It has been claimed in a recent report that the fifty pence a month broadband tax that the Labour government is determined to press ahead with could force many poorer households to have their Internet disconnected.

Until recently broadband access was made affordable for households on both low and higher incomes, with prices that packages that cater for all needs and pockets. However, concern has now arisen about the broadband tax that is being pushed through by the Labour government, with a number of report claiming that up to one hundred thousand lower income families could end up having their Internet disconnected as a result of the broadband tax, which they will find unaffordable.

The chief executive of broadband giant Talk Talk, Charles Dunstone, has commented on the broadband tax recently, stating: “This is an unjust and regressive tax on all phone customers which will subsidise mostly richer rural households that can afford high priced super-fast broadband services,” said Charles Dunstone, chief executive of TalkTalk, one of the UK’s biggest internet service providers.”

He added: “As well as being unfair we estimate that the increase in price will mean that over 100,000 mostly low income homes will be forced to give up their broadband lines. This is wholly inconsistent with the Government’s plans to tackle digital exclusion by increasing uptake and use of broadband.”

He also said: “Crucially the scheme is likely to delay next generation broadband roll-out in rural areas rather than hasten it as private investors will wait for public funds to be made available. This will mean that much of the tax will be wasted investing in networks that the private sector would have built themselves anyway.”

Source – Financial Advice