HM Government—Department for Science, Innovation and Technology—written evidence (DCL0057)

House of Lords Communications and Digital Select Committee inquiry ‘Digital exclusion and the cost of living’

Summary

Digital exclusion occurs when people lack regular access to digital technology. It is caused by various factors and barriers, including lack of access to devices, essential skills to use them, motivation to get online and trust in the safety of the online space. Digital exclusion exacerbates existing levels of inequality and creates new ones, including low educational levels, low wages, and health problems. Levels of digital exclusion are higher among certain demographics, such as older people, those out of work, and those living in economically disadvantaged areas. Digital exclusion may also lead to entrenchment of socioeconomic struggles and limited access to government and public services.

Rising living costs have also increased digital exclusion, making it more difficult for people to afford devices and internet access: 18.7 million people (35%) in the UK feel that increases in the cost of living are impacting their ability to go online.[1] This can lead to reduced access to often essential online services, lower wages, higher expenses, and reduced resilience to rising costs. 11.5 million (22%) people have already taken steps to reduce costs associated with going online, and some are seeking alternative solutions such as libraries or community centres for free access.[2]

Encouraging more people to engage and stay online requires overcoming the barriers to access, skills, motivation and trust. Digitally excluded people also require continued support to ensure that these barriers remain lowered. A range of departments support the government’s approach to removing these barriers. DSIT oversees the government’s investment in digital infrastructure and works with providers to offer social tariffs, whereas other departments such as DCMS oversee how public libraries support inclusion.

The Government has worked with the telecoms industry to improve the provision of low-cost social tariffs for those in receipt of means-tested benefits, such as Universal Credit. Following our work with industry, these offers are available in 99% of the UK from as little as £10 per month. However, we realise that more is needed to boost awareness of the support available, particularly during these difficult times. To help address this, we have launched a campaign to publicise social tariffs to eligible households and we continue to work closely with suppliers and consumer groups to amplify our messaging. Our response also highlights some of the other barriers to take-up which require further understanding.

Civil society plays an important role in addressing digital exclusion. The size of the challenge means that collaboration between the third sector, industry and government is necessary to improve digital inclusion. Additionally, the government continues to monitor digital inclusion work globally and share best practice and lessons learned with international partners to inform our policy, but as each country possesses a unique combination of causes for digital exclusion, our focus is on identifying local solutions that work for the UK.

The Department for Science, Innovation and Technology is pleased to respond to the Committee’s inquiry into digital exclusion and cost of living.

We recognise that digital skills and digital access are increasingly required to fully participate in society. We are experiencing another industrial revolution driven by computing power, portable devices, wireless data and cloud based apps and tools. Being digitally literate and included is increasingly essential.

Closing the digital divide directly supports the Government’s UK Digital Strategy, and its “vision to enable everyone, from every industry and across the UK, to benefit from all that digital innovation can offer.” Given the higher levels of digital exclusion in economically disadvantaged regions, we also recognise that addressing digital inclusion will help the government achieve its Levelling Up missions.[3]

To advance these priorities, the government is continuing to invest in digital infrastructure as well as essential digital skills. We are also encouraging telecoms providers to offer and promote low-cost social tariffs for those who may have affordability concerns, as-well-as enabling our network of libraries to serve as an alternative point of internet access with in-person support.

1.    What are the main causes of digital exclusion in the UK? What is the economic and social impact?

What are the main causes of digital exclusion in the UK?

The digital divide is the split between those who regularly use digital technology, and those who do not. While there is no universal definition, most organisations agree that individuals must overcome certain barriers to become digitally included. DSIT considers the key reasons for digital exclusion to fall under the following categories:

●        Access. People need access to affordable devices and internet connection. In turn, this requires adequate digital infrastructure to be in place.

●        Skills. People need the essential digital skills to put their devices to effective use. For the purposes of digital inclusion, this entails the most foundational skills to turn on a device and perform basic tasks, for example using email and browsing the internet.

●        Motivation. Some people are excluded simply because they do not see the benefits of being online. People in this category are likely to be the most digitally disengaged.

