Telecoms firms must do more to help customers struggling to pay their bills, Ofcom has said.

Companies will be expected to offer special discounted packages to customers who are financially vulnerable, known as social tariffs, and proactively signpost other support such as payment deferrals or payment plans under the regulator’s proposals.

Recent Ofcom research found that millions of families could save an average of £144 each year on their broadband bill.

Providers should also rotate between writing, emailing, phoning and texting customers who are in debt to increase their chances of reaching them and provide clear information about free debt advice.

Ofcom has also told firms to avoid restricting or disconnecting services to those who are particularly reliant on them to push them into paying outstanding bills.

Around 1.1 million households (5%) are struggling to afford their broadband, rising to around one in 10 among the lowest-income households, the regulator said.

It noted that affordability problems were only likely to worsen this year because of the cost-of-living crisis.

Ofcom’s network and communications group director Lindsey Fussell said: “Phone and broadband are vital to our lives, but many households’ budgets are being seriously squeezed. So it’s crucial that people who are struggling to afford their bills get the support they need.

“We’ve set out clear expectations on the steps providers should take, and we’ll be keeping a close eye on firms to make sure they’re treating customers fairly.”

Ernest Doku, telecoms spokesman at Uswitch.com, said: “As broadband is an essential utility, many providers have packages available for financially vulnerable customers, but our research found that two-thirds of these customers (65%) don’t know these options are available.

“Broadband providers must do more to help people in need. For those struggling to find work, internet access is vital and being threatened with disconnection can cause huge stress.

“Social tariffs aren’t the only way broadband customers can save money. Seven million households in Britain are overpaying by £162 a year because they don’t realise they are out of contract on their deal, despite the looming price rises.”