Virgin Media O2 has announced a new £10 per month mobile plan on the O2 network that offers unlimited calls and texts plus 10GB of data to anyone in the UK on low incomes and who currently receive certain benefit payments.

Mobile contract prices can get expensive quickly but if you already have a smartphone or regular mobile phone and you pay more than £10, you can choose to switch to the O2 Essential Plan, which is available for new and existing O2 customers who are currently receiving either the Income-based Employment Support Allowance (I-ESA), Income-based Jobseekers Allowance (I-JSA), Income Support (IS), Pension Credit (PC) or Universal Credit (UC).

The plan is a 30-day rolling contract, which means you can cancel at any time and are not signed up to pay for months on end before you can leave. You’ll also be able to access O2 Priority, the network’s loyalty programme that gives early access to concert tickets and other benefits.

Virgin Media O2 is also promising that there will be no price rises on the Essential Plan, suggesting it will stay at £10 per month indefinitely.

“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,” said Christian Hindennach, Chief Commercial Officer at Virgin Media O2.

“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.”

Virgin Media said this new plan is part of the firm’s work to improve so-called digital inclusion in the UK, and adds to its involvement in the National Databank, which describes itself as “a foodbank but for mobile data”.

The Essential Plan is available now and you can apply for a SIM card here. You can also enquire if you are already an O2 customer by calling 202 from your O2 mobile. If you’re a new customer, you can call 03448 090 202. You’ll need to provide your name, postcode and date of birth so O2 can confirm your eligibility for the plan with the Department for Work and Pensions.

O2’s pay as you go £10 package usually only gives you 8GB data, so you’re gaining a bit of extra mobile internet access every month if you can sign up to the Essential Plan.

But if you want as much mobile data as you can get, there are other deals out there that offer more. Giffgaff, which runs on O2’s network but is a separate company, offers 20GB monthly data with unlimited calls and texts for £10 per month - and it is available to anyone on a cancel-anytime rolling monthly contract.