Millions of low-income families are missing out on an annual £144 broadband saving, according to Ofcom.

The regulator said that while special discounted broadband packages – sometimes known as social tariffs – are available to an estimated 4.2 million households in receipt of Universal Credit, only 55,000 homes – or 1.2 per cent of those eligible – have taken advantage of these rates.

Currently six broadband providers – BT, Community Fibre, G.Network, Hyperoptic, KCOM and Virgin Media O2 – offer at least one of these specially discounted deals. These packages are priced at between £10-£20 a month for broadband speeds ranging from 10Mbit/s to 67Mbit/s.

A report by the authority found that 1.1 million households are struggling to afford their home broadband service. This number rises to around one in 10 within the lowest-income houses.

The study also revealed that the majority – 84 per cent – are unaware of social tariffs and take up is very low.

Ofcom has urged providers to “step up” to support struggling households by offering a social tariff, promoting discounted deals, make the information clear, and make it easy to sign up.

“People rely on their broadband for staying in touch, working and learning from home,” said Lindsey Fussell, Ofcom network and communications group director. “But for those who are really struggling with rising bills, every penny counts.”

Fussell added: “Special discounts can make all the difference, and too many broadband firms are failing either to promote their social tariff or to offer one at all. We expect companies to step up support for those on low incomes, and we’ll be watching their response.”

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