Virgin Media UK Cuts Price of Social Tariff – Adds 50Mbps Plan

UK ISP Virgin Media (VMO2) has today announced that they’ve reduced the monthly price of their “Essential Broadband” plan from £15 to £12.50, which offers speeds of just 15Mbps (2Mbps upload), unlimited data usage and a 30-day rolling contract to those receiving Universal Credit. But they’ve also added a new 50Mbps option.

The move came after Ofcom criticised the connection speed of Virgin Media’s social tariff last month (most of their rivals offer 30Mbps or faster), while telling the operator to “strengthen its support by offering a superfast social tariff … the company’s current basic offer is an industry outlier and does not recognise the importance customers place on speeds” (here).

The Essential package is broadband-only service, which means that if an existing customer has a phone package, then they will not be able to retain that in the downgrade. But related customers can still take a Virgin Mobile plan if they want, which will be billed separately.

In terms of the new speed option, Virgin Media will now complement their cheaper 15Mbps tier with an optional 50Mbps one (Essential Broadband Plus) for those on benefits, which costs £20 per month.

Jeff Dodds, COO of VMO2, said:

“We have a long history of stepping up in tough times and now is no different.

Connectivity remains an essential part of our lives, so we are boosting the support we provide to those who need it most in the cost-of-living crisis. We’re taking steps to increase awareness of our social broadband plans, while making it easier to sign up, and are calling on the Government to cut VAT on social tariffs which we will directly pass on, helping those struggling most to save even more.

Through continued network investment, and a range of products at different price points and speeds, we consistently provide incredible value to customers and will keep playing our part in this challenging climate.”

The plans are available to both new and existing customers, although the new 50Mbps option won’t officially go live until November 2022. The company will also give any ‘Essential Broadband Plus’ customers the option to add their latest Pay TV entertainment product, ‘Stream‘, for an upfront, one-off fee of just £20 – a 42% saving on the normal £35 charge – with no long-term contract or ongoing charges for the basic package.

Any customer taking ‘Stream’ can get 10% credit back on the subscriptions (paid streaming apps etc.) they add to the service via their Virgin Media bill, giving them a more affordable way to subscribe to major streaming services.

Virgin Media has also repeated its call for a cut in VAT on social tariffs, from 20% to no more than 5%, which is in line with other utilities such as gas and electricity. VMO2 has committed to directly pass on any VAT cut in a price reduction to all its Essential Broadband plans, which would mean a further price drop to just £10.93 for 15Mbps and £17.50 for 50Mbps. But so far, the Government has shown no sign of doing this.