More than 56,000 people have signed a new petition on Change.org calling for Ofcom to ‘Ban the Loyalty Tax’ on broadband contracts for existing customers and end the ‘contract-end price hikes’. Petition creator Richard Winstone is urging the telecommunications regulator to implement stricter rules on broadband providers who overcharge existing customers.
The campaigner wants to see a policy put in place similar to Ofgem rules in the energy sector which ensure that all offers are accessible to new and existing customers. The petition also calls for capping any price increases at the end of contracts to a maximum of 30 per cent of the current contract price.
Mr Winstone launched the petition earlier this month after noticing his pensioner father was being charged nearly triple the costs of a new customer on the same bundle package for TV, phone and broadband. He explained: “My Dad was paying £75 per month with Virgin and they had emailed him to say it was going up to £98 per month from November 2024.
“I couldn’t believe how expensive it was. I checked online to see how much a new customer would pay for the same bundle – Virgin’s Big Bundle would cost a brand new customer only £33 per month.”
He continued: “I’m calling on Ofcom to change this. Telecommunication companies are offering insanely cheap deals to new customers by ripping off their loyal customers.”
Mr Winstone is calling on Ofcom to implement rules so that:
- every offer is available to every customer, the same as it is in the energy sector, and
- The end-of-contract price increase for all customers is limited to a maximum of 30% of their current contract price.
You can follow the progress of the petition on Change.org here.
In a separate move, the charity Independent Age is calling on internet providers to do a better job of promoting their broadband social tariffs so that more older people struggling to manage their finances are aware they could be paying as little as £12.50 per month for their broadband services on Virgin Media Essentials. However, it’s not the only option as there are currently over 30 broadband social tariffs to choose from across the UK.
The easiest way to find out if you qualify for a cheaper broadband package is to contact your provider directly. If you are currently claiming benefits such as Universal Credit, Pension Credit, Personal Independence Payment (PIP), Disability Living Allowance (DLA) or Income Support, check the guide at the bottom of this article to see which providers include those benefits as part of their eligibility criteria.
Recent research from the dedicated older person’s charity suggests that nearly half of State Pensioners (48%) on a low income have struggled to keep up with their broadband bill in the last six months.
It said the findings raise fears that the cost of living crisis has deepened the ‘digital divide’ and warns that older people in financial hardship may become even more isolated. The charity said that not being able to go online could mean that older people on low incomes are unable to access information about financial entitlements or services, miss out on savings by not being able to search for the best deals and lose vital social connections.
Take-up of broadband social tariffs is low, with just 5.1 per cent of eligible households using them, suggesting that an estimated 4 million are missing out
Fran McSweeney, Head of National Services at Independent Age said: “Social tariffs can be a lifeline to help older people who are struggling financially stay connected. The internet can help people in later life stay in touch with friends and family and to access information on financial entitlements, deals and services but it has to be affordable. If you receive a means-tested benefit, it’s vital that you find out if you’re eligible for a social tariff.
“You can find out whether you’re eligible and for a list of what providers are offering through the Ofcom website. These start at £12 per month and are designed with customers who need extra support in mind. Contact your current supplier for more information.”
Independent Age is urging older people who are cutting back on necessities to afford broadband, to check for unclaimed benefits to boost their income. This can be done online at independentage.org or by calling them on 0800 319 6789 for a free and confidential welfare benefits check to see if you’re entitled to support you’re not currently receiving.
The full list of social tariffs for broadband and mobile phones can be found on the Ofcom website here.