Recommendation 27

HM Government Acknowledged

Response to 26 and 27 to people’s lives. In order to ensure that those in financial difficulty have access to the connectivity they need, there are currently social tariffs in place that provide low cost landline and broadband services for those on means-tested state benefits, including BT 16 Impact of Covid-19 on DCMS sectors: Government Response Basic and KCOM’s Flex packages. On 26 August 2020, Virgin Media announced that in Autumn 2020 it too would be launching a new low-cost broadband service for its customers in receipt of Universal Credit. In response to Covid-19, as the Committee has recognised, government and Ofcom agreed a package of measures with the telecoms industry to support vulnerable consumers, including those who needed additional data. Industry commitments included removing data caps on fixed broadband packages, and free or low cost data boosts on mobile services. To further improve support for vulnerable consumers, in July 2020, Ofcom published its guidance for providers on treating vulnerable consumers fairly,2 suggesting measures telecoms providers can adopt to make sure those who are vulnerable get the help, support and services they need. This included measures on treating fairly customers who faced problem debt, emphasising that disconnection was a serious step and should only be used as a last resort. As set out in the response to its consultation on implementing the European Electronic Communications Code,3 the Government has committed to requiring Ofcom to monitor the evolution and level of retail prices for fixed broadband and telephony, and, if considered necessary by government, to provide advice on the affordability of Universal Service Obligation services for consumers with low incomes and special social needs and potentially take action in relation to such services. A key aspect of affordability relates to consumer engagement levels, because it is by switching that consumers can benefit from cheaper and better deals. For this reason, the Government and Ofcom have taken steps to improve consumer engagement in the telecoms market. This includes a new requirement on telecoms providers to send out notifications to their customers when they are close to the end of their contract. In addition, the Government’s Smart Data Review looks to increase data portability across markets, including in telecoms, which would encourage the development of new third party services, and in turn allow consumers to easily find and act upon deals better suited to their needs. Ofcom is taking forward implementation for telecoms via their Open Communications initiative, and in July 2020 published a consultation with their proposals. Going forward, Ofcom is undertaking research on affordability issues in the communications market, and intends to publish their review later this year. This will improve the evidence base of where households face difficulty, and inform any future interventions. Government will continue to monitor the situation.