Here's a round up of useful facts about digital inclusion. These stats come from the Lloyds Consumer Digital Report 2024, unless otherwise stated.
Many people in our society are not thriving because they do not have digital skills.
There are 4 bands and encouragingly 67% of us are in the "high" or "very high" digital skills bands. But....
The lower bands:
Compared to the highest band the lowest is:
As ever, the main determinant of skills is age. The younger you are, the better your digital skills are. There's been encouraging take-up of digital skills in the over 70s. But nearly 90% of the lowest band are over 50. And 23% of 70-79 year olds aren't online.
Online engagement begins to dip in the 40-49 age cohort and confidence starts to wane. This is a group that has grown up with computers, reinforcing the idea that digital capability is not static. The pace of technological change means people's skills can decline if not maintained.
The report looks in detail at the overlap between these. The two don’t track exactly. Partly because both are closely linked to age, broadly the younger you are, the better your digital skills; the older you are, the better your financial capability (see the chart).
And it's difficult to untangle the links between digital and financial capability. For example, those offline are less likely to be able to cope with a financial shock for three months or more, but they’re also more likely to be retired or lack formal qualifications (which will impact earnings and savings). There are some clear benefits. If you compare the highest and lowest levels, those in the highest digital capability are more likely to..
For manual workers, in particular, the most digitally savvy are 1.4 times more likely to be earning over £35,000 (compared to non-digitally-competent manual workers).
80% shop around for good deals. They use the internet to help them budget with tips, expertise and tools and to save through cash back and loyalty schemes.
They save four times more often and are saving up to £1,100 a year more.
The top band is twice as likely to use the internet to invest money and 3 times more likely to make deposits and withdrawals. And 1.5 times more likely to be planning their financial future.
Across the board, people are worried about money, but confidence in managing it is closely linked to confidence in using the internet.
The report then moves on to the Essential Digital Skills (EDS). The framework starts with a foundation level, which is digital basics. It then splits into EDS for Life and EDS for Work, both listing around 20 skills, divided into five areas.
The framework reflects the non-linear way people acquire digital skills - it's never straightforward - so you only need one skill in an area to qualify as having that skillset. But that means the headlines may not always fully represent ability.
For example, 93% of us count as having EDS for Life - because we have at least one skill in each area - but only 50% of us can actually do all 26 tasks.
The Foundation level
This covers eight fundamental digital skills - like using a mouse and adjusting settings on a device.
EDS for Life and Work
There are then 26 life tasks and 20 work tasks. The five areas are: communicating; handling information; transacting; problem solving and being safe online. The skills are things like using search engines, making video calls, keeping data safe and accessing digital pay slips.
This runs across sectors and demographics. On average 52% of people can’t do all 20 tasks. That rises to 62% if people have any form of impairment; to 63% in the over 55s; and to 65% for those working part time or in construction.
And there is a significant gender disparity too: 52% of men can do all the tasks but only 44% of women. Though there’s been improvement in men’s EDS in the past few years, there hasn't been in women's.
And it’s not just the obvious places where there are skills gaps: one in five people working in tech can’t do all 20 tasks. Neither can 32% of those earning over £75,000 a year or 48% of 18-24 year olds. From new starters to those in leadership roles, there’s a lack of skills that represent a significant challenge to business' capacity to operate and grow.
Employers need people with digital skills:
Employees want new digital skills:
Employers need to think not just about supporting digital skills but about raising awareness of digital inclusion and digital engagement more broadly. Benefits accrue to employers directly through the development of a digitally competent workforce and in their evolution as a digitally responsible business.
Though work and the workplace can be driver of digital up-skilling, it's not the only one. For example, 43% of 70-79 year olds think their digital skills need further improvement.
Around 39.4m people are happy to be self-directed in their learning. One the ironies of the situation is that digital skills are easy to learn if you have digital skills. There are lots of ways to find and access what you need. If you don't have the skills, you are more likely to have an additional barrier to learning in the first place, and you'll struggle to learn alone and online.
The focus of the Lloyds report shifts slightly every year. For example, during the pandemic, it focussed more on well-being than on financial stability. So some of these stats haven't been up dated but are still useful. The 2021 report included stats on what people gain from digital skills, highlighting trends that will only have increased as services and organisations become digital-first.