
According to the latest research from the 2023 Lloyds Bank Consumer Digital Index suggests that 96% of people in the UK now make use of the internet regularly (i.e. have been online in the last 3 months). However, there is still a major gap in digital inclusivity and digital skills with approx. 14 million people (approx. 27% of the population) with the lowest digital capability. According to the Digital Poverty Alliance, this means they’re not only likely to struggle to interact with online services but are at risk of being left out of society. 2.1 million people in the UK are offline, and c.4.7 million people cannot connect to Wi-Fi, impacting their everyday lives.
Those getting left behind digitally are more likely to be over 70, however there are over 300,000 people under the age of 50 who are digitally disadvantaged.
The main causes of exclusion, outlined by the Lloyds Consumer Index report, are (i) cost of living (ii) fear of fraud (iii) lack of motivation to learn.
The Essential Digital Skills (EDS) framework outlines 26 life tasks, and 20 work tasks split across five skill areas: Communicating, Handling Information and Content, Transacting, Problem Solving and Being Safe and Legal Online. An individual needs to perform at least one task within each of the five Life and Work skill areas, without assistance, to achieve Life or Work EDS. Digital inclusion needs a combination of access, trust, confidence and capability to develop.
The Essential Digital Skills (EDS) framework outlines 26 life tasks, and 20 work tasks split across five skill areas: Communicating, Handling Information and Content, Transacting, Problem Solving and Being Safe and Legal Online. An individual needs to perform at least one task within each of the five Life and Work skill areas, without assistance, to achieve Life or Work EDS. Digital inclusion needs a combination of access, trust, confidence and capability to develop.
Some of the benefits of better digital skills are saving time, money and reducing stress.
Those getting left behind digitally are more likely to be over 70, however there are over 300,000 people under the age of 50 who are digitally disadvantaged.
The main causes of exclusion, outlined by the Lloyds Consumer Index report, are (i) cost of living (ii) fear of fraud (iii) lack of motivation to learn.
This is the total value per person with improved digital skills for one year, as measured by Good Things Foundation across nine categories in 2022:
Overall, the pre-rounded figures for each area of benefit equate to a headline figure of £670.
Adjusted value for inflation to 2023 prices is £712. Our approach to inflation adjustments is explained on our Methodology page HERE
An overall rounded (to nearest 100) value of £700.
The Good Things Foundation 2022 report covers the 10-year period of 2023 to 2032; estimating the costs and benefits of ensuring that as many people as possible within the UK are fully digitally included by the end of 2032. The report includes the costs of inclusion, and the benefits of that inclusion in line with the above 9 benefit streams. The result is a cost benefit ratio of 9.48, indicating that for every £1 invested in digital skills training, £9.48 is gained throughout the economy. The associated net present value is £12.2 billion.
As a comparison, according to recent Lloyds Consumer Digital Index research (2023) those with higher digital and financial capabilities are saving over £900 a year more than those in the lower groups.
If you’re just starting out, start with Bronze first. The result of a Bronze measurement is just an estimate, but requires the least effort; whereas Silver, Gold and Gold+ give more accurate results but require more effort.
Each level has an effort to accuracy indicator, choose the one that’s right for you.
A single proxy value of £700 per person.
Plus financial cost of any devices purchased/contributed.
For each person who has engaged in a training course to upskill their digital skills from no digital skills to ‘Life EDS’, i.e. able to complete at least 1 task in each skill of the EDS framework, apply the single per person proxy.
Also count any additional financial value of any device or equipment purchased / contributed.
Per person only count the benefit categories that you believe they will experience:
Categories | Values in 2023 prices |
National Health Service (NHS) savings – £40.00 | £43 |
Government Efficiency Savings – £60.00 | £64 |
Time Savings from online transactions – £160.00 | £171 |
Retail transaction benefits – £260.00 | £279 |
Corporate Savings – £90.00 | £96 |
Employment – £7.00 | £7 |
Earnings – £25.00 | £27 |
Government Revenue – £20.00 | £21 |
Environment – £3.00 | £3 |
Add any equipment value purchased / contributed.
You could also look at weighting the benefits based on the most important demographic factors for digital inclusion: age, disability, employment status
Only claim for the benefits you expect to happen from the eight categories, based on the focus of any digital inclusion training, i.e. does it focus on digital financial literacy, job searching, or general skills development? If you are working with older people who are not in working age, consider removing the earnings and employment benefits.
Those with digital skills are expected to place less pressure on the NHS, by reducing the number of in person GP appointments they attend. By estimating the number of fewer appointments each person receiving digital skills support is likely to make as a direct result of being upskilled, we are able to quantify savings that the NHS is likely to make with a fully digitally included UK.
