Major mobile operator launches cheap tariff for people on Universal Credit and benefits – check if you qualify

VIRGIN Media O2 introduces a new mobile phone tariff for people with low incomes.

The O2 Essential Plan is a social tariff available to new and existing customers, from which you will receive a range of benefit payments.

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It includes 10GB of mobile data and unlimited calls and texts for £10 per month.

The plan can be purchased as a rolling contract with a term of 30 days, has no activation or exit fees, and there are no price changes while customers receive performance payments.

In comparison, other O2 contracts with a 30-day term are closest in price at 5GB for £23 per month, followed by 1GB for £20 per month.

These are 30-day rolling rates for people who want flexibility.

The Essential Plan is available to people who receive any of the following government support payments: income-related Employment Support Allowance, income-related Unemployment Allowance, Income Support, Pension Credit or Universal Credit.

Christian Hindennach, Chief Commercial Officer at Virgin Media O2, said: “Virgin Media O2 is proud to offer a range of comprehensive measures to enable people on low incomes to get online and stay in touch with their loved ones.

“We know that mobile connectivity is already very affordable in the UK, but the launch of the O2 Essential Plan builds on our existing wide range of support for people experiencing financial difficulty.

“These include our broadband plan for people on support payments, the National Database which provides free mobile data to people in need, and our Community Calling programme which gives smartphones to people who need them.”

Here, interested parties can find out more about the Essential Plan, check their eligibility and apply.

What is a social tariff?

Social tariffs are cheaper broadband and phone packages for people receiving Universal Credit, Pension Credit and some other benefits.

Some providers refer to it as “essential” or “basic broadband”.

Delivery is the same as for normal parcels, but at a cheaper price.

With the cost of living rising, Ofcom is encouraging companies to offer social tariffs to help low-income customers.

Many households do not use cheap Internet offers, even though they would be possible.

Recent research by comparison site Uswitch has found that around 10 million households are unaware of social tariffs – and they could save up to £234 a year.

You could save even more. The Sun previously spoke to one woman who cut her costs by £300 a year.

Another saved £594 in 12 months by taking out one of the plans.

If you or someone in your household is claiming Universal Credit, you can switch to one of the available plans. Current prices range from £10 to £23.

Most plans offer superfast broadband with speeds of over 30Mbps – fast enough to stay in touch with friends and family, stream HD movies or shop online.

If you have to pay any setup costs, they should be minimal and your provider should inform you of this before you sign up.

If your provider offers a social tariff, you can switch to it free of charge at any time.

You do not pay more than the amount agreed at the start of the contract – and there are no costs for leaving the tariff early.

Some providers offer cheaper broadband packages that are only available to customers with certain services.

BT and KCOM also offer cheaper phone-only landline tariffs to eligible households. See the BT and KCOM links below for details.

Am I entitled to a social tariff?

How you can apply for a social tariff depends on the provider you register with.

Providers now offer packages with different speeds and prices and not all are available across the UK.

Prices range from £10 to £23 per month.

The regulator Ofcom has published a list of all social tariffs currently offered on its website.

It is also worth comparing offers via comparison sites such as MoneySupermarket and GoCompare.

To be eligible for a social tariff, you must be receiving social benefits, although each provider can set its own eligibility criteria.

Benefits that qualify you for a welfare rate include: Universal Credit, ESA and Jobseeker’s Allowance.

Not only broadband providers offer social tariffs, they are also available for mobile phones.

You can also view a list of providers offering mobile phone tariffs on the Ofcom website.

Please visit each provider’s website for more information, including who is eligible and how to register.

Another benefit of social tariffs is that you may not be charged an exit fee if you stay with the same provider and switch to their social tariff.

But even if you get a discount, you should still check whether you are getting the best deal.

There are often no fees for early termination of a social tariff, but you should still check the conditions carefully.