Good Things Foundation has published a report called ‘The economic impact of digital skills and inclusion in the UK’.
The report sets out the economic case for interventions to help with digital inclusion, based on analysis by Cebr (Centre for Economics and Business Research). It was commissioned by Good Things Foundation in partnership with Capita.
The report notes that “people without the access, motivation, confidence and basic digital skills to use the internet face exclusion in our modern, digital world” but highlights that digital inclusion “has increased in the last five years, accelerated in the pandemic as people went online through necessity.”
However, not everyone benefited; the report shares that although the digital divide narrowed in the past two years, it also deepened. Figures from UK Essential Digital Skills and Lloyds Banking Group 2021 indicate that the number of people aged 75 or over without “essential digital skills for life” grew by 5 percent from 2019 to 2020, and by 11 percent from 2019 to 2021. It points to factors such as lockdowns, social isolation, experiences of poor health, disruptions in service provision and low income as contributors to this.
The report states: “Evidence of what works in delivering digital inclusion in practice consistently points to the need for sustained, patient, trusted support for older people and working-age adults who are furthest away from being digitally included: finding the right hook, motivating people through quick wins, reassuring and being there when things go wrong, or to provide further support when learning to do new things online.”
The report shares how data used by Cebr came from multiple sources including Office for National Statistics, UK Essential Digital Skills data (Lloyds Banking Group with Ipsos Mori), Good Things Foundation, Cabinet Office and the Department for Transport.
Main findings included:
- There are estimated benefits to the government of £1.4 billion through efficiency savings alone, along with £483 million in increased tax revenue. Notably, the NHS is expected to save a further £899 million.
- For every £1 invested in interventions to enable digitally excluded people to build basic digital skills, £9.48 is gained throughout the economy, with a returned Net Present Value of £12.2 billion.
- Significant progress has been made throughout communities and sectors, especially in the pandemic; Cebr estimates that the number of people without basic digital skills in the UK fell from 12.4 million in 2019 to an estimated 10.6 million by the end of 2022.
- Between 2023 and 2032, an estimated 508,000 people will need annual interventions to build their digital skills. The estimated cost for providing this intervention is £1.4 billion, whilst the economic benefits accrue to £13.7 billion.
There is still a way to go, with 5.8 million people estimated to remain digitally excluded by the end of 2032.
Going into more detail on savings for the NHS, the report states that £20 million is estimated to be saved annually through people receiving digital skills support for health and wellbeing. This figure is based on groups of 508,000 learners being trained to build their digital skills each year between 2023 and 2032, and will lead to the cumulative saving of £899 million.
This saving is said to come from reduced GP appointments, with benefits arising from people receiving support in accessing online services and information, and in using digital offerings to look after their wider wellbeing. “This is especially relevant to the high proportion of adults in later life in the target group, many of whom will live alone, provide or receive informal care, and/or have a disability or health condition,” the report comments.
Among its recommendations for the future, the report emphasises the need to “build on lessons learned during the pandemic to sustain momentum” and adds that “people need a holistic digital inclusion offer which reflects their individual needs – including devices, internet data, and support. This is best delivered by trusted local organisations coordinated nationally.”
In addition, it highlights the importance of noting priority policy areas “where failure to tackle digital exclusion will block progress: the levelling up agenda and UK Shared Prosperity Fund, reducing health inequalities, sustainable inclusive growth, digital health and social care.”
It continues: “Achieving a digitally included society will not happen without strategic, coordinated action targeted at the people and places where need is greatest, taking a holistic approach.
“Digital inclusion strategies at all levels – from county councils to combined authorities – should recognise that the most challenging stretch of the country’s digital inclusion journey lies ahead. There is a risk that momentum will be lost, and lessons learned in the pandemic will be forgotten.
“The Cebr analysis provides a solid base from which local authorities, combined authorities, city regions and national governments can build their business case. Even without monetizing the wider social, health and civic benefits (such as reduced loneliness) or calculating cost savings in other sectors (like social care), the economic case for investing in digital inclusion is clear.”
To read the full report, please click here.
