With the cost of living rising at a frightening rate, many are feeling the squeeze on their finances. Fortunately, there are ways to cut your bills and BT offers fast fibre broadband almost half price if you're on benefits.

Anyone on Universal Credit (or certain other benefits) in the UK can get BT's Home Essential fibre broadband internet (plus phone calls) from only £15 per month. The discounted rate, reduced from £27.99 per month could help up to 4.6 million households. All you pay on top of that monthly charge is a £9.99 postage fee to send out the BT Smart Hub router.

Both new and existing BT customers can sign up for 12-month contracts without any early exit fees, and you'll pay the discounted rate even if you come off benefits during that period. After 12 months, your eligibility is reassessed.

BT’s research found that 74% of Britons would struggle to improve their financial well-being without internet access, while 79% of “financially vulnerable people” needed broadband access to maintain their household finances. The reduced tariffs, which BT says are being provided "at cost", offers savings of over £330 per year – a welcome amount to those hit hardest by the increased energy, fuel and food prices.

The broadband provider offered a similar incentive back in 2008 - the 'BT Basic plan' - which reduced phone costs for those on Universal Credit without any income. The current offer broadens the eligibility to those who are on low income as well.

BT Home Essentials is available to those:

  • On Universal Credit
  • Receiving Pension Credit (Guarantee Credit)
  • On Jobseeker’s Allowance (you must be eligible)
  • On Income Support
  • On Employment and Support Allowance (you must be eligible)

Unlike BT’s Basic plan initiative that offered jobseekers reduced telephone call rates, the new scheme also includes those who are on a low income.

If you're already using BT broadband and are eligible for the reduced rate, you should be able to switch to the new plan right away, without any additional costs.

What is BT's Home Essential broadband, and how much does it cost?

  • £15 per month for 36Mbps average download speed, with 700 minutes of calls to UK landlines and mobiles or;
  • £20 per month for 67Mbps average download speed, with unlimited calls (to UK landlines and mobiles)
  • £9.99 postage and packaging cost
  • No additional line rental costs
  • 12-month access even if benefits end
  • No early exit fee

Sign up for BT Home Essentials broadband

You'll need enter your postcode on BT's website to see the maximum speeds available in your area. Find out which speed is right for you in our broadband guide.

BT’s Unlimited Fibre Essential broadband package offers average download speeds of 35-36Mbps, upload speeds of 8-9Mbps and typically costs £27.99 per month. That's plenty for day-to-day browsing, light (non-4K) streaming, social media, and video calls.

BT's reduced pricing drops the rate to £15 per month and includes 700 minutes calls to UK landlines and mobiles.

There aren't any line rental fees either, only a £9.99 postage and packaging cost to receive the router. You could alternatively opt for a call-only plan for £10 per month with unlimited minutes too, a service that otherwise costs £36.77 per month – that's a £321 saving in a year. However, this isn't particularly competitive when many SIM-only deals offer mobile data alongside unlimited minutes for £10 per month.

Eligible customers who require faster broadband speeds can opt for the Unlimited Fibre Plans. This offers average download speeds of 67-73Mbps upng 17-18Mbps upload speeds too, with unlimited calls, for £20 per month.

This package effectively combines BT’s Fibre 2 broadband plan, which costs £32.99 per month, with the unlimited phone plan that costs £36.77 per month. Again, the price includes line rental and there isn't a minimum term. The reduced rate saves you £597 per year.

The higher speed is more appropriate for moderate- to high-usage households, especially with five or more people. You might be using multiple devices such as phones, tablets, and laptops all at the same time.

Speeds vary by postcode, so head over to BT to see the speeds available in your area. BT will even give you £20 back if it doesn't meet its guaranteed speeds for your postcode.

See the best broadband deals available right now.

BT Home Essentials Rates

When can you sign up for BT’s Home Essential plan on Universal Credit?

BT launched the plan towards the end of June 2021, so you can sign up to BT Home Essentials broadband right now.

Cheap BT Broadband with Universal Credit

How to sign up for BT Home Essential on Universal Credit

To sign up online, enter your postcode on BT's website to see what's available at your address. You'll need to provide your date of birth and National Insurance Number so BT can check your eligibility. 

BT Home Essentials Sign Up

If you are eligible, you'll get access to Home Essentials for a year, even if your benefits end before that period. BT will run another eligibility check after a year to see if you're still eligible for the reduced rate and will get in touch if anything changes. 

You can pay your BT bill via:

  • Direct Debit
  • Debit or credit card
  • Phone, using a debit or credit card
  • Bank transfer
  • A PayPoint

Where else can I get reduced broadband rates with Universal Credit?

BT isn’t the first to offer reduced pricing for Universal Credit recipients. Virgin launched a similar tariff that offers 15Mbps for £15 per month. You can sign up for Virgin’s service here.

15Mbps is slower than BT's Unlimited Fibre Essential Plan, of course.

If you are a single-person household, you may prefer to share your smartphone's internet connection and use it like a mobile router. See affordable SIM-only deals, along with the best SIM-only deals for kids.

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