News and Insights
Digital Exclusion and the Cost-of-Living Crisis
18/03/2023
With rising living costs, households in the UK struggle to afford internet connectivity. According to recent research, two million households in the UK struggle to pay for internet bills, and 14 million people are unable to interact with online services due to low digital capability.[1] Given the clear links between socio-economic poverty and digital exclusion, these figures are alarming.
According to the Digital Poverty Alliance, one in three UK adults have cut back their spending on digital access, with some switching to cheaper broadband deals and others downgrading their devices (laptops and phones).[2] As Helen Milner, the Chief Executive of the Good Things Foundation, warns: “There are millions of people right now who are considering turning off their broadband and/or their mobile contract because they can't afford it because of the cost of living crisis. That's a massive concern.”[3]
Indeed, digital exclusion risks exacerbating underlying inequalities. A lack of digital skills makes it more difficult for people to find cheaper deals, access valuable public services, seek financial help and guidance, access health services, apply for jobs and engage in training opportunities. Those that are already suffering from socio-economic exclusion will be especially impacted by this situation, including older people, people in lower income groups, BAME communities, and disabled people. Yet, it should be noted that the cost-of-living crisis risks pushing those that were not previously affected by the digital divide into digital exclusion.[4]
The digital divide was brought into focus due to the devastating effects of the COVID-19 pandemic, and made more obvious the socio-economic challenges of having low level digital skills when navigating online services. The cost-of-living crisis is now adding a further layer to this problem, with many people resorting to downgrading broadband subscriptions and devices.
Notable organisations have proposed a variety of measures to mitigate this growing problem:
1) Ofcom has urged major broadband providers to introduce social tariffs; namely, cheaper broadband deals and phone packages for people claiming Universal Credit, Pension Credit, and other forms of benefits. See Ofcom’s list here:
https://www.ofcom.org.uk/phones-telecoms-and-internet/advice-for-consumers/costs-and-billing/social-tariffs.
2) Make people aware of social tariffs. The Good Things Foundation’s guide “Supporting People with Data Connectivity” encourages charities and community groups to raise awareness about social tariffs and cheaper broadband deals.[5]
3) Address the lack of digital literacy in vulnerable and lower income groups.[6]
4) Develop an understanding of Minimum Digital Living Standard, and what “households need to be digitally included.”[7] Such a benchmark would help in clarifying what is needed to feel connected and to identify when someone is at risk of being digitally excluded.
References
[2] Digital Poverty Alliance. 2022. Currys Raises Over £70,000 to Tackle Digital Poverty as New Study Reveals Digital Access Worsening. https://digitalpovertyalliance.org/partner/currys-raises-over-70000-tackle-digital-poverty-new-study-reveals-digital-access-worsening/
[3] BBC Yorkshire. 2023. Leeds heads drive to ensure 'no-one left behind' in cost of living crisis. https://www.bbc.co.uk/news/uk-england-leeds-64038396
[4] The Big Issue. 2023. From online deals to job searches: How digital exclusion makes the cost of living even higher. https://www.bigissue.com/news/social-justice/digital-exclusion-cost-of-living-crisis/
[5] The Good Things Foundation. 2023. Supporting people with data connectivity (Broadband and mobile data). Available at: https://www.goodthingsfoundation.org/wp-content/uploads/2022/07/Supporting-people-with-connectivity.pdf
[6] Digital Inclusion Alliance Wales. 2023. Written Evidence (DCL0046). https://committees.parliament.uk/writtenevidence/119054/html/
[7] University of Liverpool. 2023. Minimum Digital Living Standard launched to reduce digital exclusion in UK households with children.
https://news.liverpool.ac.uk/2023/03/15/minimum-digital-living-standard-launched-to-reduce-digital-exclusion-in-uk-households-with-children/
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