by Elizabeth Anderson, CEO of the Digital Poverty Alliance
Currently, 13-19 million people aged 16+ are estimated to be in digital poverty according to a report by Deloitte for the Digital Poverty Alliance. Whilst digital poverty impacts families of all ages, the report highlights that many older people are held back by the affordability of broadband services. In the current cost of living crisis, households are cutting back on broadband, unable to sustain the costs of internet connectivity alongside other utilities.
This leads to people being forced to choose between being cut off from essential services – frequently only available online – or paying for other household priorities such as food or fuel. For those over 65, the problem is more prevalent, with half of all older people experiencing some form of digital exclusion.
Cost of getting online
Our 2023 research showed that one out of five older adults are experiencing severe digital poverty. In particular, elderly individuals in financial difficulty have concerns regarding the escalating costs of broadband services and the measures they need to take in order to manage their expenses.
According to polling conducted by YouGov, a substantial 48 per cent of respondents indicated they had faced challenges keeping up with their broadband bills in the past six months.
This reveals the difficult choices that elderly individuals need to make, as they aim to find a balance between prioritising essential needs and maintaining their broadband connectivity.
Internet access is not just a convenience in everyday life, but gives accessibility to the external world, now, realistically, the key method of communication through email, messages, and even phone calls. Without it, there is an increased risk of isolation from social circles, loved ones and essential services, as well as missed opportunities for accessing more economical deals and savings. Health services are growingly moving online – whether booking a GP’s appointment, accessing health information, or using telemedicine. The Deloitte research highlighted that up to 24,000 lives could be saved by older people moving out of digital poverty.
Whilst mobile data can present an alternative to fixed line broadband, older people are less likely than other age groups to own a smartphone, or to feel confident using one. Mobile data often does not present value for money when used as the sole means of connecting to digital services. Those on low incomes will often opt for cheaper packages that present lower value for money, with data caps that can leave households disconnected once data runs out.
Research indicates that approximately 9 per cent of older individuals have cancelled their internet or phone services during the recent winter months as a cost-saving measure, with an additional 4 per cent having taken this step before winter for the same financial reasons.
The emerging trends paint an alarming picture, underscoring the critical need to address the issue of digital poverty, and the affordability of broadband for older individuals in low-income brackets.
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Awareness of broadband financial support
Social tariffs are reduced-cost plans designed for individuals receiving specific government benefits, including Pension Credit, to make digital access more affordable for those on low incomes.
Despite the availability of social tariffs from most major broadband providers, a significant number of eligible individuals remain unaware of their existence or have limited knowledge about them, with around 63% of adults in a recent survey by Which? being unfamiliar with these products.
Raising awareness about their availability is therefore crucial. This could be achieved by broadband providers and the UK Government actively promoting social tariffs, directing these efforts toward all eligible groups, particularly older individuals with low incomes who receive Pension Credit. Signposting solely online is not enough – for those caught in digital poverty, they are unlikely to find information online sufficient. Therefore, promotion must be through physical literature (for example, information could be included in mailings from DWP), or at the point that individuals are accessing services in another way – such as face to face, or by telephone.
When social tariffs are still unaffordable
Concerns remain that social tariffs are still out of reach for those on the lowest incomes, with the average broadband social tariff still £17 a month. Research shows that older individuals with limited incomes find the average cost of a broadband social tariff still too expensive, when they are looking to balance this against other household bills, food and other living costs.
We continue to advocate for an industry wide social tariff, with guaranteed sufficient and reliable speeds; and for the reduction of VAT on all internet bills – to 5% – reflecting that the internet is now an essential utility, with these savings passed onto consumers.
So, what next?
Following the recent Digital Exclusion inquiry by the House of Lords, we echo Peers’ calls to government to do more to tackle digital poverty centrally, and to set the tone for civil society to find more solutions faster, especially as so many organisations rush to move to digital first provision. We also look to industry to innovate, not just making networks available UK wide, but also identifying new models that can bring the costs of internet access down.
Until this is tackled, it is essential that organisations maintain other ways of accessing services and support for older people and those on low incomes.
The Digital Poverty Alliance continues to seek action to end digital poverty once and for all in the UK by 2030, through research and advocacy, bringing people and organisations together, and delivering projects to help real people, right now. But only co-ordinated solutions can create real change – and raising awareness that millions of people remain disconnected, or have a very limited digital experience, is the first step.
