House of Lords Report Calls for VAT Cut on Low-Cost Broadband for Benefits Recipients

The report found that 1.7 million households in the UK have no internet at home, and up to a million people have cut back or cancelled their internet packages in the past year.

Services from benefits to banking are increasingly moving online, and 90% of jobs are only advertised online.

Many care-leavers and people who can't afford data have difficulty accessing online services, filling in forms, and managing benefits claims.

The report accused the government of taking its "eye off the ball" and said the scale of the problem is a "direct consequence of political lethargy." Peers want to see more use of social tariffs, which are discounted deals offered by firms to people on benefits, but only 5% of the 4.3 million who are eligible use them.

The Ofcom chief executive met with regulators, including the Chancellor, to discuss the cost-of-living crisis.

After the meeting, Dame Melanie Dawes stated that Ofcom would urge telecoms companies to raise awareness of social tariffs.

The Internet Service Providers Association agreed that a new digital inclusion strategy was needed and that there is a commitment across the broadband sector to help more people get online through social tariffs and support.

However, the government needs to review VAT on broadband to make a difference.