Understanding Data Poverty: Closing the UK's Digital Divide

Data poverty refers to the inability to afford sufficient mobile or broadband data to meet essential needs. It is a significant aspect of the digital divide, excluding individuals from education, society, and essential services.

Key Insights:

• Pandemic Impact: The COVID-19 pandemic worsened the digital divide, with 9% of households with children lacking devices necessary for remote learning in 2020.
• Rising Costs: By January 2023, 29% of UK households (8.1 million) struggled to afford communication services, up from 15% in 2021.
• Affected Groups: Younger adults, households with children, benefit recipients, and individuals with disabilities face the greatest challenges.

Causes of Data Poverty:

1. Affordability: Rising costs of broadband and mobile data, with increases up to 11.4% in 2022.
2. Geography: Urban areas generally have better coverage, but rural areas and urban gaps persist.
3. Digital Skills: Many lack the skills and confidence to navigate online platforms.
4. Other Barriers: Unstable employment, lack of permanent addresses, and difficulty accessing contracts.

Potential Solutions:

• Social Tariffs: Discounted broadband and mobile plans for vulnerable households. Some providers offer packages at £10–£20 per month compared to standard rates of £30–£40.
• Sector-Specific Efforts:
  • Water Industry: Social tariffs support customers with financial difficulties.
  • Energy Sector: Ofgem reforms aim to alleviate energy debt burdens.
  • Public Transportation: Discounted fares for job seekers and benefit recipients.