Cheap broadband deals: Sky launches new cut-price social tariff

Telecoms giant Sky has launched a Broadband Basics package to its existing customers in a bid to help households stay connected if they are struggling with bills.

‘Social tariffs’ offers average discounts of around 50 per cent for more than 4million eligible households, which could be a much needed relief for those struggling with soaring bills 

With cost of living concerns on the rise, watchdog Ofcom has called on telecoms giants to offer more social broadband tariffs and make customers more aware of their options.

In February, we revealed how only 1.2 per cent of households have taken advantage – or around 55,000. That’s despite typical savings of nearly £144.   

Around 1.1million households are said to be struggling to afford a home broadband service, a crucial lifeline in a world which has become digitally focused.

It is likely these problems will worse this year due to inflation and the wider squeeze on household finances.

Discounted broadband packages – known as ‘social tariffs’ – are available to an estimated 4.2million households in receipt of Universal Credit, but despite the savings to be made, Ofcom suggests 84 per cent are unaware that the tariffs exist.

Switching onto a social tariff could provide some financial relief for eligible households as a standard broadband package costs an average of £27 per month – or 8.3 per cent of their monthly disposable income for those on Universal Credit.  

Ofcom also estimates that a £15 social tariff would almost halve their broadband costs and use up 4.6 per cent of disposable income. 

Sky says those claiming Universal Credit or Pension Credit, and are named on the Universal or Pension Credit monthly statement’s will be eligible for the specially discounted package.  

The Basics tariff costs £20 a month, and comes with Sky’s fibre broadband with an average download speed of 36Mb/s as standard. 

It comes in a new 18-month contract, but if you need to leave before it ends, Sky have said they won’t charge any early termination fees on their Sky Broadband.   

However, the discounted tariff is only available to customers who already have Sky Broadband, as they urge existing customers who are eligible to get in touch.

For customers who are not currently with Sky, NOW Broadband has also launched a similar package that might be suitable, offering speeds of around 36Mb/s for £20 a month.

Currently six broadband providers – BT, Community Fibre, G.Network, Hyperoptic, KCOM and Virgin Media O2 – offer at least one of these specially discounted deals. 

These packages are priced at between £10-£20 a month for broadband speeds ranging from 10Mbit/s to 67Mbit/s. 

Lindsey Fussell, Ofcom’s network and communications group director, said: ‘We’ve been calling on broadband firms to do more to support customers suffering financial hardship. 

‘So we’re pleased Sky has responded with a special discount for people on low incomes. 

‘We want to see all providers step up and offer these packages, and promote them more widely.’