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06|10|08

Low-cost phone

A new cheaper phone package has been launched to help people on low incomes keep in touch with friends and family.

Ofcom has worked closely with BT to develop the new low-cost BT Basic service.

It costs £13.50 a quarter – including an allowance of £4.50 to spend on calls - and is open to both new and existing BT customers.

It’s available to people who claim Income Support, Income-based Jobseeker’s Allowance or Guaranteed Pension Credit.

Direct debit

Customers can pay using any existing payment methods, including at a post office, by cheque or direct debit.

And, unlike some tariffs, you won’t be charged extra if you don’t want to pay by direct debit.

The £4.50 call allowance covers local, national and international landline calls but not premium rate, mobile phones or 0845/0870 numbers.

If you go over this allowance then you’ll pay the standard 10p a minute (plus 3p for each phone call) for all normal UK calls.

Ofcom review

Customers interested in signing up can call the freephone number 0800 800 864 to get a booklet and application form.

BT has to provide special tariff schemes for low income customers as part of its Universal Service Obligation.

It already had two schemes - the Light User Scheme and In Contact - which have been in place since the 1990s.

But an Ofcom review found that both were mainly focused on low-usage rather than low-income customers.

Real benefits

We told BT a more targeted scheme should be put in place and welcome today’s introduction of BT Basic.

Ofcom Director of Consumer Policy Claudio Pollack said: 'We welcome and support BT Basic. Special schemes provided under the Universal Service Obligation can bring real benefits for those who have difficulty affording telephone services.'

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