UK: Shadow Culture Secretary will announce that a Labor government will impose low-cost broadband tariffs for low-income households, as well as act on mid-contract price hikes.
Labor would argue that broadband is an essential utility and data from telecom regulator Ofcom shows that nearly a third of households (8 million) have difficulty paying their broadband, phone and streaming bills. This is more than double what it was a year ago.
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Labor will say in a policy announcement on Thursday that an industry-wide social tariff for low-income households should be negotiated by industry players, such as Openreach, which runs the UK broadband network, with Ofcom and consumer groups.
The party would argue that if a tariff cannot be agreed upon, a Labor government would impose one and pass legislation to enforce it.
Universal Credit recipients may already qualify for heavily discounted broadband deals from some providers, but the programs are not widely publicized or understood.
There is no requirement for telecom companies to provide social charges for broadband services. According to Labor Analysis, customers who qualify for a social fee can save an average of £250.32 per year.
The party has also said it will reverse changes that now allow wholesale broadband prices to rise with the rate of inflation rather than cost, resulting in an unexpected £1.7bn profit for providers.
This October, wholesale prices for 2023 will be set, with inflation expected to reach a high of 13%. As a result, broadband bills can go up by a quarter.
The third component of the plan is to give Ofcom more powers to strengthen consumer protections, such as mid-contract price increases and early termination fees.
This offer falls short of the promise of universal free broadband in the 2019 manifesto. Although the Conservatives widely mocked that pledge by then-Labor leader Jeremy Corbyn, recognition of Internet access as a universal right grew during the COVID pandemic, when work and home schooling were essential to millions. happened.
According to Lucy Powell, the shadow secretary for digital, culture, media and sport, Labor's plans will "easily ease the broadband bang facing families and firms" when both are "already with eye-watering energy bills, mortgages, etc." , and with many more." And were facing a hike in rents."
“While conservatives ruin our economy, Labor will ensure that access to digital infrastructure, and the growth power of our economy, will ensure that people and places are not left behind,” she said.
Unlike energy and gas, where suppliers cannot increase prices mid-contract unless VAT rates change, broadband and mobile are the only utility sectors that allow mid-contract price increases.
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In addition, there is little or no promotion of the existing tariffs. according to which? Research from May 2022, only one provider advertised its social tariffs on social media, and none of the providers asked customers if they received any benefits when signing up for a new non-social tariff deal.