News

New research from LINK, the UK’s cash access and ATM network, shows digital exclusion remains a major and stubborn problem across the country leading to painful real-world consequences across society.

The research forms part of a new report called “Is the UK really ready to go digital?” and builds on a year long digital inclusion pilot in Wales sponsored by LINK to understand how online capabilities can be improved at a local level.

Digital exclusion as defined by Ofcom is a lack of access to reliable broadband as well as having trouble affording broadband or other internet enabled devices. But it also applies to broader skills, exclusion and a lack of expertise and ability to safely navigate the online environment.

The new data shows nearly one-in-four (24%) adults classify themselves as digitally excluded in some form. This is highest among 18 - 24 year olds (42%) followed by those aged 75 and over (30%). While at first glance this may appear counter-intuitive, a key driver is the lack of access to reliable broadband and internet enabled devices that drives much of this perceived exclusion.

Income is the largest factor with 44% of adults with a household income of under £10,000 identifying as digitally excluded. Digital exclusion was also higher among British Asians (36%) and Black British (31%) compared to White British (23%).

The research also looked at broader confidence, preference for digital and how to improve digital capabilities. The other key headlines include:

•  Over one-quarter (27%) of UK adults favour a digital approach wherever possible with a further 38% tending to prefer a digital approach. Over one-in-ten (11%) tend to favour an offline approach with 5% using offline whenever possible.
• Confidence for completing most ‘everyday tasks’ digitally was broadly quite high for respondents. 96% were confident in shopping for goods and services as well as 93% accessing government services. While only 68% said they were confident for paying for car parks digitally and 61% in applying for a mortgage. The most popular task done ‘offline’ was booking a healthcare appointment (51%).
• Digital anxiety is especially problematic among 18-24 year olds with more of this age group stating higher levels of confusion, confidence and a basic lack of understanding for completing everyday tasks such as online banking. Despite the perception for being digital natives and spending more time online, 18% describe themselves as ‘technophobes’.
• 50% of UK adults feel confident enough to say that they actively choose to do all their banking tasks online. However, nearly one-fifth (18%) of people, while doing all their banking online, would prefer to bank in-person were that to be an option.
• The most popular policies to improve digital inclusion are to ensure better broadband services in poorly connected areas, strengthening community led interventions to build digital skills and incentivising private companies to securely refurbish and donate old devices to digital inclusion schemes.

Alongside its work to protect access to cash across the country, quite often in the most deprived part of the country, over the past year, LINK funded a digital inclusion pilot in Rhonda in South Wales to test ways to improve the digital capabilities of the local population. The project reached 150 residents across all groups, aiming to support individuals in improving their digital opportunities for friendship, shopping, work, money management, health, education, and communication. The support was provided by trainers through one-on-one sessions to whole day events giving access to free SIMs or loan of laptops and tablets. Some of the individual results have been hugely positive with the biggest outcome that more people are able and confident to complete key life activities online. However, not everyone can be helped and scaling this level of tailored support is also very hard and expensive.

The research and the outcomes of the pilot to date shows that much can be done to improve the current position and this should be addressed urgently and more effectively on a national scale.  But it also shows that even then, to some extent, digital exclusion will persist and its vital to maintain good face to face services especially for those things which are essential for people to live their lives.

Adrian Roberts, Deputy CEO, LINK: “Digital inclusion matters. It affects career progression, social interactions and mental wellbeing, as well as productivity and economic prosperity. However, given the relentless speed of technological development, no matter what we do, digital exclusion will continue to exist. It’s not just about age and affordability, there is no guarantee that having the right skills today will mean having the right skills tomorrow. There is no single solution to addressing digital exclusion.

“What is certain is that we must not drift into a future where we have a two tiered society with a digital world for the young and wealthy and a non-digital world for the older and poorer, where prices are higher and those least able to afford pay the most exacerbated by key services designed to be accessed digitally first.

“As we learned from our digital pilot in Wales, much can be done through targeted interventions to make a difference and this work must continue. What is also needed is a national approach that joins up and scales up the various local initiatives that already exist to really drive down digital exclusion across the country.

“What’s positive is that people generally don’t want an exclusively digital society, they want choice: cash and online payments, high streets and online shopping. They also want the security of knowing there is a back-up when the technology fails. For example, at LINK, we know that more people are choosing to pay and bank digitally. Yet, there is still huge demand to protect cash access on local high streets through new developments such as banking hubs, which allow us to bridge the physical and digital divide.

The reality is, we are not ready to be fully digital today, and we probably never will be.”