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Three launches mobile tariff for deprived families with unlimited texts, calls and data for just £12 a month: how to save money on your phone bill
- Households in arrears now have a reduced social rate for mobile telephones again
- Customers must have certain government benefits to be eligible for social rates
- Sim-only deals can be cheaper but may have less generous allowances
Pensioners and benefit recipients now have more choice of cheap mobile phone deals with a new ‘social rate’ from Three.
Social tariffs are little-known cheap mobile deals that exist, as industry regulator Ofcom has been requiring providers to offer low-cost options to the most difficult customers since 2020.
However, providers are not required to provide or promote social rates. Ofcom thinks more than 90 per cent of eligible homes do not have one, despite many standard mobile phone rates set to rise by up to 15 per cent from April.
The new Three deal gives unlimited calls, texts and data for £12 a month, provided customers get benefits such as pension credit and universal credit.
Cost of communications: Many mobile phone deals go up in price from April as providers pass inflation-related increases to consumers’ bills
Cheaper deals are available on Sim-only contracts with other carriers, but many of these come with less generous calling, text and data entitlements – with some of the cheapest offering just 1GB of data or no text entitlements at all.
The new social fare will launch through a sub-brand of Three called Smarty.
All social rates are ongoing one-month deals, which means they can be changed or canceled more easily than standard mobile phone contracts that normally run for a year or more.
To apply for the deal, customers must claim the following:
- Income-related allowance for employment support
- Income-based benefit for job seekers
- Income support
- Pension credit
- Universal credit
Three chief commercial officer Elaine Carey said, “More than ever, people need support and that should include access to affordable connectivity without restrictions.”
Eligible customers can Add here.
What other mobile social rates are there?
There are relatively few mobile social tariffs because many providers already offer cheap Sim-only deals that are accessible to everyone. We round up some of the best below.
However, there are two other social rates to consider.
Voxi For Now rate
This gives unlimited minutes and unlimited 5G data for £10 a month. Clients must have Job Seeker’s Benefit, Universal Credit, Work and Support Benefit, Disability Benefit, or Personal Independence Benefit.
EE base
This offers unlimited minutes with 5GB of data for £12 per month. Customers must claim Universal Credit, the Guarantee Credit element of Pension Credit, Employment and Support Allowance, Jobseeker’s Allowance, or Income Support to qualify.
What about cheap Sim-only deals?
If you already have a mobile phone, a cheap Sim Only deal is the cheapest way to call, text and surf the web.
However, some offers have less generous call, text and data rates than the social rates.
Users must ensure that they do not exceed the limits stated when signing up. If this is the case, there may be additional charges – and they can be expensive.
Here are the five cheapest deals on the market right now.
Lycamobile savings plan
For £1 a month, users get 1,000 minutes and 6GB of data, but no texts.
Lebara 3GB
This SIM-only deal costs £4.50 a month and gives 1,000 minutes, 1,000 texts and 3GB of data. It takes 12 months.
Talkmobile 3GB data
This deal offers 99,999 minutes, unlimited texts and 3GB of data for £4.95 per month.
Asda mobile 3 GB data
This SIM-only deal gives users 3GB of data, unlimited minutes and unlimited texts for £5 a month.
Talk mobile 1GB data
This Talkmobile option has 1GB of data and unlimited calls and texts for £5 a month.