People on Universal Credit given extra £202 but are 'in the dark about it'

James Rodger
·2-min read

People who are on Universal Credit from the Department for Work and Pensions have been told they can save £202 a year - but are "in the dark". Universal Credit claimants can access savings of £202 on average thanks to social tariffs, experts say.

On average, an eligible household could save £202 per year by switching to a social tariff. Social tariffs are discounted rates offered by providers to low income or financially struggling families for essentials bills such as broadband, home and mobile phone, gas, electricity and water.

Social tariffs are cheaper than regular packages but are delivered in exactly the same way as normal services, just at lower prices. Ofgem reports: "On average, an eligible household could save £202 per year by switching to a social tariff.

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"This illustrative calculation is obtained as the difference between the average yearly spend on social tariff and the average yearly spend on a comparable commercial tariff." You’ll qualify if you receive government benefits, such as Universal credit, Pension credit, Income support, Income-based jobseekers allowance and Income-based employment and support allowance.

Matthew Upton, Acting Executive Director of Policy & Advocacy at Citizens Advice, said: “Social tariffs put money back into people’s pockets. But as it stands, a shocking 95% of eligible households are together missing out on a £200 saving each year. That’s £824 million of support going unclaimed.

“These latest figures show firms are still moving at a snail's pace. As they only have to offer these tariffs on a voluntary basis, they clearly aren’t incentivised to promote discounts. If this current rate of uptake continues, it will take 25 years before they reach everyone eligible.

“While we support the drive to raise awareness, the poor take-up looks like groundhog day. It’s time to question whether firms offering social tariffs on a voluntary basis really works.”

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