BT slashes fibre broadband prices for people on benefits

More than 4 million households should be eligible for sub-half-price connectivity deals

BT is to cut the prices of its fibre broadband packages to people receiving state benefits such as Universal Credit, with more than 4 million households able to apply for the package.

From June the telecoms giant will offer its BT Home Essentials package, which offers download speeds of around 38 Mbps, for £15 per month to those eligible, compares with the usual price of £32.99. There will also be an upgrade option offering 67 Mbps average download speed for £20 per month. Packages include 700 minutes of landline calls.

The scheme will be restricted to those in receipt of Universal Credit, the Guarantee Credit element of Pension Credit, Jobseeker's Allowance, Income Support or the Employment and Support Allowance. It is estimated that more than 4 million households will be eligible for the new service.

In a statement, Marc Allera, CEO of BT's consumer division, said: "We want to help as many people as we can, which is why at the end of June we'll be launching BT Home Essentials, increasing the eligibility of our social tariff to include all customers on Universal Credit."

BT's move to reduce broadband prices for people on benefits comes after a similar offer from Virgin Media, which launched its 15 Mbps Essential Broadband service last November to existing customers on Universal credit.

Pandemic lockdowns have exposed the UK's digital divide, with many households limited in their ability to work or attend online lessons from home because of unreliable or slow connectivity and a lack of equipment.

Digital infrastructure minister Matt Warman said "In today's digital world, everyone should be able to access fast, reliable and affordable internet, so I'm thrilled that BT is the latest provider to launch new deals for low income households."