Which? wants VAT cut to help 5.7 million households struggling with mobile and broadband costs
Millions of UK households have been forced to cut back on spending on food and clothes to pay for mobile and broadband services, according to new research by Which?.
The consumer group found that 5.7 million households struggled with the affordability of telecoms packages in April due to the cost-of-living crisis.
The report estimates that at least 3.5 million customers had to either cancel their service outright or reduce spending elsewhere in an attempt to pay for monthly packages.
The number of households with “multiple” affordability issues also surged by 56%, with low-income households the most affected.
Which? said that the fact that customers are making sacrifices to pay for mobile and broadband services is a testament to how “essential” they are to modern life.
It now wants the government to cut VAT paid on telecoms from 20% to 5% in line with essential services such as gas and electricity.
This would help to reduce the financial burden on consumers and allow them to pay their bills at a time when inflation has skyrocketed to a 40-year high and energy bills have soared.
Which? director of policy and advocacy Rocio Concha wants big businesses to do more to support people during the cost-of-living crunch.
She added: “Businesses must support anyone struggling to afford their bills and ensure consumers are aware of and able to access the best deals.”
Social tariffs can provide a safety net for the lowest-income households facing affordability issues.
Concha also stated that providers should notify customers if they are eligible for discounts, while also providing support to those struggling with payments.