For a very long time, since before it was BT, there have been special BT tariffs for low income customers. It used to be a "light user scheme", which fell foul of competition from the likes of Mercury for a bit, but has changed over the years.
The principle is that the majority land line provider, BT, has to offer a social care special tariff for people on low income to ensure they can afford a means of communications. It is now called "BT Basic" and "Basic aims to keep phones ringing in the most vulnerable households by charging as little as possible: £5.10 a month." which is not bad.
Indeed, that should perhaps be good enough, but so often these days an actual landline is not what people want, need, or use. Indeed, even £5 a month is a lot more than you need to spend if you go for some really simple "pay as you go" SIM card on a cheap mobile - and remember, non-smart phones can be purchased SIM free for like £9!
So the real question is should mobile operators be required to provide a special low income tariff. I expect they would want to only have to offer to those on benefits.
What would such a package need to offer?
This is just my musings from what I know of how it works...
Many of these things are covered by PAYG packages. What would make sense is a consistent package, basically the same on all of the major networks, with the same costs, so people can make sure they get the right package if they are on benefits and just need to stay in touch.
Obviously it has to be SIM only - the packages that include the "latest phone every 6 months" can only do so by charging enough on an ongoing basis. Cheap SIM free phones are readily available, so this is not a problem for someone on low income that needs to stay in touch. No, it does not get them a nice "smart-phone", but they do cost money, sorry.
In general mobile phone companies can still make some profit on incoming calls, it is not ideal these days, but basically there is a good argument that keeping a SIM live on the network is almost no cost, and even the occasional incoming call can cover that cost. So it makes a lot of sense if such a package has no ongoing rental. That way someone can stay in touch if they have no income and people call them. Some PAYG packages work like that. The same applies to incoming SMS. If you have no money at all and cannot afford to make any calls apart from 080 numbers, people can still call you back.
Freephone calls from mobile are now set up to ensure the mobile operator gets some reverse payment for the call, and so such a service could offer freephone calls (080 at least, even if not 00800) for no charge. The recipient pays.
Mobile data is a tricky one - I image that is not "needed" for a social care package, but maybe that is changing and actually it is becoming more important. It makes a lot of sense if this is pre-pay and charged but at some sensible rate. The whole "data" and "access to the Internet" debate is somewhat separate.
I guess outgoing calls make sense to charge on a simple pre-pay, pay as you go basis, but something the operator can manage like 1p/minute to normal numbers and something sensible for actual SMS. I suspect that this is close to cost price for a lot of operators, but this is a social "low income" package here.
Special numbers - a good gesture would be to allow 030 numbers to be free, or a certain number of minutes per month free. This is tricky as they will cost the mobile operator, but they are unlikely to be abused as they are numbers only for government and registered charities. It would make sense for the universal credit helpline to move to an 0300 number for this. I am puzzled as to why they are on an 03 and not an 030 number now!
International calls - a fair price on a pre-pay basis may make sense.
I would be in favour of such a tariff not allowing any sort of premium rate calls or texts at all. They can be a trap for those on low income, especially gambling...
So what do you think?
Should the big mobile operators be obliged to offer such a tariff to people on benefits?
(Yes, as I say, some PAYG tariffs are damn close, but should there be a defined tariff and all operators offering it?)
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