Vodafone unveils £12 broadband deal for low-income households

Thousands of Vodafone customers could cut their broadband bills by £120 a year if the company unveils a new social tariff.

Broadband companies have expanded their support for struggling families by introducing so-called social tariffs, which are available to those receiving certain benefits as the cost of living continues to rise.

Vodafone’s Essentials Broadband costs £12 per month. Customers can participate with no start-up or exit fees and there will be no surprise price changes within the contract.

Customers have access to Vodafone’s Fiber 1 or Full Fiber 1 deal for 12 months, with an average download speed of 38 Mbps. Customers can save around £120 a year compared to Vodafone’s cheapest broadband deal.

The deal will be available to those on jobseeker benefits and universal credit, as well as those on employment and support benefits, disability benefits, and personal independence benefits.

Even if you already have a social rate, it pays to shop around if you don’t have a contract, because all providers price them differently. For example, the Vodafone deal is £3 a month cheaper than BT’s Home Essential package.

Catherine Hiley, broadband expert at comparison site Uswitch.com, said: ‘Access to reliable broadband is a household necessity, and this new Vodafone social tariff is a welcome addition to the range of deals available to help those in need.

“Financially vulnerable people now have several options when it comes to social broadband rates. Notably, this deal is £3 less per month than the BT Home Essential package.

Proven social rates are a lifeline for lower-income customers, but many still don’t know they’re available. These rates are often hard to find on the provider’s own website and more needs to be done to reach those who need them most.

‘If you don’t qualify for a social rate, but are still struggling to pay for your broadband, look for the best deals. There are a number of discounted deals, such as Hyperoptic’s 30 Mbps Fiber Broadband for £15 per month or Vodafone’s Superfast 1, with 38 Mbps for £20 per month.’

Customers can compare the best broadband deals and find the right one for them using This is Money’s comparison service and Decision Tech.

Paying millions too much for broadband

Earlier this year, Ofcom revealed that only 1.2 percent of the 4 million households eligible for social rates have applied for the broadband discount, meaning they are paying far more for their internet than they need to.

According to the regulator, more than 1 million households are struggling to pay for their broadband at home.

“The rising cost of living puts one million families at risk of ending up on the wrong side of the digital divide. We must not let this happen,” said Ahmed Essam, CEO of Vodafone UK.

Research by YouGov commissioned by Vodafone shows that families not connected to the internet are losing £286 a month – and £3,432 a year – because they don’t have access to the best prices and deals when making purchases.

Vodafone will also offer small business owners free broadband for a year to help with rising costs, as research shows that more than a third of small businesses have cut or canceled their broadband to cut costs.

Find the fastest and cheapest broadband – and see if you can save

Broadband, TV and phone contracts are notoriously sticky, with customers often letting deals run for many years while carriers raise prices.

But it may be possible for you to get faster broadband, a better TV package and an improved phone deal while saving money every month.

It’s always worth comparing prices to see if you can save, especially as the cost of living is high.

This is Money has partnered with Broadband Choices to give readers the opportunity to easily search for the best and cheapest deals on their broadband, mobile and TV.

> Can you save? Compare broadband, TV and phone deals