From 2023 to 2032, the NHS will save 20 million for each group of 508,000 people who are trained in each year, through a reduction in GP appointments, directly because of digital upskilling of patients. Summed over the entire period, benefits to the NHS are expected to total £899 million.
For a per person figure, we can take the initial yearly saving figure of £20,000,000 and divide this by the trained group of 508,000 = £39.37, or approximately £40
2. Government Efficiency Savings
The Digital Efficiency Report jointly published by the Cabinet Office and the Central Digital & Data Office, states that savings are likely to be made in four key areas:
Since the agendas inception significant progress has been made and the UK has become a world leader in government digitisation, reaching number two in the most recently published OECD Digital Government Index. This continued progress, however, depends on uptake, which in turn depends on UK citizens being technologically capable of utilising the digital services. This benefit estimates the increase in uptake of online government transactional services which is likely to occur as a result of digital inclusivity, and the associated monetary savings accrued to the UK government.
The Good Things Foundation 2022 report averaged two estimation approach results across, finding that efficiency savings to government from supporting 508 thousand adults in digital skills acquisition per year will total £32.2 million.
For a per person figure we can divide the £32,200,000 savings to government by the 508,000 people digitally trained = £63.39, or approximately £60
3. Time Savings from online transactions
The trend towards conducting personal transactions online as opposed to in person or via telephone has increased substantially in recent years. Technological advancements have meant that undertaking daily tasks such as booking dentist’s appointments, train and aeroplane journeys and managing personal finances can be done from one’s own home.
The Good Things Foundation report estimates that a digitally trained person will save approximately 30.4 hours of personal time per annum because of completing government and banking transactions online.
The Department for Transport estimates the market value of leisure time, which is published in its TAG data book. Using the November 2021 dataset converted to 2022 prices the Cebr report utilised leisure time valuations within the TAG data book as these activities are mainly undertaken during individuals’ personal time.
Using these figures, the report estimates that from 2023 to 2032, each group of 508 thousand receiving basic digital skills support each year will save 15.4 million hours at a value of £83.9 million.
For a per person figure we can divide the £83,900,000 by the 508,000 people = £165.16, or approximately £160
4. Retail transaction benefits
Like the trend toward increased transition of government and banking transactions to digital spaces, technological advancements have led to an increase in online shopping in recent years. In addition to the time saved by shopping from home, individuals also benefit from making online purchases as opposed to visiting physical stores. People spend less on travel and amenities such as food and drink. They also benefit from conducting price comparisons between stores, brands and products, to obtain the best deal.
The latest Lloyds consumer digital index report for 2021 found that consumers who were online shoppers in 2020, have increased the number of online transactions they made by 18% over that period. On average this means they made 30 more online transactions, spending an extra £1,800 online in 12 months.
The report estimates the average person saves £258.31 per annum in 2022 prices, or approximately £260 rounded
5. Corporate Savings
Corporations will gain monetary benefits by filling vacant positions as a direct result of those receiving digital skills training each year from 2023 to 2032. The report estimates this to amount to £2,719 million in total over the 10-year period.
Annual corporate benefits increase from £46 million in 2023 for the estimated 508,000 annually trained people, to £469.6 million cumulatively in 2032.
For a per person figure we can divide the initial years benefits of £46,000,000 by the 508,000 trained people = £90.55, or rounded to an approximate £90
6. Employment
Individuals will gain monetary benefits through employment because of becoming digitally included. A proportion of those gaining digital skills will gain employment directly because of these skills, according to a PWC study approx. 5.7% – 5.9% of those gaining basic digital skills will gain employment as a direct result of becoming digitally included between 2019-2032.
Using the lowest quartile of earnings ranging from £15,532 per annum in 2019 to £23,466 per annum in 2032 we can multiple the wages by the group likely to find work because of becoming digitally included and were likely to be unemployed beforehand, and obtain estimates for the additional wages earned through the unemployed gaining employment as a direct result of becoming digitally skilled. Cebr estimates that these earnings amount to £4.6 million in 2023, and increase gradually year on year, to reach £6 million in 2032.
There are 4,300 individuals who are estimated to be unemployed within the overall group of 508,000 who will be digitally upskilled each year.
The benefits generated from the 508 thousand who receive digital skills support, generates £3.7 million in year.
