Little-known schemes could help you save over £300 a year on household bills

08/05/2024

If you are eligible for a social tariff you could save hundreds on your household bills a year

Millions of households could be getting huge discounts on their household bills – but many are missing out.

Social tariffs are special discounted deals available for certain low-income customers. According to recent estimates by Policy in Practice, social tariffs worth £900million for water are going unclaimed. That’s equivalent to an average of £160 a year for the nearly six million households who are eligible.

At the same time, around £700million worth of broadband social tariffs are going unclaimed too. This means the 5.3million households which are eligible for them are missing out on a saving of around £144 a year. This marks a combined saving of just over £300. Here we explain what social tariffs are and how you can get them.

Water social tariffs

Social tariffs reduce the water bill if you are claiming certain benefits or classed as being on a low income. Each water supplier has different criteria for their social tariff so eligible for help and the level of support varies depending on your water company.

Customers of Thames Water, England’s largest water company, may be able to get a 50% discount if their bill is more than 5% of their net income. Those who get their water from Severn Trent can get 70% off if their household income is £20,048 or less. Yorkshire Water offers a social tariff to households with an income below £19,000 and a water bill of more than £364 a year. Portsmouth Water’s social tariff will cap the water bill at £91.12 for households with incomes below £21,000.

You can find out what your water supplier offers with their social tariff alongside the criteria on their website here and you can apply by contacting your water company directly. Usually, you will need to provide evidence such as household income, debts, and other regular outgoings for your application. It will then assess your circumstances by asking about your income and situation.

Broadband social tariffs

There are broadband social tariffs, as well as phone social tariffs. These packages are delivered in the same way as a normal broadband or phone deal. The only difference is they are significantly cheaper. Providers often brand them as “essential” or “basic”. You will be, eligible to get a broadband social tariff if you claim Universal Credit, Pension Credit, Employment and Support Allowance (ESA), Jobseeker’s Allowance (JSA) and Income Support.

Some providers also offer cheaper tariffs for people claiming disability benefits such as personal independent payments (PIP) or Attendance Allowance. The person receiving the benefit needs to be the main person on the contract. Prices for social tariffs currently range from £10 to £23 a month, with tariffs offering broadband speeds from 15Mbps to 100Mbps.

Vodafone, Virgin Media, Sky, Now TV and BT are some providers offering social tariffs. It’s also worth noting that BT, EE and Plusnet broadband customers can all switch to BT social tariffs. Like with normal broadband deals, you should do your research before signing up so make sure you are getting the best value for money and the broadband speed you need. The providers listed below are taken from the latest guidance on social tariff broadband packages from Ofcom. Here is a full list of the social tariffs offered by providers in the UK as of writing:

4th Utility Social Tariff – £13.99 a month (30mbps)

BT Home Essentials No Income – £15 (36Mbps)

BT Home Essentials Unlimited – £20 (36Mbps)

BT Home Essentials unlimited- £23 (67Mbps)

Community Fibre Essential – £12.50 (35Mbps)

Connect Fibre Basic Essentials – £20 (50Mbps)

Connect Fibre Essentials – £25 (150Mbps)

Country Connect Social Tariff – £15 (50Mbps)

County Broadband Essential Broadband Tariff – £15 (15Mbps)

EE Basics – £12 (25 Mbps)

Fibrus Full Fibre Essential – £14.99 (50Mbps)

G.Network Essential Fibre- £15 (50Mbps)