Social tariffs for broadband, phone and water

A social tariff is a cheaper deal on an essential service for people on a low income or certain benefits. Broadband and mobile providers offer them, and some water companies do too. If you get Universal Credit, Pension Credit or another qualifying benefit, you may be able to pay less each month for the same connection.

The catch is that these tariffs are not automatic. You usually have to ask, and many people who qualify never do. Just 3% of UK households receiving Universal Credit are on a social tariff¹. The rest pay the standard price.

Universal Credit is the benefit that most often opens the door. It is a monthly payment to help with your living costs², means-tested and non-taxable, paid monthly³. It replaces six legacy benefits and tax credits for working-age households on a low income⁴. If you are already on it, you may be able to cut your broadband, mobile or water bill this month.

What a social tariff actually is

A social tariff is a reduced price for broadband and some landline services, aimed at people on a low income⁹. Mobile providers run similar deals. Water companies offer their own versions, usually a discount on the bill rather than a different product.

The tariffs are not a separate product you have to shop for. They are the same connection at a lower monthly cost, and you stay with the same provider. What changes is the price and, sometimes, the speed or data allowance on offer.

Eligibility is usually tied to benefits. Independent guidance says you may be able to get a social tariff if you get certain benefits or live on a low income⁵. For broadband and phone, getting Pension Credit or Universal Credit makes you eligible⁵. Individual providers list the benefits they accept. The 4th Utility Broadband Social Tariff lists Universal Credit⁴. Northumbrian Water's social tariff lists Universal Credit³. SMARTY's mobile social tariff lists Universal Credit¹⁰.

The gap between who qualifies and who claims is wide. Only 3% of UK households receiving Universal Credit are on a social tariff¹. That means most eligible households are paying full price, often because they do not know the tariff exists or assume it is automatic.

Universal Credit: the benefit that opens the door

Universal Credit is a monthly payment to help with your living costs². It is means-tested, non-taxable and paid monthly³. It replaces and combines six legacy benefits and tax credits for working-age households with a low income⁴.

It was first introduced on a phased geographical basis from September 2017 to December 2018⁵. In Northern Ireland it has been in place since 2017 and is replacing six older benefits including tax credits¹¹.

Because it is means-tested, what you get depends on your income, savings and circumstances. The payment is made up of a standard allowance plus extra elements for things like children, housing and health conditions. One example: the disabled child addition has a lower rate of £164.79 a month, paid for a child who receives the mobility or care part of Disability Living Allowance at any rate except the highest care rate, or Personal Independence Payment¹².

If you are on Universal Credit, that is usually enough to qualify for a broadband or mobile social tariff⁵. You do not need to be on the maximum award. You just need to be receiving it.

Who can get Universal Credit

Most people who can get Universal Credit are aged 18 or over, in the UK, and on a low income or out of work. There are exceptions and conditions that catch people out.

Full-time students are usually excluded. You cannot usually get Universal Credit if you are studying full-time, but there are some exceptions¹³. You could get it if you are studying part-time¹⁴. Students in full-time education must also not be eligible for a student loan, grant or bursary¹⁵.

If you live in or move to a care home permanently, you can claim Universal Credit¹⁶. You will not be able to get support for housing costs, because care home charges are not payment of rent¹⁶. Housing cost help is also not available if you live in supported or sheltered housing that gives care, support or supervision, a refuge for survivors of domestic abuse, or temporary accommodation arranged because you are homeless¹⁷.

Couples who live together claim jointly. If you are claiming Universal Credit and live with your partner as a couple, you will usually get a single payment for your household¹⁸.

Savings limits: reduced above £6,000, no entitlement above £16,000

Savings affect what you get. The rules are the same across most means-tested benefits, and they are strict.

No benefit is payable if total capital exceeds £16,000⁷. That is the upper limit for means-tested social security benefits. Income Support sets the same threshold: you cannot have savings above £16,000¹⁹. Income-based Employment and Support Allowance requires savings of less than £16,000²⁰.

Below that, savings still count against you. Once you have £6,000 or more, your benefit is reduced⁶. The reduction is worked out as tariff income: a set amount for each band of savings above the threshold.

The rules differ slightly for older claimants. For people above the qualifying age for Pension Credit, Housing Benefit uses a more generous tariff income rate of £1 a week for each £500 of capital²¹.

Council Tax Reduction has its own savings test. You will not be eligible if you have over £16,000 in savings²².

If you are close to either threshold, it is worth checking before you claim. A free benefits calculator can show what you would get. Policy in Practice and Turn2us both cover income-related benefits, tax credits, contribution-based benefits, Council Tax Reduction, Carer's Allowance, Universal Credit, how these are calculated and how your benefits will be affected if you start work or change your working hours²³.

