Millions of homeowners could save £144 on their annual broadband bills by switching to a new tariff.
Special discounted broadband packages, known as social tariffs, are available to 4.2million households in receipt of Universal Credit.
But only 55,000 homes have taken advantage of the rates, just 1.2% of those eligible, according to regulator Ofcom.
This essentially means millions of benefits recipients are missing out on an average annual broadband saving of £144 each.
Six broadband providers – BT, Community Fibre, G.Network, Hyperoptic, KCOM and Virgin Media O2, offer at least one of the deals.
These packages are priced at between £10-£20 a month for broadband speeds ranging from 10Mbit/s to 67Mbit/s.
Now Ofcom is calling on other broadband firms to support struggling households by introducing their own social tariffs.
Networks and communications group director at Ofcom Lindsey Fussell said: “People rely on their broadband for staying in touch, working and learning from home.
“But for those who are really struggling with rising bills, every penny counts. Special discounts can make all the difference, and too many broadband firms are failing either to promote their social tariff or to offer one at all.
“We expect companies to step up support for those on low incomes, and we’ll be watching their response.”
It comes as Ofcom’s research found that around 1.1m households are struggling to afford their home broadband service.
And switching onto a social tariff could provide some financial relief for eligible households.
The regulator said: “We have seen limited evidence of providers actively promoting their social tariffs to eligible customers.
“These deals don’t generally feature in broadband advertising or price comparison website searches.”
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Matthew Upton, director of policy at Citizens Advice, said its research had shown that one in 10 people aren’t confident they’ll be able to pay their broadband bill in the next three months because of their income.
He said: “It’s been more than six months since Ofcom and the government started pushing social tariffs as an answer, but the shameful 1% take-up says it all.
“It’s people on the lowest incomes who are missing out. If firms aren’t able to show serious increases in the number of people they’re helping move to these tariffs in the next six months, the government and Ofcom must take action.”