Consumer Panel calls on Government and industry to ensure low income fixed-line consumers who should be exempt don't pay 50p broadband tax
15 February 2010
The Communications Consumer Panel is calling on the Government and industry to ensure that low-income consumers with landlines know that they will be exempt from paying the tax if they sign up for a social tariff. The Treasury’s consultation on the implementation of the landline tax closed on Friday and proposed an exemption to the duty for subscribers to social tariffs. These tariffs extend access to telecommunications services for people on low incomes.
Consumer Panel Chair Anna Bradley says that the 50p landline tax is a pragmatic way forward to extend rollout of superfast broadband to most parts of the UK. But the Panel is concerned that many low income landline customers could end paying the tax when they should be exempt.
“Although fixed-line customers on a social tariff won’t have to pay the landline tax, only 850,000 are currently on these cheap phone rates out of a possible three to four million people across the country,” Anna Bradley said. “The Panel would like to see government work with industry to raise awareness of the social tariff to ensure people are not disadvantaged.”
The 50p per month tax, introduced by business secretary Lord Mandelson in the Finance Bill, will build the £1bn Next Generation Fund to give 90 per cent of the UK population access to superfast broadband by 2017.