month (compared to £34 for a typical comparable tariff). Being on one could save someone around £200 a year by switching.

Social tariffs are available from most broadband providers but take up is extremely low, with 5.1% of eligible households (using the number of households in receipt of Universal Credit as a proxy for eligibility) on one. Due to the measurement, the picture is currently very unclear when thinking specifically about older people on low income.

While an increasing number of broadband social tariffs are being offered, they’re still not available from all companies.

We believe that all broadband providers across the UK should offer tariffs designed to support those on low incomes.

Given the extent to which broadband social tariffs are under-claimed, much more needs to be done to ensure that those who are eligible are aware of the options available to them and are supported to access them.

Independent Age is calling on all broadband providers to proactively promote their social tariffs and target this activity at all eligible groups, including older people on low incomes who receive Pension Credit.

We believe the Government has a role to play in promoting social tariffs as part of the support available during the cost-of-living crisis.

The bigger picture

The available broadband social tariffs can help, but they’re not the complete solution.

Inconsistencies exist across the market with social tariffs often differing in terms of what they offer — such as in relation to speed, cost, and how straightforward they are to access. This means customers have to shop around to find the best deal.

While some older people have told us they would contact their provider if they were struggling to afford their broadband bills, we are hearing from others who would instead find a way to manage their existing tariff by cutting back on other essentials or going into debt.

Proactive promotion of available support using different communication methods, while also reaching out to existing customers to let them know about what they could be eligible for is part of the solution.

It’s important to consider longer-term plans to address the patchwork of support so that people don’t need to shop around for the best deals. We must also explore what more can be done to support those on the lowest incomes, for whom social tariffs may still be unaffordable.

Next steps

To tackle low uptake of broadband social tariffs, the Government and providers need to fully understand the reasons why it’s so low among certain groups and develop targeted solutions around how best to reach them.

At Independent Age we’re conducting research to better understand the experiences and views of older people facing financial hardship when it comes to broadband bills. Over the coming months, we’ll be working to engage businesses, regulators and others in the charity sector to find practical solutions to help older people manage these costs.

If you have experienced problems affording broadband costs since reaching your State Pension age and want to share your story, please contact: campaigns@independentage.org

Find out more about ways to boost your income and cut costs through advice on our website. You can always contact our free Helpline on 0800 319 6789.

Hi Digital is a platform from Independent Age in partnership with Vodafone UK Foundation which aims to help older people develop their digital skills and gain confidence online so that they can stay connected, independent and save money. Find out more.