How earnings, housing costs and caring change your payment

Universal Credit is not a fixed amount. It moves with your circumstances, and the biggest driver is earnings.

Once you are working, you keep 45p of each £1.00 you earn until your earnings are too high to get Universal Credit⁸. That is the taper. It applies to most claimants in work.

Some claimants get a work allowance first. You can earn a certain amount before your Universal Credit payments are reduced if you or your partner are responsible for a child or young person, or have a disability or health condition that affects your ability to work⁸. Above the work allowance, the same 45p taper applies: you will keep 45p from every £1.00 you earn over your Work Allowance until your earnings are too high to get Universal Credit²⁴.

Housing costs are a separate element. Help with rent is paid as part of Universal Credit for most private and social renters, but not for everyone. It is not available if you live in supported or sheltered housing giving care, support or supervision, a refuge for survivors of domestic abuse, or temporary accommodation arranged because you are homeless¹⁷.

Caring responsibilities can add to your award and can also unlock other help. If you are a carer, check whether you qualify for Carer's Allowance or Carer's Credit, and whether the person you care for gets a disability benefit that passport you to more support.

Changes in income matter. Starting a new job, getting a pay rise or a company car, extra income from workplace or private pensions, interest on savings, or changes to work benefits like company healthcare can all affect how much tax you pay and, in turn, what you keep²⁵. Report changes promptly through your journal.

Claiming: a five-week wait for the first payment

The first payment does not arrive straight away. Universal Credit is assessed monthly, and the first payment usually comes about five weeks after you claim. That gap is the single biggest complaint new claimants have.

Once your claim is running, payments go into your account. It can take up to 5 working days for your money to reach your account, depending on your bank²⁶. If you need money sooner, you can ask for an advance, which is repaid from future payments.

You will manage the claim online through your journal. You can leave a message in your journal or select 'Request to close your claim' on your homepage if you need to end it²⁷. If you want to close your Universal Credit claim, you can request this through your journal²⁸. You do not always need to close your claim yourself: if your circumstances change, the department will do this for you and will also check if it owes you any money²⁷.

Claim reviews are routine. You will get a message in your online journal asking to see your bank statements, plus documents about housing costs, earnings or other income, self-employment, savings, childcare costs, children, student finance and caring responsibilities²⁹. These are not accusations. They are checks, and responding promptly keeps your claim running.

If you are struggling to make or maintain your claim, there is extra help available³⁰. Free and impartial advisers at Citizens Advice, Turn2us and similar services can help you fill in forms and understand what you are owed.

Does Universal Credit cover Northern Ireland?

Yes. Universal Credit has been in place in Northern Ireland since 2017 and is replacing six older benefits including tax credits¹¹. It replaces six existing benefits and tax credits: Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Housing Benefit³¹.

The structure is similar to the rest of the UK, but the Northern Ireland Executive runs its own system. Rate Rebate, for example, is available to people who get Universal Credit³². The Department for Communities handles claims, and the payment rules are set out in Northern Ireland-specific guidance.

Couples in Northern Ireland get a joint payment for the household, paid twice a month¹⁷. The same splitting options apply: you can contact Universal Credit in confidence by phone, for example to ask for any Universal Credit payments to be split⁸.

If you live in a care home permanently, you can claim Universal Credit, but you will not be able to get support for housing costs, because care home charges are not payment of rent¹⁶.

Scams, changes of circumstance and where to get help

Scammers target benefit claimants. The Department for Work and Pensions states that it will never text or email you asking for your personal information or bank details²⁷. Text messages about a claim in Northern Ireland are always clearly marked from the Department for Communities and will never ask you to give, or click a link to give, personal information or financial details by message or email³³.

Common scams include calls claiming to be about correcting your Council Tax band or giving you a Council Tax rebate³⁴. Conveyancing scams target home buyers, and the advice is to confirm payment details or changes to payment details in person or over the phone on a trusted number³⁵.

If you have been scammed, there is a free confidential service available to talk it through with Victim Support³⁶. The Payment Systems Regulator has been looking at how banks and payment system operators manage the risks from these types of scams, including possible changes to legislation or regulation³⁷. It has also consulted on policy proposals and any amendments to the relevant legal instruments required to implement them⁹.

Report changes of circumstance promptly. If your earnings, savings, housing or household change, tell the department through your journal. Late reporting can lead to overpayments you have to pay back.

For free, impartial help, contact Citizens Advice, Turn2us or your local welfare rights service. If you are in debt, StepChange and similar charities offer free advice⁹. If you are a carer, Carers UK has guidance on keeping safe from scams³⁶.