Lack of digital skills costing UK economy £12.8bn

Free digital skills training will be delivered by more than 2,000 Virgin Media O2 volunteers working with local authorities and the public sector across the UK as research finds 5.4 million British workers unable to carry out simple tasks online

New research from Virgin Media O2 and economic modelling from Cebr has found that a lack of digital skills is costing the economy £12.8 billion in Gross Value Added (GVA) with 5.4 million British workers unable to engage online.

These findings have prompted the launch of 'Connect More' a national programme to help equip digitally-excluded local community residents with the skills, confidence, and motivation to use everyday technology and get online. The Programme will see company volunteers use five paid volunteering days a year to deliver much-needed digital skills training, such as through local authority-run drop-in centres, across the UK. Anyone in Virgin Media O2 Business' team of more than 2,000 employees can volunteer to take part and become a digital skills trainer, and the company will work with its network of public sector partners to pair volunteers with residents most in need.

Following a successful pilot in Greater Manchester, Virgin Media O2 Business is now working with its network of public sector customers to help it deliver Connect More at a community level and reach those housing association residents who are most at risk of digital exclusion. The company is committed to offering resources that directly support public services on the ground - to tackle digital exclusion at a national level with a local-first approach - and is developing tailored delivery plans with each local authority wanting to take part.

Jo Bertram, Managing Director, Virgin Media O2 Business commented:

"At Virgin Media O2 Business, we have both a strong network of public sector customers, and a team of thousands of our own people who are ready and able to make a difference. So, with Connect More we're joining the dots: putting time and resource behind an initiative that mobilises our people to deliver free digital skills training and make a real impact on everyday lives and communities. And we're now calling on the public sector to help us deliver it: by connecting us with those in most need of support."

Digital exclusion is a business problem

Virgin Media O2's research has highlighted the gravity of the digital exclusion situation in the UK. Almost a third (31%) believe they have been passed over for a promotion or pay rise because of a lack of digital skills. A quarter of people in the lowest earning pay bracket (less than £12,570 p/a) feel their skills would be inadequate to secure them a similarly paid role if made redundant, while a fifth (21%) say they need digital skills so they can get a job with a higher salary.

Digital exclusion isn't just a social, quality of life issue affecting older people. The flip side of the issue is the limiting effect that digital exclusion has on the health of SME's which constitute a huge proportion of the UK economy. Start-ups and scale-ups are competing with larger enterprises for digital skills in a hyper competitive marketplace, and without these skills they cannot grow and employ more people.

Shortfalls of digital skills are experienced across the UK, but are not equally distributed across regions.

Andy Burnham, Mayor of Greater Manchester, said: "If Greater Manchester is truly going to be a world leading digital city region, we have to make a big commitment to fix the digital divide, the consequences of not doing so are severe - with our people at risk of further social isolation, lack of equal opportunities and not being able to access support. We are ensuring that everyone in Greater Manchester, whatever their age, location or situation, can benefit from the opportunities digital brings.

"Now is the time where Greater Manchester can lead the way in achieving an ambition that we should all strive for country wide. Collaboration is integral to what we do and tackling digital exclusion through Virgin Media O2 Business' Connect More Programme supports our objective of becoming recognised as a world leading digital city-region in a way that puts our people first."