Virgin Media O2 launches £10 SIM deal for anyone on low income, but it's not the cheapest option

Virgin Media O2 has announced an affordable new SIM-only deal designed to help those on lower incomes

PRESS ASSOCIATION
Aaron Brown

By Aaron Brown


Published: 20/08/2024

- 04:25

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All-new O2 Essential Plan is designed to help those struggling to make ends meet

Virgin Media O2 has debuted an affordable new mobile plan designed to help people on low incomes stay connected. Dubbed the O2 Essential Plan, it costs £10 a month and offers 10GB of mobile internet, unlimited calls and text messages.

Created for those who receive a range of benefits, the O2 Essential Plan is available as a 30-day rolling contract with no activation or early exit fees. Virgin Media O2 will not increase prices on this SIM-only plan each year in contrast to its other SIM, full-fibre broadband, and pay-TV plans.

O2 won't charge you extra to use your 10GB allowance of mobile data in mainland Europe, either. That's something that you won't get from the three other most popular mobile networks in the UK.

However, the affordable O2 Essential Plan isn't available to everyone.

It's only on offer to those receiving income-based Employment and Support Allowance, income-based Jobseeker’s Allowance, Income Support, Pension Credit or Universal Credit.

According to Ofcom figures, around 2.6 million UK households find it difficult to afford their mobile phone service, and previous research has shown large numbers of people suffering from digital exclusion, where their inability to access mobile connectivity cuts them off from key day-to-day services that are increasingly moving online, including healthcare and banking platforms.

Virgin Media O2 Chief Commercial Officer Christian Hindennach said: "Virgin Media O2 is proud to offer a range of comprehensive measures to help people on low incomes to get online and stay in touch with loved ones.

“While we know mobile connectivity in the UK is already very affordable, the launch of the O2 Essential Plan builds on our wide range of existing support for people experiencing financial difficulties.

"This includes our broadband plan for people receiving support payments, the National Databank providing free mobile data for people in need, and our Community Calling scheme which rehomes smartphones with people who need them."

While it's commendable to see Virgin Media O2 launch a new product specifically for those who are struggling to make ends meet, the O2 Essential Plan isn't necessarily the most affordable plan out there.

Giffgaff, a popular virtual mobile network that uses O2's network of masts across the UK, offers a 20GB mobile data allowance, unlimited calls and text messages for just £10 per month.

Available on a rolling 30-day contract — just like the O2 Essential Plan — this budget SIM deal is available to anyone with no need to prove that you're on Jobseeker’s Allowance, Income Support, or any other type of unemployment benefit.

Vodafone offers 30GB of mobile data for just £8 per month with its Vodafone Basics SIM-only deal. Like both of the other options in this article, Vodafone includes unlimited text messages and calls.

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However, it doesn't offer quite the same level of flexibility as you'll need to sign up for a 12-month minimum term, so this might not be suitable for everyone. It's worth noting that you'll save £24 with this Vodafone offer compared to the Virgin Media O2 and Giffgaff deals provided you keep them all for a year.

Only you'll be able to determine which SIM-only deal is the best choice for your circumstances, but whatever you do, don't stick with the same provider for years without renegotiating your contract as you'll most likely find yourself overpaying for smaller allowances or slower mobile data speeds.

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