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Select committee: Communications and Digital Committee

Digital exclusion and the cost of living

Closed Opened 8 Feb 2023 Closed 8 Feb 2024 15 recommendations 29 conclusions

Communications and Digital Committee Inquiry on parliament.uk ↗

Inquiry scope (the committee's words)
This inquiry will examine how to tackle digital exclusion in the context of the cost of living crisis. Read an enhanced summary of the key points from our report

Where it stands

The inquiry is closed, opened 8 February 2023.

The committee has published 1 report, most recently 3rd Report - Digital exclusion on 29 June 2023.

The government's response

Published 20 October 2023. The deadline was 19 September 2023.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government agrees that digital exclusion is affecting millions of people, says "there is more to be done", and responds by creating a cross-Whitehall ministerial group rather than a dedicated unit.

  • On the recommended cross-government unit, it says a dedicated unit "risks separating inclusion from dedicated policy expertise", and will instead "establish a dedicated cross-Whitehall ministerial group" chaired by the Minister for Tech and Digital Economy.
  • On VAT, it states "there are no plans to deviate from the standard VAT rate" for retail or wholesale social tariffs, though it "keeps taxation policy under review".
  • On advertising of social tariffs, it has "no plans to provide Ofcom with powers to regulate how and where telecoms companies advertise their products". It also says a clearer definition of a social tariff may "create a standardised product".
  • On donating old devices, it says security and data privacy concerns prevent DSIT donating at present, but it "will conduct a substantive review" of its position to identify "a potential roadmap to future donation".

Read the government's response ↗ Report an error

Recommendations and conclusions

All 44 recommendations and conclusions

Reports

All reports

Evidence

  • 8 oral evidence sessionsLatest 2 May 2023
  • 37 witnesses
All evidence

Recent activity

Meetings and visits

Recommendations and conclusions 44 shown

Conclusion 1

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Digital exclusion remains a serious problem. Although there has been progress in recent years, millions of people still cannot access the internet or use it adequately. For some, skills and motivation are the main barriers. For others, affordability is the key obstacle. Others face barriers around accessibility, or poor mobile and broadband coverage. These groups face deepening isolation as society becomes increasingly digital.

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Conclusion 2

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Cost of living challenges have made a bad situation worse for people who struggle to afford internet access. The need for Government action is becoming increasingly urgent.

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Conclusion 3

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
The economic case for tackling digital exclusion is clear: it would improve productivity, support economic growth and alleviate pressure on some public services. Yet the Government does not appear to have conducted a single assessment of the economic impacts of digital exclusion in recent years.

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Conclusion 4

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
The Department for Science, Innovation and Technology should work with the Treasury and external stakeholders to publish (a) an assessment of the likely economic impact of digital exclusion over the next 10 years; and (b) value for money assessments of interventions to narrow the digital divide.

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Conclusion 5

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Tackling digital exclusion would support a range of high-profile Government commitments, notably levelling up, improving public health and achieving net zero. There is also a strong civic case for addressing digital exclusion. It would help ensure many of the most vulnerable in society have a voice at a time when political debate and engagement are increasingly moving online.

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Conclusion 6

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
The Government has taken its eye off the ball. It has not refreshed the digital inclusion strategy since 2014 and seems to have ceased formally monitoring progress on it. The principles set out in the strategy may endure but the contention that digital exclusion is a Government priority is not credible.

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Recommendation 7

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
The Government should publish a refreshed digital inclusion strategy within six months of responding to this report. In the meantime it should provide an update on progress against the 2014 strategy objectives in response to this report.

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Conclusion 8

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
We have no confidence that the Department for Science, Innovation and Technology (DSIT) is making digital exclusion a priority in cross-Whitehall policy-making. There do not appear to be adequate formal structures for co-ordinating policy, updating targets, or reviewing progress at either an official level or ministerial level.

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Recommendation 9

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
DSIT should establish a cross-government digital exclusion unit. It should have a mandate for co-ordinating external stakeholders and working across departments to embed digital exclusion in priority policy areas, notably economic growth; levelling up; public health; education and skills; and employment and welfare.

