Peers Call for VAT-Free Internet Deals to Bridge Digital Divide.

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Bridging the Gap: The Need for Affordable Internet Access

Peers have urged that special internet deals for individuals on benefits should be exempt from VAT in order to increase online accessibility for more people. A report by a committee of Lords highlighted that those without internet access face a disadvantage when searching for employment and engaging in various essential services. The report criticized the government for lacking a credible strategy to address digital exclusion.

Government’s Commitment: Bridging the Digital Divide

The government, however, asserts its commitment to ensuring that no one is left behind in the digital age. It highlights its efforts in providing discounted social broadband and mobile tariffs, available to 99% of the UK population, with prices starting as low as £10 per month. These social tariffs are aimed at individuals receiving benefits. Nevertheless, despite these initiatives, approximately 1.7 million households still lack mobile or broadband internet at home, and nearly a million people have reduced or canceled their internet packages within the past year, according to the House of Lords communications and digital committee.

Consequences of Digital Exclusion: Job Opportunities and Essential Services

As more services, including benefits and banking, move online, the lack of internet access presents significant challenges. Approximately 90% of job vacancies are only advertised online, putting those without internet access at a disadvantage. The testimonies of individuals like Bella, who grew up in a single-parent household, shed light on the struggles faced by those without internet access, including difficulties in completing school assignments due to limited access to a laptop.

A Struggle for the Marginalized: Care-Leavers and Financial Constraints

Katherine Sacks-Jones, chief executive of children-in-care charity Become, emphasized the difficulties faced by care-leavers who often lack the financial means to afford Wi-Fi or data for their phones due to other pressing expenses. Individuals have shared their stories of managing benefit claims and fulfilling online forms while facing challenges such as limited data, restricted library hours, and high costs associated with internet access.

Governmental Accountability: Urgent Actions Required

The report accuses the government of neglecting the issue and failing to prioritize efforts to bridge the digital divide. It argues that the government’s ambition to become a technology superpower and stimulate economic growth is undermined by the substantial levels of digital exclusion. The report also highlights concerns about potential biases in public service delivery due to increasing AI usage, as digitally excluded individuals may be underrepresented in the datasets used to train AI systems. Peers are calling for an increase in the utilization of social tariffs, currently utilized by only 5% of eligible individuals. Additionally, they urge the Chancellor to remove VAT from social tariffs promptly and emphasize the need for improved advertising of these tariffs by companies, a responsibility that should be enforced by Ofcom.

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