●        Trust/Confidence. Some people choose not to use the internet because they fear the internet comes with many risks, which they do not have the confidence to manage, like fraud or personal data breaches.

There is also a need for continued support of users against these barriers given the continuously evolving state of technology.

While those who are digitally excluded are usually excluded for more than one of these reasons (for example, inability to afford the cost of a device and consequently lacking digital skills, while a better paying job would likely require digital skills), just one of these barriers is sufficient to result in exclusion.

What is the economic and social impact?

The causes for digital exclusion are therefore often structural, and reflect deeper socio economic problems, such as low educational levels and low wages. Digital exclusion is also closely correlated with economically disadvantaged regions, and protected characteristics such as age or disability.  Older people, people out of work, refugees and those living in economically disadvantaged parts of the country are also disproportionately likely to be digitally excluded:

●        In England, 7% of the population of London can be considered as digitally excluded due to one or more factors, while 14.2% of the population of the North East of England is classified as “internet non-users” by the ONS.[4]

●        While 99% of 16-44 year olds in the UK were recent internet users, only 54% of those over 75 years old used the internet recently.[5] People with disabilities are also disproportionately likely to be digitally excluded, with 55% of those lacking foundational digital skills possessing some form of impairment.[6]

●        45% of those with at least one health impairment lack foundational digital skills, compared to 23% of those without.[7]

●        Of those with a personal income of up to £13,499, 28% did not possess foundational skills, as opposed to only 5% of those earning more than £30,000.[8]

●        44% of those with no formal qualifications possess foundational skills, compared with more 90% of those educated to degree level.[9]

●        Digitally excluded individuals are also likely to have more trouble managing their health 33% of those offline identified interacting with the NHS/healthcare provider as more difficult owing to their digital exclusion.[10]

As a result, digital exclusion creates new inequalities and exacerbates existing ones. Given the challenges that exclusion presents, improving the number of people that are digitally included will contribute to improving wellbeing for the most vulnerable people across the country. As the more lucrative jobs almost unilaterally require digital skills and access, digital exclusion makes it significantly more difficult for people to break out of unfavourable circumstances.[11]

2.    How has the rising cost of living affected digital exclusion?

a) To what extent does digital exclusion exacerbate cost of living pressures?  b) What are the long-term implications of this relationship?

To what extent does digital exclusion exacerbate cost of living pressures?

Rising living costs mean that it is becoming increasingly difficult for people to be able to afford the cost of a device or internet access, deepening levels of digital exclusion amongst particular demographics across society. The Lloyds Consumer Digital Index 2022 has identified a number of ways in which people’s digital behaviour is likely to change as a response to the increase in prices. Key indicators of the impact of cost of living pressures on the digital exclusion, as of May 2022, include:[12]

●        18.7 million people (35%) felt that the increases in cost of living were impacting their ability to go online, while 11.5 million (22%) had already taken steps to reduce costs associated with going online to help them afford other household bills.

●        9.4 million (18%) say they will have to look for other alternative solutions to connect to the Internet.

●        Amongst those who will have to look for alternative solutions to connect to the Internet, c.1.9 million (4%) anticipate becoming more reliant on libraries or community centres to use the free devices and Wi-Fi available. c.3.0 million (6%) UK adults say they will either have to give up or won’t be able to afford to start an internet or mobile data plan of their own.

Similarly, the 2022 Ofcom report on children’s media use and attitudes found a correlation between digitally excluded children and children living in financially vulnerable households.[13] Higher levels of digital inclusion are associated with higher wages and lower expenses for individuals, as well as lower public spending estimates for the public purse:

●        Higher wages. Manual workers with high levels of digital engagement earn £421 more per month than less digitally engaged peers in the same roles.[14] Roles requiring digital skills pay 29% over those roles that do not.[15]

●        Lower utility bills. People with high levels of digital engagement pay the least on their utility bills (£211 on average per month compared to £230 for those with very low engagement levels).[16]

●        Greater resilience to rising costs. Shopping and paying bills online can result in substantial cost savings (for example ability to use price comparison sites).[17]

●        Lower public spending. According to an estimate by the Good Things Foundation, HMG could save £1.4 billion through increased efficiency by minimising offline and paper-based services, £483 million in increased tax revenue. It has also been estimated that the NHS could save expected £899 million by reducing the number of in person GP appointments.[18]

Moreover, people with high digital capability are twice as likely to have improved their financial vulnerability in the last 12 months, further improving their resilience to cost of living pressures.[19] The most digitally engaged check their balance more often, save 3.5 times more money, and save 3.6 times more frequently.