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Recommendation 10

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
We further recommend that the Prime Minister’s Office takes a direct interest in tackling digital exclusion and establishes a suitable mechanism to oversee progress on the refreshed digital inclusion strategy.

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Recommendation 11

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
The Government must show leadership on tackling digital exclusion. This is a complex task and the Government cannot solve everything, but that is no excuse for inaction. Incremental progress against clearly defined targets is possible. The extent of Government intervention should be guided by three core principles: pragmatism, proportionality, and joined-up working.

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Conclusion 12

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
We welcome recent improvements in the availability and awareness of social tariffs. But take up stands at just five per cent.

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Recommendation 13

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
We urge internet providers to do more to increase social tariff uptake and review whether their current promotional strategies are delivering results. Ofcom should provide a clearer expectation of what constitutes a social tariff and work with providers, consumer organisations and comparison websites to make it easier for customers to compare deals. Ofcom should be empowered to regulate how and where companies advertise social tariffs, and hold them accountable.

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Recommendation 15

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
The Government should remove VAT from retail social tariffs and from the wholesale broadband used to provide them. The Government must then work with Ofcom to monitor social tariff prices to ensure these savings are passed on to consumers.

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Conclusion 16

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Removing VAT may not be enough to lower prices to an affordable level for those on the lowest incomes. Lowering the wholesale price floor for sales of social tariffs is one way to address this.

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Conclusion 18

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
We welcome the introduction of alternative voucher and discount schemes. These provide flexible ways to help people afford internet access.

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Recommendation 19

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
The Government should work with industry to explore options for expanding these schemes during cost of living challenges to help wider groups at risk of digital exclusion.

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Conclusion 20

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Mid-contract price rises are partly a result of legitimate investment needs and economic constraints for providers. But their scale is concerning, with many exceeding already high inflation rates. The rises compound existing cost of living pressures. And the level of exit fees is often unjustifiable. We therefore welcome Ofcom’s review of how mid-contract price rises are formulated and communicated to consumers.

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Conclusion 21

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
We encourage Ofcom to set out options for providing greater certainty to consumers throughout mobile and broadband contract lifetimes. We further encourage Ofcom to review how exit fees are calculated and investigate options for reducing their cost.

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Conclusion 22

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Device distribution schemes cannot solve digital exclusion on their own. But they are a practical way of reducing barriers to getting people online. These initiatives should be scaled up.

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Recommendation 23

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
The Government should lead by example by encouraging public sector organisations to securely wipe, refurbish and donate old devices to digital inclusion device distribution schemes. It should encourage businesses to do likewise.

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Conclusion 24

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
The rollout of broadband and mobile data infrastructure has progressed well over the past five years. However, areas of poor connectivity persist. Rural and remote areas are particularly affected, though pockets of poor urban connectivity are also notable.

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Conclusion 25

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
The Government’s focus on connecting poorly served areas through Project Gigabit and the Gigabit Voucher Scheme should continue.

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Conclusion 26

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Expectations of what constitutes a “decent broadband service” will continue to change as the internet becomes ever-more embedded in personal and working lives. We are concerned that the Universal Service Obligation minimum standard is not keeping pace with modern requirements for digital inclusion.

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Recommendation 27

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
We recommend that Ofcom reviews the adequacy of the Universal Service Obligation and definition of a “decent broadband service”, taking into account the potential impact on private and Government investment that would arise from any changes.

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Conclusion 28

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Altnets deliver important competition to larger broadband providers and valued services for underserved communities—particularly in rural areas. Many altnets provide extra support, for example connecting digital inclusion hubs and providing doorstep help to customers.

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Conclusion 29

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
The rollout of full fibre may lead to some altnet consolidation. While this is a feature of a competitive market, the loss of altnets would mean fewer digital inclusion benefits that arise from their social enterprise-based work.

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Conclusion 30

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Much attention has been paid to broadband rollout. More attention should be paid to take-up rates and the implications for competition and the health of the telecommunications market.

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Recommendation 31

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
In setting strategic priorities for Ofcom, the Government should prioritise the long -term benefits to consumers of market competition and recognise the benefits to digital inclusion provided by altnets. Ofcom should have regard to the levels of take up of full fibre products and the breadth of infrastructure competition when reviewing the state of competition in the telecommunication market.

