HomeInsightsOfcom publishes annual research into affordability of communications services

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Ofcom’s annual affordability study shows that record numbers of households are struggling to afford their communications services. The study finds that nearly a third (29%) of customers (around 8 million households) are having problems paying for their phone, broadband, pay-TV and streaming bills. The number of struggling families has doubled over the last year (from 15% in April 2021) and now stands at its highest level since Ofcom records began.

The research also shows that millions of low-income households are still missing out on broadband “social tariffs” (special discounted superfast connections priced at around £10-£20) because, Ofcom says, “providers are not doing enough to advertise this support or are refusing to offer these packages at all”.

While take-up of broadband social tariffs has more than doubled in the last six months, rising from 55,000 to 136,000, only 3% of eligible households have signed up. Therefore, 97% are missing out on average annual savings of around £144 per year.

Ofcom is therefore urging telecoms firms to do more to support their customers through the cost-of-living crisis. Ofcom has also updated its guidance on treating vulnerable customers fairly, advising on how firms should support customers in debt or struggling to pay.

Ofcom is also pressing firms to consider whether large price rises can be justified at time of exceptional financial hardship. To access the affordability study, click here. To access the new guidance, click here. To read the speech by Lindsey Fussell, Ofcom’s Group Director, Networks and Communications, delivered at the Connected Britain conference on price rises, click here.