What are the long-term implications of this relationship?

Over the long term, this inverse relationship between earning potential/financial literacy and digital exclusion is likely to result in an entrenchment of those who are already struggling with one or more pillars of the socioeconomic ladder (for example lack of education, skills or low wages), and are therefore most likely to be digitally excluded. As more elements of modern life - especially upskilling, education and work - continue to move online, it will become increasingly difficult to earn a living salary, gain the skills and education to move up the socioeconomic ladder, or fully participate in society without being digitally included.

For low-income households, connectivity is increasingly essential for claiming benefits and searching for work. However, as these households are at most risk of remaining digitally excluded over the long term, they will also become less able to access government and public services, including healthcare, further exacerbating the situation.

If steps are not taken to resolve the digital divide, the gap between those online and offline will also deepen. Those individuals that are already offline will become increasingly underskilled as the digital world continues to evolve making them increasingly less desirable to the modern labour market. Ultimately it becomes ever more difficult for individuals to break out of the digital exclusion cycle.

3.    What are the obstacles to greater digital inclusion? Where is policy intervention likely to have the greatest impact over the next 12 months and 5 years?

a) To what extent would these changes help unlock economic growth?

What are the obstacles to greater digital inclusion?

As noted in Question 1, encouraging more people to embrace digital opportunities requires overcoming several barriers. These barriers include having the access to devices and connectivity; having the necessary essential digital skills; trusting that the online environment is safe; and being motivated to break through these barriers and get online in the first place. Digitally excluded people also require continued support to ensure that these barriers remain lowered.

Where is policy intervention likely to have the greatest impact over the next 12 months and 5 years?

Furthering digital inclusion helps advance a number of long-term HMG policy objectives. Closing the digital divide supports the UK’s Digital Strategy and its “vision to enable everyone, from every industry and across the UK, to benefit from all that digital innovation can offer.” Increasing digital inclusion removes the need for duplicate assisted digital services & increases the efficacy of public services, supporting overall government efficiency. The correlation between digital exclusion and socioeconomically disadvantaged areas means that closing the digital divide also supports the government’s Levelling Up agenda. Digital inclusion policy supports several of the Levelling Up missions, such as increasing pay, employment and productivity; as digital skills and access are a necessity for almost all high-paying jobs, as well as increases in productivity and people’s well-being.

Policy interventions that address each of the barriers to digital inclusion, associated with the underlying foundation of ongoing support, are likely to have the greatest impact.

●        Access - Continued investment in broadband infrastructure, particularly in hard to reach areas, will be crucial to closing the digital divide in the coming years.

●        Skills - The Government recognises that digital skills are crucial to employability and participation in society. Provision of digital literacy training in school and throughout life will have the greatest impact over the next 5 years and longer term.

●        Trust - Legislating the Online Safety Bill will have a significant impact in the next 12 months in making the digital environment as safe and trustworthy as possible.

●        Motivation - The “motivation” barrier to digital inclusion is difficult for the Government to address, as it requires influencing decision-making and motivation at the individual level. This means that meaningful change to this pillar would require significant investment in affecting behavioural change. Policy intervention at the local level, including embedding digital skills training in the users’ communities, highlighting the benefits of internet usage to their unique circumstances and interest, will have the greatest impact in increasing their motivation to get online over the medium to long term.

To what extent would these changes help unlock economic growth?

