People using digital tools and services have a real advantage. They are more likely to build their saving reserves, find new ways to save money and can more easily find and access new information, plus manage their wellbeing, keeping connected to loved ones.

Stephen Noakes (Lloyds Banking Group)

Having Digital Skills
is a Necessity
Not a Privilege

Across the UK:

  • 11 million people (21%) lack the digital skills needed for everyday life
  • 11.8 million (36%) of  working adults lack the digital skills needed for work
  • 20% of people aged 65+ are digitally excluded
  • people with a registered disability are 28% less likely to have digital skills needed for everyday life
  • 10 million adults are at risk of digital exclusion and therefore exclusion from wider society as we know it

 

Lloyds Bank Consumer Digital Index 2021

The digital skills landscape

No universal definition of digital skills exists. However, they can be broadly defined as the skills needed to use computers and other digital technologies to carry out activities and achieve outcomes including communicating, managing information and accessing services.

The Lloyds Bank Consumer Digital Index (‘the Index’) is an annual study of UK digital skills, which includes a measurement of skills against the EDS framework (shown below).

Inequalities in digital skills

Certain groups are less likely to have digital skills than others. The main factors correlated with digital skill level are:

Age:

Age is the main factor, with older people more likely to have no or limited digital skills. The 2020 Index found that 46% of people aged 65+ had essential digital skills for life, compared with 96% of people in the 15-24 age group.

Socioeconomic status:

Those with fewer digital skills are more likely to be in lower socioeconomic groups. The 2020 Index found that 95% of those with an annual household income of over £50,000 had essential digital skills for life, compared with 64% of people with a household income under £17,499.

Location:

Digital skills levels vary regionally across the UK. The 2020 Index found that in London, 82% of those age 15+ had essential digital skills for life, compared to 73% in the East Midlands and 67% in Wales.

Education:

Those without formal qualifications are less likely to have digital skills for life than those who have them. The 2020 Index found that 93% of people with a university degree, masters or PhD had essential digital skills for life, compared with 34% of those with no formal qualifications.

Disability:

Disabled people are less likely to have basic digital skills than those who do not. A 2020 ONS survey found that 81.4% of disabled respondents were recent internet users (had used it within the last 3 months) compared with 97.5% of non-disabled respondents.

Barriers to digital skills

There may be a number of barriers to obtaining digital skills. These include lack of motivation or perceived need for them, a lack of trust in digital technologies and the internet (for example, fear of fraud), a lack of support with learning digital skills and lack of access to the required devices and internet connectivity.

Although younger people are much more likely to have digital skills than older people, some stakeholders have expressed concerns that referring to young people as ‘digital natives’ (very familiar with technology and the internet) can be misleading, as it may risk overlooking disadvantaged young people who face barriers such as poor device and internet access.

Impact of COVID-19

Concerns about the digital skills gap have been particularly acute during the COVID-19 pandemic as people have been more reliant on digital skills for work, accessing education and services, and socialising with friends and family. The 2020 Index looked at attitudes to digital skills during the pandemic. It found that 78% of respondents agreed that the pandemic had increased the need for digital skills. Age UK reported that 17% of people aged 75+ wanted to use the internet more frequently or for more tasks during the pandemic, but 79% of those lacked the digital skills to do so. More broadly, experts have raised concerns that the pandemic will exacerbate skills gaps and widen workforce inequalities.

Impact of digital skills

Digital skills are associated with a number of positive outcomes for both individuals and the wider economy. A 2018 study commissioned by Good Things Foundation estimated that the UK could benefit from £15 for every £1 invested in digital skills. The impacts of digital skills on outcomes include benefits for employment, earnings, personal finance, access to government services, health, and community engagement.

Employment

Digital skills are increasingly important for employment. Many jobs that traditionally did not require digital skills now require some level of engagement with digital technology.

Evidence suggests that for those already in employment, digital skills can improve an individual’s capability and efficiency at work, and lower the risk of job loss due to automation. For those who are unemployed, digital skills can help people to find work and improve their employment prospects.

