Consumers: Vulnerable Consumers

Baroness Deech Excerpts

Tuesday 29th October 2013 Lords Chamber

Asked by

[Baroness Deech]

To ask Her Majesty’s Government what steps they are taking to protect vulnerable consumers, including the elderly and those without digital skills or broadband access, who are being charged by organisations for receiving bills and statements through the post.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Viscount Younger of Leckie) (Con)]

There are already provisions in place to protect the more vulnerable. Utility regulators take steps to assess the quality and affordability of services for customers, including the vulnerable. Should companies wish to charge more for a paper bill they must make such charges transparent in advance and ensure that they reflect only additional processing costs incurred. The Government are increasing online access by accelerating broadband rollout, promoting simple bank accounts and increasing digital skills to use electronic payments.

[Baroness Deech (CB)]

I thank the Minister for his appreciation of the problem, but is he aware that 16 million people—and 4 million disabled people—are not on the internet? Even if they were, the cost of printing and ink is such that the companies are pushing the charges back on to the consumer. Extra charges and discounts add up to quite a lot a year. Does he agree that every consumer should be able to choose a paper copy of communications and bills from media companies, energy companies and so on without being penalised? Will he press the relevant regulators—Ofcom and Ofgem—to ensure that consumers are not so penalised?

[Viscount Younger of Leckie]

Interestingly, this is not an area where regulators receive many complaints and more vulnerable customers often have access to special tariffs. However, the noble Baroness raises an interesting point. I understand, for example, that BT charges £1.50 for paper bills, which relates largely to its broadband customers who clearly have internet access and can receive bills online. We believe that the charge is reasonable, covering costs such as printing and postage. Customers using a BT basic telephone service are not charged for paper bills.