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Conclusion 32

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Millions of people still lack the most basic digital skills for work and life. This problem affects a range of age groups. Addressing it should be a Government priority but there is insufficient leadership to make this happen.

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Conclusion 33

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
The Essential Digital Skills Framework provides a good basis for driving improvements but it is not being used to its full potential.

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Conclusion 34

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
The Department for Education should use it to set basic digital skills targets at different education stages, including for school leavers. Apprenticeships and adult education courses offer further opportunities to test and provide basic skills training for people already enrolled on education programmes. The Department for Education should encourage a consistent cross-government approach to using the Framework.

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Conclusion 35

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Formal qualifications are not always the best way to help adults obtain basic digital skills. Local interventions and more informal engagements delivered through community hubs can provide a key way of reaching digitally excluded individuals, and building the motivation, confidence and skills needed to get online. But many smaller organisations find it difficult to access the resources to deliver such work, particularly when funding schemes are designed for larger institutions.

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Recommendation 36

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
The Government should ensure community-level interventions feature prominently in its digital inclusion strategy refresh. This does not mean they need to offer formal qualifications. The Government should work with funders and local authorities to review the criteria and systems for distributing funding for basic skills support to ensure that smaller organisations are not prevented from accessing the resources needed to deliver local -level interventions.

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Conclusion 37

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
The shift towards digital by default public services has not been accompanied by commensurate support for those who struggle with digital access. Libraries and community organisations have taken on additional responsibilities to fill these gaps, but without sufficient resources and training.

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Conclusion 38

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
The Government’s digital inclusion strategy refresh should include support for place-based in-person initiatives to help those who cannot navigate online access to essential services. This could include boosting the role of libraries, community centres and local amenities as inclusion hubs, in partnership with businesses.

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Conclusion 39

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
Not everyone wants to be online, or online all the time. And some services are better in person. Private and public service providers should avoid viewing digital as a cheap substitute for good customer service. Adequate provision must be maintained for those who cannot or do not wish to use online services.

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Recommendation 41

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
As part of the strategy refresh, the Government should audit public sector websites for compliance with accessibility standards and regulations.

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Recommendation 42

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
The Government should encourage private sector organisations to adopt website design accessibility standards used by the public sector. This could start with the most significant public-facing services, for example in healthcare, finance and housing.

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Conclusion 43

Conclusion · 3rd Report - Digital exclusion

Concluded (the committee's words)
As public-facing services become increasingly digitised, machine learning tools and predictive analytics are likely to influence policy choices and service delivery. Digitally excluded groups are at risk of being poorly represented in key datasets, and hence face further marginalisation.

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Recommendation 44

Recommendation · 3rd Report - Digital exclusion

Recommended (the committee's words)
The Government should commission a review to understand the extent of predictive analytics in public-facing services, their likely trajectory over the next five years and the effects on digital exclusion policy. In the meantime the Government should require public service providers using predictive analytics to consider the use of data and the impacts on those who are digitally excluded.

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Reports

1 report

Oral evidence sessions

8 sessions

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Date Session and witnesses Source
2 May 2023
Oral evidence session
Holly Creek · Department for Science, Innovation and Technology, Paul Scully MP · Department for Business, Energy and Industrial Strategy 		View ↗
25 Apr 2023
Oral evidence session
Cristina Luna-Esteban · Ofcom, Ellen Judson · Demos, Hugo Drayton · Citizens Online, Liam Halligan · The Telegraph, Lindsey Fussell · Ofcom 		View ↗
18 Apr 2023
Oral evidence session
Antony Walker · techUK, Kat Dixon, Liz Williams MBE · FutureDotNow, Professor Simeon Yates · University of Liverpool 		View ↗
21 Mar 2023
Oral evidence session
Councillor John Hacking · Manchester City Council, Dr Adrian Weller MBE · University of Cambridge, Jemma Waters · Lloyds Bank, Joanna Causon · The Institute of Customer Service, Owen Barry · Capita, Professor Helen Margetts · The Alan Turing Institute 		View ↗
14 Mar 2023
Oral evidence session
Kristina Reinsalu · e-Governance Academy, Professor Ellen Helsper · London School of Economics and Political Science, Professor Hamish Laing · Digital Inclusion Alliance Wales, Róbert Bjarnason · Citizens Foundation Iceland, Róisín Wood OBE · Community Foundation Northern Ireland, Sally Dyson · Scottish Council for Voluntary Organisations 		View ↗
7 Mar 2023
Oral evidence session
Helen Burrows · BT Group, Helen Wylde · Wildanet, Ian Streule · Analysys Mason, James Barford · Enders Analysis, Paul Morris · Vodafone, Tim Stranack · Community Fibre Ltd 		View ↗
28 Feb 2023
Oral evidence session
Dr Jake Anders · UCL Centre for Education Policy and Equalising Opportunities, Dr Robin Christopherson MBE · AbilityNet, Patricia Bailey · ATD Fourth World UK, Sally West · Age UK 		View ↗
21 Feb 2023
Oral evidence session
Helen Milner OBE · Good Things Foundation, Rocio Concha · Which?, Rowlando Morgan · Centre for Economics and Business Research, Tom Lowe · Digital Poverty Alliance 		View ↗

