Millions of EE, Sky and Plusnet customers deemed as vulnerable will be automatically switched to cheaper broadband deals.
The three telecoms companies have agreed to move vulnerable customers who are out of contract onto cheaper deals - saving them £70 a year each.
Who is classed as ‘vulnerable’?
Those who have told their provider that they need special assistance are classed as vulnerable customers.
This could include someone with a disability or mental health problem, someone over a certain age, or someone who has experienced a change in circumstance, such as a bereavement or job loss.
Sky customers will get an annual price review, which will see them moved to the cheapest out of contract deal, whereas EE will give customers a one-off price reduction matching the price of its best deal, including those available to new users.
Customers of Plusnet who don't respond will automatically be moved to the best deal, including those available to new users.
Telecoms regulator Ofcom has said that the change will benefit around one million vulnerable out-of-contract customers by an average of around £70 each a year. However, the move over to new deals only covers broadband.
Last year, BT, TalkTalk, and Virgin Media all agreed to do the same.
‘Providers have done the right thing’
Jane Rumble, Ofcom's Director of Consumer Policy, said, "We’ve already made it easier for people to get a discount and save money. But we’re concerned some customers who find it harder to seek better deals are missing out. So, we’re pleased providers have done the right thing by cutting vulnerable customers’ bills.
“We’re now calling on them to go further and take extra steps to identify and support customers who might be vulnerable.”
If households are struggling with telecoms bills due to the coronavirus pandemic, Ofcom has also told providers to continue to offer help, such as cheaper tariffs when the customer is in debt and on a high out-of-contract tariff.