Broadband - Business, Innovation and Skills Committee Contents


6 Digital Exclusion

94.  Digital Exclusion is the term used to describe the experience of those socio-economic groups who, for whatever reason, are unable to access the internet and the resources it has to offer. This may be the result of poverty or computer illiteracy. It also includes those individuals who do not want (or do not know they want) access to the internet.[116] To address these issues the Government has established two programmes, the Home Access Programme and the Digital Inclusion Task Force.

95.  The Digital Inclusion Task Force, chaired by Martha Lane Fox, is the Government's initiative to increase participation among those groups most likely to be "digitally excluded". The Task Force has a budget of £12 million, for a two-year period, and is focusing on the following activities:

  • to support and challenge government, industry and the third sector on programme development and delivery;
  • to use Race Online 2012 to shine a light on partner activities and provide an intelligent hub of information and resources; and
  • to join and leverage new and existing activities to ensure 'face to face' support is available to all socially and digitally excluded adults.[117]

96.  A study commissioned by the Government's Digital Inclusion Task Force summarised the current situation in the following terms:

Overall, levels of digital exclusion have declined steadily in recent years although a significant proportion of the population remains digitally excluded. In 2009, 10.2 million adults (21% of the UK population) had never accessed the internet and a further 2.0 million had not used it for 3 months: 7.8 million households (30% of those in the UK) had no internet connection at home.[118]

97.  Despite a steady decline in digital exclusion, the issue is becoming one of increasing importance. Digital Britain highlights the fact that it is the Government's intention to deliver more public services online; that the best priced utilities, services and goods now appear in internet-only offers; and that there is an increased requirement for computer and internet literacy when looking for employment.[119]

98.  To date the most substantial report to come out of the task force is a commissioned study from PricewaterhouseCoopers. The key findings of that Report were:

  • households without an internet connection are missing out on savings of £560 per annum in shopping and paying bills online;
  • if the 1.6 million children whose families are not online got a home internet connection it would increase their lifetime earnings by around £1 billion;
  • unemployed people could increase their chances of finding a job if they had internet access;
  • people with good computer skills earn 3% to 10% more than those without; and
  • each contact with the Government made online as opposed to telephone or face to face could save between £3.30 to £12.00.[120]

99.  The Report highlights the many potential gains that can be made by having access to the Internet. It is therefore unfortunate that the Government's proposals and initiatives do not give sufficient weight to these benefits. While we support the aims and objectives of the Task Force, its funding appears insufficient. In approximate terms, it will spend £1 per year on each of the four million people it has identified as being within the most disadvantaged groups, while the 50 pence levy would impose a charge of £6 per year on that same group.

100.  We strongly support the aims and objectives of the Digital Inclusion Task Force. However, we are concerned that the drive towards NGA roll-out could be at the expense of the Digital Inclusion agenda. The contrast between the method and funding of NGA and the sums available to address the problems of digital exclusion only serves to highlight this concern. The digital inclusion task force will spend £1 per year on each of the four million people it has identified as being within the most disadvantaged groups, while the 50 pence levy will impose a charge of £6 per year on that same group. The levy will last until at least 2017 but the task force will finish its work in 2012.

101.  We recommend that greater attention and resources be given to digital inclusion given the proven social and economic benefits to the individual and the cost saving benefits to the Government. We believe that digital inclusion should take priority over Next Generation Access at a time of great stringency in public expenditure.

The Home Access Programme

102.   In February 2009, the Government began a pilot scheme across Oldham and Suffolk local authorities which targeted families with children who were unable to afford home access to the internet. A grant is available for those eligible to buy a computer, and get internet access as well as service support.[121] Digital Britain declared the pilot scheme a success and explained that the programme would be rolled-out in Autumn 2009.[122] According to Digital Britain, the national roll-out would help "promote the benefits of home access to families and give direct financial support to around 330,000 of the most disadvantaged learners whose families meet the eligibility criteria".[123]

103.  The programme was recently given favourable coverage in the press:

The Home Access scheme is designed to encourage low-income families with children at key stages 2 and 3 to apply for a one-off, £500 grant to pay for a computer and a 12-month subscription to the internet. If the family receives free school meals they can apply for a single-use debit card loaded with £500 worth of credit. Families then have a choice of retailers—including Comet and Curry's—to buy from. [The scheme] hopes to give out 270,000 grants and reach as many as half a million children. Results from the pilots are promising: more than 9,000 families participated, which was nearly 90% of the target group.[124]

104.  The programme has a budget of £300 million. These funds will remove significant barriers of the one-time cost of purchasing a computer and subscription, for a twelve month period, to a broadband service. We congratulate the Government on the Home Access Programme which we believe shows early signs of success. We therefore welcome its extension as a national programme. We recommend that the programme be used to educate and inform the whole household on the benefits of internet use and computer literacy. Furthermore, we call for early research on the effectiveness of its roll-out to ensure that its early promise is maintained. This is the sort of intervention the Government is well placed to make in support of the objectives of both Universal Service Commitment and the Digital Inclusion Task Force.


116   Department for Business, Innovation and Skill, Digital Britain, June 2009, p30 Back

117   www.raceonline2012.org, December 2009 Back

118   PricewaterhouseCoopers, Champion for Digital Inclusion, the Economic case for Digital Inclusion, October 2009, p 3  Back

119   Department for Business, Innovation and Skill, Digital Britain, June 2009, p30-33 Back

120   Price Waterhouse Cooper, Champion for Digital Inclusion, the Economic case for Digital Inclusion, October 2009, p 2 Back

121   www.homeaccess.org.uk Back

122   Department for Business, Innovation and Skills, Digital Britain, June 2009, p 177 Back

123   Department for Business, Innovation and Skills, Digital Britain, June 2009, p 177 Back

124   "Home access - funding scheme brings equality online", The Guardian, 8 December 2009 Back


 
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