Phone tax puts our poorest on receiving end
Chris Stephens was furious to learn that disabled people who call a hotline to appeal against benefits sanctions pay premium rates while top earners get charged a lesser rate for calling the Government’s High Net Worth Unit. Here, the Glasgow South West M
AS AN MP, I often encounter examples of unfairness and injustice.
People seem to be punished for finding themselves in need. Rules and regulations harm rather than help the average citizen who only wants what they are entitled to.
Part of my job is to help people through obstacles in the system – but it is equally vital that MPs try to remove the barriers altogether.
Incredibly, the richest in society seeking information from the taxman about their high net worth status can access low-cost or free helplines – but the poorest face sky-high phone bills when trying to claim the benefits they are due.
I have raised this issue in Parliament, tackling Theresa May directly at PMQs, and on Tuesday I am introducing a Bill to help eliminate this “telephone tax” placed on those most in need.
Far from working to create a fairer society, the Government have so far responded poorly to the campaign to remove helpline charges of up to 55p a minute.
Anyone who has seen I, Daniel Blake should know that the film is more a documentary than a story.
I believe the benefits system, changed by successive UK Governments, is designed to punish claimants with legislation that makes it hard for people to cope when they are struggling.
That push over the edge into poverty should not be managed by the DWP and other agencies who charge people for claiming.
When the safety net becomes a trap, it’s time to ask what sort of government boosts profits for phone companies on the backs of the poor?
While the initial inquiry to the DWP is free, follow-up calls about a claim, sanctions or to report that a benefit has not been paid on time all cost money. Constituents tell me these calls can be very expensive (up to £16 a time), and long waiting times to speak to an adviser bump up the costs even more.
Other examples of services that charge are the child maintenance helpline and Home Office inquiries about spousal visas (£1.37 a minute over and above network charges).
Network charges themselves work against the most vulnerable. Although 0345 numbers are usually included in mobile phone contracts, those on low incomes are more likely to have a Pay As You Go deal.
This means poorer households and OAPs can be charged from 10p to 55p a minute.
When I’ve queried the costs of calling, the UK minister always makes mention of online access for inquiries and claims.
That’s fine if you can afford broadband, live in an area with good connectivity and are computer literate. If not, it’s just another barrier to stop people getting the support they need.
Not only that, but there isn’t enough internet capacity in our libraries and community centres for everyone to get access online.
The Commons social security committee recently recommended that all calls to the DWP should be free via 0800 numbers.
The Government say this will cost £7million – not a lot in the context of the overall budget.
The roll-out of universal credit threatens to extend call times and costs due to the very nature of the benefit, which will require frequent contact from the claimant to update the DWP on circumstances.
A ministerial written answer last year revealed that the average call to the universal credit helpline takes seven minutes 29 seconds – adding up to £4.40 at one major phone operator’s rates.
I call for the Government to act on the recommendations of the social security advisory committee – including a call-back system for short-term aid to vulnerable customers and advising them of potential wait times.
I also ask the Government to review the provision of computers capable of being used by the public in every local area, publish the results and make arrangements for digitally disadvantaged claimant to be able to call a dedicated phone line free of charge.
I believe this should be adopted as best practice across all Government services as over-thetop charging for information is intrinsically unfair and excludes far too many of our citizens today.
What sort of government boosts profit for phone companies on the backs of the poor?