Your Engineer Is Here!...

Call us now or complete the simple form below. Our account managers will help and advise you to make your business communications more productive.





8 million households in the UK struggle to pay their telecom bills, according to Ofcom.

8 million households in the UK struggle to pay their telecom bills, according to Ofcom.

The largest telecom companies have been urged to reconsider the inflation-busting price increases scheduled for the spring after a record 8 million UK households reported difficulty paying their mobile, broadband, pay-TV, and streaming bills. This comes after the media regulator issued a warning to the industry.

One in seven households has reduced their expenditure on other items, such as food and clothing, to be able to afford their communication services, according to Ofcom’s annual affordability survey, while 9% have terminated a subscription.

From 15% to 29% of consumers nationally, the number of families having trouble paying their telecom bills has doubled in the past year, reaching the greatest level the regulator has ever seen.

Given that the cost of living problem is projected to make things worse, Ofcom urged telecoms providers to abandon the methodology for determining yearly price increases in April. Many service providers, including BT, TalkTalk, Shell Energy, and Vodafone, adopt this system, which raises costs by the rate of inflation in January as determined by the consumer price index + 3.9%.

“The cost of living crisis is putting an unprecedented strain on household budgets,” said Lindsey Fussell, Ofcom’s networks and communications group director. “This includes a much stronger emphasis on offering and promoting social tariffs, as well as thinking carefully about whether significant price rises can be justified at a time when the finances of their customers are under such pressure.” A number of telecom providers have been recognised by Ofcom as not providing “low-cost” social tariffs and for charging exorbitant early termination fees to customers who switch to one.

The regulatory body demanded that EE, Vodafone, TalkTalk, Shell Energy, and Plusnet introduce social prices for all of their broadband plans. According to Ofcom, only Vodafone has introduced a social price for mobile plans named Voxi. Ofcom also criticised companies who do offer social tariffs for failing to advertise them widely or online, with over 70% of eligible customers ignorant that such charges exist. Just 3% of all eligible homes have signed up for broadband social tariffs, which has more than doubled in the last six months from 55,000 to 136,000 users.

Ofcom has updated its recommendations for how telecoms firms should assist consumers who are in debt or having trouble making ends meet.

“Restricting the services of someone who is particularly reliant on them, to push them into paying outstanding bills, should be avoided or limited,” said Ofcom. “Disconnection should only ever be used as a last resort.”

The regulator advised telecoms firms to reach out to clients in need of assistance via a variety of channels, including letters, emails, phone calls, and texts, in addition to providing social tariffs to these customers.

“It is essential the industry puts its customers first and focuses on what more it can do to help support them,” said Fussell.

At a meeting organised by the government in June, the largest mobile and broadband providers in the UK came to an agreement on a plan to assist clients having trouble paying their bills.

The consumer group Which? projected in a recent article that 5.7 million families had at least one “affordability issue” with their mobile, landline, or broadband service in April, including missing a payment or needing to cancel or change a subscription.

Need more information?

Call us now on
0800 988 0094
for immediate assistance or just to speak to one of our friendly experts!

Sign up for the latest news!