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A new £10 a month mobile contract, including internet data access and calls, has been launched for those on low incomes and benefits.
The deal from Virgin Media O2 comes in response to concerns that tech companies are not doing enough to publicise cheap social tariffs on mobile and broadband for struggling customers.
Access to mobile calls and the internet are now considered essential in terms of accessing public, banking and other services yet many struggle to afford the monthly cost.
Research for the telecoms industry regulator Ofcom suggests 2.6 million households find it difficult to afford their mobile phone service.
The new O2 Essential Plan comes with 10GB of mobile data, plus unlimited calls and texts for £10 per month.
It is specifically available to people who receive any of the following government support payments:
Income-based Employment Support Allowance (I-ESA)
Income-based Jobseekers Allowance (I-JSA)
Income Support (IS)
Pension Credit (PC)
Universal Credit (UC)
Virgin Media O2 said the new tariff is designed to improve digital inclusion across the UK, which includes a goal to connect one million digitally excluded people through free and affordable connectivity and services.
The Essential Plan can be taken as a 30-day rolling contract. There are no activation or exit fees, and no price changes while customers receive benefit payments.
Details on how to apply and check on eligibility can be found here. Customers can also access Priority from O2 and enjoy over £200 in additional value compared to other mobile operators, it is claimed.
This includes exclusive rewards and experiences as well as access to a wide range of concert tickets 48 hours in advance of general sale. In addition, customers will get inclusive EU Roaming as standard, too.
Christian Hindennach, Chief Commercial Officer at Virgin Media O2, said: “Virgin Media O2 is proud to offer a range of comprehensive measures to help people on low incomes to get online and stay in touch with loved ones.
“While we know mobile connectivity in the UK is already very affordable, the launch of the O2 Essential Plan builds on our wide range of existing support for people experiencing financial difficulties.
“This includes our broadband plan for people receiving support payments, the National Databank providing free mobile data for people in need, and our Community Calling scheme which rehomes smartphones with people who need them.”
Separately, Virgin Media O2 also offers Essential broadband and Essential broadband plus plans which offer a reliable broadband service for people who receive benefit payments.
Essential broadband offers speeds of 15Mbps and costs £12.50 per month. Essential broadband plus provides 54Mbps broadband for £20 a month. Both plans have no fixed-term contract length and no price changes for customers on either plan while benefit payments are being received.
Essential broadband plus customers also have the option to add Virgin Media O2’s entertainment product, Stream, for an upfront, one-off fee of £20, which is a 42 percent saving on the normal £35 charge. Stream plugs into any TV and combines live TV, on-demand apps, popular streaming subscriptions, and movies.
Any customer taking Stream can get 10 percent credit back on the subscriptions they add to the service via their Virgin Media bill, giving customers a more affordable way to subscribe to major streaming services. The company also founded the National Databank in partnership with digital inclusion charity, Good Things Foundation.
Anyone in need can get 25GB of free O2 mobile data per month for up to 12 months through the National Databank’s network of thousands of National Databank Hubs nationwide – including O2 retail stores. People can find their nearest National Databank Hub here.