Digital inclusion is also crucial for economic growth. The digital skills gap is estimated to cost the UK economy £63 billion per year in lost potential gross domestic product (GDP) and is expected to widen, resulting in a workforce inadequately equipped to meet the demands of the digital age.[20] In 2021, 92% of UK employers thought that basic digital skills were important to their employees, with 76% saying that the lack of basic digital skill availability would affect the profitability of their businesses.[21] Digitally upskilling those out of work or in search of better work is estimated to generate £2.7 billion for businesses through filling basic digital skills vacancies, £179 million in earnings from finding work, £586 million in increased earnings from those already in employment.[22]

4.    How effective are Government initiatives at addressing digital exclusion? What further action is needed, and what should be done to provide offline access to services?

How effective are Government initiatives at addressing digital exclusion?

The cross-cutting nature of digital inclusion means that relevant policies, and associated levers, sit with teams across Government. DSIT works effectively and collaboratively with the rest of Government to capitalise on different expertise and encourage all departments to consider the needs of digitally excluded people when making policy.

Initiatives that address the access barrier:

●        We are backing Project Gigabit with £5 billion, so that hard to reach communities are not left out - starting to level up now, not waiting for the end of the commercial rollout, and adding to the 600,000 rural homes and businesses already covered by gigabit with our support. This entails investment to achieve 85% gigabit-capable coverage and 95% mobile network coverage by 2025 nationwide, 5G access for majority of the population by 2027

●        Around 2,900 public libraries in England provide a trusted network of accessible locations with staff, volunteers, free DCMS-funded wifi, public PCs, and assisted digital access to a wide range of digital services. Public libraries are also not just a place to go for digital support, but increasingly libraries are lending portable devices often targeted to those more likely to be digitally disadvantaged.

●        We also note that Jobcentre Plus work coaches can provide support to eligible claimants, who are not online, with financial support to buy 6 months broadband connections. This is administered by the Department for Work & Pensions, through the Flexible Support Fund.

Initiatives that address the skills barrier:

●        To put essential digital skills for adults on an equal footing alongside English and Maths, as a third basic skill, the Department for Education introduced a new legal entitlement to study free high-quality Essential Digital Skills Qualifications (EDSQ); and from August 2023, new digital Functional Skills Qualifications (FSQ), at Entry Level 3 and Level 1.  We are already seeing an increase in the uptake of EDSQs compared to their first year of delivery (c.17k enrolments in 21/22 compared to c.5k enrolments in 2020/21), The government also supports the provision of essential digital skills training in community settings through the Adult Education Budget and through online services such as the National Careers Service Skills Toolkit.

●        Out of work claimants can be mandated as part of their Claimant Commitment to basic foundation digital skills provision where the work coach considers this will progress the claimants labour market journey. To support adults who are online, but lack the essential digital skills for work, the Department for Work and Pensions is working to develop a framework to effectively identify claimants’ digital skills level, and where appropriate refer claimants to essential digital skills qualifications.

●        Recent survey results from lorensbergs indicate how public libraries are instrumental in helping users develop digital skills. Based on the responses received from library services the results indicate that in 75% of libraries, users access computers and receive staff help to find new jobs on all or most days, approximately half of libraries are seeing an increase in requests for digital skills support and around 50% give time and resource every day to helping users develop their digital skills.

Initiatives that address the trust barrier:

●        The government has taken legislative steps to make the online environment safer and more trustworthy by legislating the Online Safety Bill. This is a major milestone in the government’s mission to make the UK the safest place in the world to be online, and will encourage more people to be comfortable on the internet. The Bill introduces new rules for firms which host user-generated content, i.e. those which allow users to post their own content online or interact with each other, and for search engines, which will have tailored duties focussed on minimising the presentation of harmful search results to users.

●        For many people, the reluctance to get online comes from a lack of confidence or not knowing where to start. Essential skills courses delivered with support from trained staff or volunteers, such as in public libraries, can provide library users with in-person support in using digital applications and services.

What should be done to provide offline access to services?

