Home » Telecoms firms must help vulnerable customers, regulator Ofcom says
Technology

Telecoms firms must help vulnerable customers, regulator Ofcom says

Telecom and broadband providers need to do more to help their vulnerable customers, says regulator Ofcom.

Their research shows that around 1.1 million UK households struggle to pay phone and broadband bills, rising to around one in 10 in lower income households.

Ofcom wants to update its guidance for businesses to include not restricting services to those who need them most.

Its network and communications group director, Lindsey Fussell, said: “Telephone and broadband are vital to our lives.”

Several telephone and broadband companies have recently announced price increases significantly above the rate of inflation.

While many broadband providers offer discounted “social rates” for people on benefits, Ofcom has previously said it has seen “limited evidence” that they are actively promoted to eligible customers.

The deals generally don’t show up in broadband advertising or in searches on price-comparison websites, he said.

It also found that only 55,000 of the 4.2 million households receiving universal credit use discount rates, and 84% of people receiving benefits were unaware of social rate packages.

Now Ofcom has announced that it is consulting on proposals for better help for those struggling to pay, which will be included in an updated guide for businesses.

“Many household budgets are being severely squeezed. It is therefore crucial that people struggling to pay their bills get the support they need,” added Ms Fussell.

One of Ofcom’s key proposals is for firms to emphasize the support available to customers, in particular special discounted packages for financially vulnerable customers.

Recent research suggests that “millions of families could save an average of £144 each year on their broadband bill.”

He also said companies should make greater efforts to reach out to indebted customers to offer support, using a variety of means “such as letters, emails, phones and text messages, and rotate between them.”

Ernest Doku of price comparison site Uswitch.com said: “Broadband providers need to do more to help people in need. For those struggling to find work, internet access is vital and the threat of a disconnection can cause great stress.

“Social charges are not the only way broadband customers can save money. Seven million households in Britain are paying £162 a year more because they don’t realize they don’t have a contract, despite price increases that are coming,” he said. aggregate.

But Till Sommer, policy director at the Association of Internet Service Providers, told the BBC: “The broadband market is very competitive and while some providers raise their prices from time to time, many others keep them. stable.

“Despite ever-increasing levels of data usage, the market as a whole still offers very competitively low prices, and consumers struggling to pay their bills have access to a range of social tariffs from a variety of providers.” .

Source