Home phone News
£6 a year broadband tax is back on the agenda
Wednesday 23 September, 2009
By Seamour Rathore - seamour@consumerchoices.co.uk
The £6 tax on home phone lines is set to kick-in early next year, but there are ways to beat the tax
The on-again, off-again £6 tax on home phone lines is back on according to Digital Britain minister Stephen Timms.
The minister said it could be put before parliament in the autumn’s Finance Bill and be law before the next general election, which must be held by the summer.
The broadband tax was first unveiled in the Digital Britain report published in June and will mean anyone with a fixed phone line will be liable for the 50p a month levy.
However, the tax has been widely criticised as it will not generate enough revenue to upgrade the UK to superfast broadband, as intended. It is also considered a blanket tax that could potentially disadvantage people on fixed incomes, for example pensioners, who rely on a home phone.
Michael Phillips, product director at Homephonechoices.co.uk, said: “Our concern is that the upgrading of the UK’s broadband infrastructure is a mammoth undertaking and this unpopular tax will barely make a dent in the likely total cost.”
He also highlighted research from Broadbandchoices.co.uk which indicated 50% of Brits felt that home phone line rental costs are poor value for money.
Phillips added: “This is just another body blow to customers that have already seen the majority of telecoms suppliers significantly raise line rental charges this year.”
Homephonechoices.co.uk tips for beating the broadband tax
- Switch to paying your bills by direct debit and sign-up for paperless or e-billing. The savings made should offset the cost of the tax
- Switch to a cheaper home phone line provider. Primus Home Phone Saver package at £9.49 per month is the cheapest line rental deal available in the UK and is exclusive to Homephonechoices.co.uk
- Don’t fall foul of your contract. If you're tied to a 12- or 18-month contract, you may be faced with exit fees if you want to switch before the contract term ends. Weigh up the savings and charges before making your decision.
Comments
THEY are Thieves. - Sep 27 2009 8:37PM
And who is going to pay for the sick, lame & lazy to have access to the internet? Yes, it'll be the poor, working tax payer again!
The sooner I emigrate, the better! - Sep 26 2009 1:00PM
We live approx 3 miles from a BT exchange.
The line is not unbundled and there are no plans for upgrading it. We have to have a BT line to get any sort of broadband, so offers like Primus or the recent O2 £7/p/m ( for us £17) are not an option.
We have no access to the competitive rates for phone, tv, broadband or any combination of these.
Neither do we have access to broadband speeds higher than 512Mb. Technically, the line supports 2Gb, in reality, you don't get that speed.
Any superfast broadband will be rolled out from the major cities - which already have better access than we do. We will be the last to benefit. Again.
Why should we pay more?
- Sep 25 2009 6:34PM
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