Social tariff users need to be made aware of broadband tax exemption

It has been suggested that consumers that are on low incomes and sign up to a social tariff need to be made aware that they will be exempt from paying the fifty pence a month broadband tax.

The proposed fifty pence per month broadband tax that has been launched by the Labour government in order to raise money for high speed universal broadband rollout has received mixed reactions, and amongst the concerns that have been raised with regards to the broadband tax is that some households that are classed as low income households will struggle to afford additional taxes.

However, a recent report has suggested that consumers that are on low incomes and sign up to a social tariff will be exempt from paying the broadband tax, and that awareness needs to be raised amongst lower income families with regards to this exemption. The suggestion that more information is needed for such families has come from the Communications Consumer Panel.

One official from the Communications Consumer Panel said that there were concerns that some lower income families may not realise that they could benefit from a social tariff and could end up paying the broadband tax even though they were eligible for exemption from the payment.

She stated: “Although fixed-line customers on a social tariff won’t have to pay the landline tax, only 850,000 are currently on these cheap phone rates out of a possible three to four million people across the country. The panel would like to see government work with industry to raise awareness of the social tariff to ensure people are not disadvantaged.”

Source – Cable