Who gave evidence

37 witnesses

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WitnessOrganisationSessions
Antony Walker · Deputy Chief Executive techUK 1
Councillor John Hacking · Executive Member for Skills, Employment and Leisure Manchester City Council 1
Cristina Luna-Esteban · Director of Telecoms Consumer Protection Ofcom 1
Dr Adrian Weller MBE · Director of Research in Machine Learning University of Cambridge 1
Dr Jake Anders · Deputy Director UCL Centre for Education Policy and Equalising Opportunities 1
Dr Robin Christopherson MBE · Head of Digital Inclusion AbilityNet 1
Ellen Judson · Senior Researcher Demos 1
Helen Burrows · Content and Services Policy Director BT Group 1
Helen Milner OBE · Chief Executive Good Things Foundation 1
Helen Wylde · Chief Executive Officer Wildanet 1
Holly Creek · Deputy Director for Wireless Infrastructure, Spectrum and Consumer Policy Department for Science, Innovation and Technology 1
Hugo Drayton · Chair of Trustees Citizens Online 1
Ian Streule · Partner Analysys Mason 1
James Barford · Director of Telecoms Enders Analysis 1
Jemma Waters · Head of Digital, Group Customer Inclusion Lloyds Bank 1
Joanna Causon · Chief Executive Officer The Institute of Customer Service 1
Kat Dixon Not recorded 1
Kristina Reinsalu · Programme Director of e-Democracy e-Governance Academy 1
Liam Halligan · Economics Correspondent The Telegraph 1
Lindsey Fussell · Group Director for Networks and Communications Ofcom 1
Liz Williams MBE · Chief Executive FutureDotNow 1
Owen Barry · Managing Director of Justice, Central Government and Transport Capita 1
Patricia Bailey · Member ATD Fourth World UK 1
Paul Morris · Head of Government Affairs Vodafone 1
Paul Scully MP · Minister for Small Business, Consumers and Labour Markets Department for Business, Energy and Industrial Strategy 1
Professor Ellen Helsper · Professor of Digital Inequalities London School of Economics and Political Science 1
Professor Hamish Laing · Chair Digital Inclusion Alliance Wales 1
Professor Helen Margetts · Director of the Public Policy Programme The Alan Turing Institute 1
Professor Simeon Yates · Professor of Digital Culture University of Liverpool 1
Rocio Concha · Director of Policy and Advocacy Which? 1
Rowlando Morgan · Head of Environment, Infrastructure & Local Growth Centre for Economics and Business Research 1
Róbert Bjarnason · President Citizens Foundation Iceland 1
Róisín Wood OBE · Chief Executive Officer Community Foundation Northern Ireland 1
Sally Dyson · Head of Digital and Development Scottish Council for Voluntary Organisations 1
Sally West · Policy Manager Age UK 1
Tim Stranack · co-founder Community Fibre Ltd 1
Tom Lowe · Head of Policy and Communications Digital Poverty Alliance 1

Meetings & visits

1 item

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DateTypeDetailSource
3 May 2023 Formal meeting (private meeting) Not recorded · Virtual meeting