Broadband subsidies are available in the UK through various schemes. This is part of the government’s plan to ensure users not included in suppliers’ commercial plans also have access to fast and reliable broadband.
What Are Broadband Subsidies?
The Better Broadband Subsidy Scheme, Project Gigabit, was developed by the UK government to ensure that all households and businesses have access to an affordable basic broadband service. Affordable service is defined as a service that costs no more than £400 per year. This includes the cost of equipment, installation, and the monthly fee. Project Gigabit’s rollout will mainly be carried out through large-scale contracts that offer financial support to broadband providers.
Project Gigabit
Project Gigabit refers to the government’s £5 billion funding program to subsidise the rollout of gigabit broadband. This project consists of three main parts:
- A series of procurements subsidising the roll-out. Broadband suppliers will bid for contracts in specific areas.
- Vouchers worth up to £4,500 in eligible rural areas to subsidise the cost of the new connection.
- Funding for public sector buildings to be connected.
What Is The Purpose Of These Subsidies?
Broadband subsidies aim to increase access to high-speed internet in areas that are underserved. This is achieved by making broadband services more accessible to individuals as well as more affordable. These subsidies also support infrastructure development by expanding broadband networks into areas that were previously underserved and did not have access.
Economic Growth
Economic growth will be fostered as a result of these expansions. Businesses will be able to participate in the digital economy, and economic development will be boosted in previously underserved areas. Remote work will become available to individuals who do not have access to these types of opportunities due to their area being underserved.
Improving Access to Essential Services
Online learning will be possible for individuals who now have broadband access. Individuals who now have access to better broadband will have improved access to other services like healthcare for remote consultations and government services.
Addressing The Digital Divide
All individuals will have access to high-speed internet, regardless of location or socioeconomic status. This will strengthen communities by facilitating communication and connecting residents. The above will all be achieved using the Gigabit Broadband Voucher Scheme (GBVS) as well as Social Tariffs.
Who Is Eligible?
Eligibility for subsidies is determined by many factors, as there are two ways in which an individual can benefit.
The Gigabit Broadband Voucher Scheme
To be eligible for the Gigabit Broadband Voucher Scheme, certain criteria must be met. The criteria for individuals include:
- Existing available broadband speeds that are less than 1Gbps
- It is unlikely that a gigabit-capable network will be built in the area in the near future
- There is not yet a government-funded contract in place or planned to improve the network
- The premises are not unoccupied or built in the last two years
In addition, for a business to qualify, different criteria apply. The eligibility depends on the size of the business as well as whether the business is located in designated high-competition locations.
Social Tariffs
The following people qualify for social tariffs:
- If you or a member of your household claims Universal Credit, it is possible to switch to any of the available tariffs
- The major providers include people on Pension Credit
- Employment and Support Allowance
For the social tariffs, it is important to note that the person receiving the benefit needs to be the main person on the contract, otherwise they will not qualify.