As services continue to move online, many public service providers, including a number of Departments, have adopted a “digital first” approach, under which a non-digital route to access their service or goods is either not offered at all, or is offered in a significantly more cumbersome way. This further increases the risks of marginalisation for digitally excluded people, who are consequently unable to take full advantage of both private and public services. Some providers, in particular in the public sector, attempt to close the gap by providing a parallel, “assisted digital” provision, which allows for communication over-the-phone or via paper forms. However, assisted digital options are more often than not significantly more cumbersome and inferior to the standard, digital offering, which discourages users.  

Some specific challenges include ambitions to move towards a cashless society, which risks financially disenfranchising the digitally excluded, particularly older people; barriers faced in requesting passports or other official documents; or difficulties associated with applying for benefits.

Where possible, the Government’s ambition is therefore to provide support (covering all the barriers to digital inclusion: access, skills, trust, and motivation) to use online services, rather than providing second-tier offline alternatives.

5.    How well are existing industry initiatives (for example cheaper internet tariffs) addressing digital exclusion? How could they be enhanced?

The Government recognises that the affordability of devices and connectivity services is a key component of digital inclusion. We understand that the global rise in the cost of living has left many families facing a squeeze on their monthly household budgets. For those who may be digitally excluded due to cost, the rise in cost of living will have made their situation more acute.

Social tariffs

To support those on low-incomes to stay connected, the Government has worked closely with the telecoms industry to ensure availability and the provision of low-cost, high-quality fixed and mobile social tariffs in the market. These offers are available in 99% of the UK, from a range of providers including BT, Three, Sky, Vodafone and Virgin Media O2 as well as other suppliers[23]. Social tariffs are available to those claiming Universal Credit and other means-tested benefits, starting from £10pm.

However, we recognise that more is needed by industry and Government to ensure that households are aware of the support available. In September 2022, Ofcom released figures which showed that between April - August just 3.2% of the c.5 million eligible, (136,000 households), had taken up a social tariff offer. Similarly, Ofcom reported that awareness of social tariffs amongst eligible groups was also low at just 31%.

In response to Ofcom’s Report, in November the then Minister for Media, Data and Digital Infrastructure, Julia Lopez, and the Minister for Social Mobility, Youth and Progression Mims Davies chaired a roundtable of broadband and mobile sector CEOs and leaders from consumer groups to discuss the barriers to take up.

Awareness of social tariffs 

In November, the DCMS - as part of Help for Households - launched a UK-wide campaign to publicise social tariffs among eligible households.  The campaign uses multiple channels to reach individuals; and partners with a range of stakeholders - including other Government departments, job centres, libraries, local authorities, consumer groups and internet service providers - to maximise the reach of our messaging.

We are continuing to work with the telecoms industry to encourage them to do more to raise awareness of their social tariffs to their customers. To support this, in August 2022 the DWP launched a new, digital verification API (Application Programme Interface), which allows operators to verify applicants’ eligibility for a social tariff in near real time. Sky and Virgin Media O2 are now live on the system, and we expect more providers will be joining shortly. We have made clear to industry that we expect them to do more to publicise their social tariffs, now that the API is available.

We continue to work closely with Ofcom, who are responsible for monitoring affordability in the market, through regular bilateral engagement on matters relating to affordability.

Other challenges facing take-up of social tariffs

Ofcom’s figures show that only 1 in 10 of people who know about a social tariff go on to take up an offer. This suggests that there exists other, more complex, reasons which are influencing take-up of social tariffs.

[Please note that we have not ordered or numbered the following barriers in terms of priority]

1. Public misconceptions about quality of social tariffs

Ofcom’s Affordability Report in September showed a level of public misunderstanding of social tariffs, with 42% of eligible consumers concerned that the low price of a social tariff may also represent a lower quality, slower or less reliable service. In addition, Ofcom research has also shown that 62% households require at least a superfast broadband connection at home, and 38% of households do not.

This perception is contrary to the decent speeds currently offered by many suppliers. Almost all social tariffs currently provide at least a superfast connection, with download speeds of 25mbps or more. This allows households to stream, email and work across multiple devices. 

Our communications campaign has sought to address these misconceptions specifically.

2. Concerns about the switching process

We recognise that many households enter into 12, 24 or 36 month contracts with their telecoms supplier - which may include an early-termination charge. This charge may deter people from switching to a social tariff.