Health and wellbeing

Offering health and wellbeing services online can be more convenient for users, reduce demand on services and help make cost savings. The COVID-19 pandemic has meant that many healthcare appointments are now being carried out virtually by phone or video call. Digitally excluded people are at risk of worse health outcomes and worse access to healthcare services.

Earnings

Evidence shows that digital skills are associated with higher earnings. Increased individual income associated with improved digital skills also has wider economic benefits through enabling more personal spending. A 2018 study commissioned by Good Things Foundation estimated that boosting digital skills in the UK could equate to a £571 million earnings benefit to the economy by 2028.

Personal finance

Digital skills and access to the internet can have substantial financial benefits. These include allowing people to manage their money through online banking, accessing financial and debt advice, saving money through online shopping and using online tools to compare the prices of goods and services.

Access to Government support services

Over the last decade, the UK Government has increasingly been encouraging people to access its services online. However, research shows that the people most likely to require Government support services are often from groups with lower levels of digital skills. Council services have been highlighted as one of the most inaccessible services for those who lack digital skills.

Communication and social engagement

Digital skills offer a wide range of ways to communicate with friends and family and can facilitate social and community engagement.74 There are concerns that those without digital skills are at greater risk of social exclusion and may not be able to access support networks as readily. This has been a particular concern during the pandemic, with many social and community activities moving online.

Reducing the digital skills gap

Approaches to improving digital skills in the UK include education for young people in schools and programmes that take place outside of the education system aimed at upskilling and reskilling adults. There are also initiatives aimed at improving access to digital devices and internet connectivity, which are key barriers to digital skills and inclusion.

Digital skills education in schools

Digital skills are taught specifically within computing lessons, although aspects of digital skills feature in other parts of the curriculum such as in relationships and sex education (POSTnote 576). The computing curriculum is mandatory in local authority-maintained schools from ages 5 to 16. It focuses on the fundamentals of computer science, but also aims to ensure that pupils are able to use information and communication technology ‘at a suitable level for the workplace and as active participants in a digital world’.

Adult upskilling and reskilling

It can be harder to access digital skills training after leaving formal education. However, various organisations run initiatives aimed at digitally upskilling adults. FutureDotNow, a coalition of organisations working to boost the UK’s digital skills, maintains a directory of UK digital skills programmes.

Access to devices and internet

Devices and internet connectivity are important for learning and improving digital skills. Several technology loan schemes have been set up by local groups and charities across the UK in recent years, often targeting people vulnerable to digital exclusion.

The Essential Digital Skills (EDS) framework

The Government’s EDS framework was published in 2018.16 It outlines five categories of digital skills and the tasks within each category that an individual needs in order to be classed as having digital skills for life or digital skills for work:

  • Communicating: the skills required to communicate, collaborate, and share information, for example by using word processing software and sending emails.
  • Handling information and content: the skills required to find manage and store digital information and content securely, for example, the ability to use search engines and the skills to assess the reliability of internet content.
  • Transacting: the skills required to register and apply for services, buy and sell goods and services, and manage transactions online. For example, the ability to book and pay for travel tickets online.
  • Problem Solving: the skills required to find solutions to problems using digital tools and online services, for example, using an online live chat facility to fix an issue, or using a tutorial video to learn how to do something.
  • Being safe and legal online: the skills required to stay safe, legal and confident online, for example controlling privacy settings on social media and recognising suspicious links in emails.

 

The framework also outlines a set of ‘foundation’ digital skills. These are basic abilities that underpin the essential digital skills and include the ability to do tasks such as turning on a device and connecting to a Wi-Fi network. A person who has essential digital skills for life can perform all tasks in the foundation level and at least one task from each of the five skills categories.

11.8 million (36%) of UK working adults lack the digital skills needed for work

This report contains information which is licensed under the Open Government Licence 3.0

Achieve Foundation

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