The government has worked closely with operators on this issue, and as have noted above, we have secured public commitments to allow households to switch, free-of-charge, onto a cheaper commercial package or a social tariff. Through our public messaging, we are urging customers to contact their supplier for support.

3. Competitive commercial services and other industry initiatives

Some households may be choosing to opt for a commercial package rather than a social tariff due to competitive pricing in the market. The average household expenditure on telecoms remains low compared to spend on other utilities at  approximately 4% of their households' budgets on telecom services. In addition, Ofcom’s affordability report found only 11% of eligible households were reporting an affordability issue with their broadband service.

There is considerable variation between households on Universal Credit and other means-tested benefits, both in terms of income and connectivity needs. This means that for some, commercial offers, which allow people to bundle services, may be more appropriate, and overall affordable, than a standalone social tariff because it allows consumers to bundle different services, such as mobile, broadband and/or landline, with the same operator for prices close to that of a social tariff.

It is also important to acknowledge other industry/third sector initiatives including Vodafone's Everyone Connected scheme and The National Databank (which is supported by Three, Virgin Media O2 and Vodafone) which offer free mobile data within local communities.

The Government continues to recognise the importance of fast, reliable and resilient connectivity, and the need to ensure that as many people as possible are able to take up and use services. Social tariffs are an important safety net for those struggling with the cost of living, and we continue to work with Ofcom, industry, consumer groups to ensure more people know about the help available.

Industry support to access devices and data

There are a number of industry initiatives that support digitally excluded people to get online, for example through the provision of devices and data.

We regularly engage with big tech companies such as Amazon who facilitated the donation of more than 15 million tech products to charities across the UK. Telecoms providers including BT, O2 and others have pledged donations and data to charities to help disadvantaged people to access connectivity, with O2 committing over 61 million GB of O2 data to data banks by the end of 2025. Deloitte donated nearly 7,000 reconditioned laptops to schools, charities and community groups across the UK.

Further, Dell launched ‘Dell Donate to Educate’ in September 2021 which supports children with the right access to technology at school and at home, with over £2 million invested to provide 7,000 Dell laptops and tech packages. This programme was launched through the former government-led Digital Inclusion Impact Group, a coalition of third sector and industry organisations dedicated to tackling digital exclusion, under the leadership of DCMS.

This is an example of how existing industry initiatives to tackle digital exclusion can be enhanced through the Government's role in convening, amplifying and complementing private and third sector provision.

Essential digital skills programmes

There are a significant amount of essential digital skills related resources available from simple free video tutorials through to programmes designed to help individuals and small businesses make the most of digital technology. The National Careers Service Skills Toolkit includes links to some of the best including those from other sectors such as Learn My Way and Make it Click from the Good Things Foundation and The Open University course Digital skills: succeeding in a digital world. These are complemented by essential skills resources provided by companies in the private sector, for example:

●        Accenture & Future Learn provide free courses on digital skills for work & life.

●        Barclays Digital Wings offers free essential digital skills and Barclays Digital Eagles provide a range of services including digital champions, live webinars and a learning platform for free and it’s open to anyone.

●        Lloyds Bank Academy provides free online essential lessons to help people get started online.

●        Microsoft & LinkedIn learning provide free courses on working with computers.

●        Sky Up Academy – Sky’s ‘Sky Up’ programme helps to address digital equity through onsite, online and on tour instructive experiences. Sky Hubs provide free internet access and digital skills to communities, with a particular focus on supporting under 25s in low-income areas and over 65s. Sky Hubs are in partnership with local charities in the communities in which they exist. Sky have confirmed that an additional Hubs will be launched this year.

These programmes are continuously being enhanced, updated and promoted to more people. Driving up awareness of what is available and helping people to find the best resources for them represents a significant opportunity.

6.    How effective is civil society at supporting digital inclusion? How could this work be enhanced, and what is the appropriate balance between civil society and Government intervention?

How effective is civil society at supporting digital inclusion?

Local third sector organisations are important in addressing digital exclusion owing to their understanding of the specific needs of their communities and knowledge of how best to reach digitally excluded people. There is broad agreement that the best interventions to advance digital inclusion are tailored to local needs, and delivered in community. This is particularly important because many of the digitally excluded are vulnerable in other more complex ways, including social exclusion and poverty, and face various educational and social barriers to learning.

For example, the Good Things Foundation delivers the National Databank which provides free data and sim cards, while the National Device Bank collects used devices and donates them to people in need.

However, the large number of generally small, highly local organisations operating in this space means that there is little synergy or signposting of available resources to digitally excluded individuals. As a result, resources are not used as effectively as they could be, and many existing initiatives are marred with low levels of awareness.

Further, solutions require close collaboration with industry, which has a stake in furthering the spread of digital technology and resource to provide devices, connectivity or other support, and central government, which is best placed to serve as a convenor between diverse organisations, sharing of best practice and setting of overall strategy.

How could this work be enhanced, and what is the appropriate balance between civil society and Government intervention?

There is widespread recognition that the size of the challenge means that Government cannot tackle the digital divide on its own. DSIT recognises the importance and values of the involvement of civil society and the third sector in supporting digital inclusion, whether their independent initiatives, or as delivery partners for HMG initiatives.

For example, in February 2021, DCMS in partnership with charities AbilityNet and Good Things Foundation launched the £2.5 million Digital Lifeline Fund. The Fund aimed to reduce the digital exclusion of people with learning disabilities by providing free devices, data and digital support to over 5000 people with learning disabilities who can't afford to get online.

Nevertheless, there is still no widely accepted definition of digital exclusion, or universally used benchmark for measuring progress. This is particularly important when we consider individuals who, for example, possess the necessary essential skills, but can access a device only a few times a week, or those with a device and some skills but without the confidence to use the device independently. A robust, widely accepted methodology for measuring and defining exclusion would therefore be a useful step in convening the efforts of industry, the third sector and Government.

7.    What lessons can the UK learn from abroad?

The UK’s digital economy is world-leading. The digital sector contributed nearly £151 billion to the economy in 2019. We are enabling better access to the benefits of digital technology for everyone across the whole of the UK, improving levels of digital exclusion through better connectivity, digital skills training and leading the way globally with legislation that will mitigate online harms and make the internet a safer place via the Online Safety Bill. Thanks to our policies to encourage competition and investment, industry is investing over £30 billion in one of the fastest broadband rollouts in Europe. By 2025, we will have achieved at least 85% coverage nationwide of gigabit broadband through the Project Gigabit programme, increasing to at least 99% gigabit coverage by 2030.

As outlined in this response, the UK’s approach to tackling digital exclusion centres around four key pillars - access, skills, motivation and trust/confidence, as well as ongoing support. However, we recognise that digital inclusion is a broad and cross-cutting policy that is an inherent element of a large number of Government priorities across education, employment, health and Levelling Up. As a result, DSIT’s role has focused on convening and coordinating inclusion policy across Government, encouraging all departments to consider the needs of the digitally excluded in policy making.

Digital exclusion is a global challenge however it lacks consistent definitions or methodologies for measuring it. Nevertheless, as the UK continues to develop its approach to closing the digital divide, it is crucial that we share best practice and lessons learned with international partners to inform our policy.

Other world-leading digital economies such as the US, Canada, Australia and many countries in the EU, similarly focus their strategic efforts to tackling digital exclusion by improving access to affordable connectivity. For example, the Canadian Government has recently launched a broadband subsidy scheme ‘Connecting Families’. The programme has partnered with 14 internet service providers across the country who are voluntarily contributing to the initiative by offering $20 a month broadband connections. In the UK, low-cost social tariffs are available in 99% of the UK from providers including BT, Virgin Media 02, Sky, Three, EE, Vodafone and other suppliers.

We are continuing to monitor digital inclusion work globally but as each country has a unique blend of the reasons for digital exclusion, as well as structural differences to factors such as infrastructure, education, finance and healthcare systems, the focus should be on accelerating projects that are working in the UK.

7 March 2023

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