For a per person figure we can divide the £3,700,000 by the 508,000 people trained = £7.28, or rounded to £7
If wanting to estimate the potential employment benefit only for those estimated to be unemployed in the first place, then the value can be calculated based on the total estimated employment benefit £3,700,000, divided by the 4,300 estimated unemployed people who are trained = £860.47, or rounded to £860.
If you know that your people have gained employment directly because of gaining digital skills and nothing else, then you can calculate the value based on the 5.7% estimate of unemployed people who will gain employment directly because of gaining their digital skills.
This would work out as £3,700,000 divided by (5.7% of 4,300 = 245) = £15,095 approximately. Or in this case you could count the direct employment wage and benefits the individual has received.
7. Earnings
Those with higher skills are likely to earn more.
Using research from the Centre for Education and Economics conducted in 2007, a conservative assumption is that individuals who learn basic digital skills can expect an increase in their hourly earnings of 2.8%. It is important to note that this figure refers specifically to ‘basic’ digital skill acquisition; those who have more advanced levels of digital skills are likely to see an even larger increase in earnings.
The 2.8% earnings uplift can be applied to hourly wages estimates from the Annual Survey of Hours and Wages (ASHE) to obtain an estimate of likely earnings following the acquisition of basic digital skills. The difference is the overall increase in earnings resulting from this group receiving digital skills support.
The estimated net increase in earnings per year for the 508 thousand who receive digital skills support will be £13.1 million in net benefits.
For a per person figure we can divide the £13,100,000 by the number of people 508,000 = £25.79 or an approximate £25
If you are sure about the impact only affecting those that are employed, and not unemployed, or economically inactive, you could use the estimated figure only for those directly impacted, i.e. those that are employed and therefore receiving the uplift.
This would make the figure £13,100,000 / 33,200 employed people = £394.58, or rounded to £395
8. Government Revenue
Through an increase in earnings of those employed and receiving digital skills training and those who gain employment because of training there will be an increase in government tax revenue. There will also be a reduction of job seekers allowance payments to those who are estimated to gain employment because of receiving digital training. The specific taxes calculated include income tax, employee’s national insurance contributions (NICs) and employers’ NICs.
In 2023, £10.6 million is generated through the Government Revenue benefits stream. The breakdown of this figure is as follows: £1 million in JSA reduction, £4.1 million in additional income tax, £3 million in additional employees NIC and £2.7 million in additional employers NICs.
For a per person figure we can divide the £10,600,000 by the number of people 508,000 = £20.87 or an approximate £20
If you are working with people who are unemployed, then you could use the 4,300 estimated unemployed people who are trained per year figure to estimate the benefit just for this group. For a per person figure only for those who are unemployed who may then become employed because of gaining digital skills we can divide the £10,600,000 by the 4,300 estimated unemployed people who are trained per year = £2,465.12 or an approximate £2,465
9. Environment
By increasing digital skills across the population CO2 emissions are likely to fall because of more people having the ability to work remotely.
For most jobs which are capable of being conducted by employees working from home, basic digital skills are a requirement to complete tasks and remain connected to employers and colleagues. Those who are digitally excluded are unable to fill these roles, and as a result will be unable to cut their personal CO2 emissions from commuting in this way.
Cebr estimates that the UK population will emit approximately 6.2 thousand tonnes of CO2 less in 2023 and 62.3 thousand tonnes less in 2032, as a direct result of achieving digital inclusivity in the UK by 2032. Cebr finds that £1.6 million is saved in 2023, increasing to £12.7 million in 2032 through the cumulative increase in people having been trained.
For a per person figure we can divide the £1,600,000 by the number of people 508,000 = £3.15 or an approximate £3
If you are working with people who are unemployed, then you could use the 4,300 estimated unemployed people who are trained per year figure to estimate the benefit just for this group. For a per person figure only for those who are unemployed who may then become employed because of gaining digital skills we can divide the £1,600,000 by the 4,300 estimated unemployed people who are trained per year = £372.09 or an approximate £370
Build on your silver estimations, with actual evidence from your stakeholders. Use this evidence to calculate your value creation estimations.
For Gold, you will need actual evidence from the group you are working with. A good starting point for digital skills is to survey the groups using the Essential Digital Skills framework to assess their digital skills before the training / upskilling activities, and after these activities to assess their actual progression. Use this progress to calculate the equivalent value benefits under each benefit category.
For more information please visit Gold: Surveys and measurements of actual results.
Support in developing your Gold survey approach is available through the Measure Up partners, so please do reach out to Impact, State of Life or PRD.
Build on your Gold, plus:
We can use the estimations of those that would have gained digital skills anyway from the Cebr report and discount this from the Gold figure calculations for our primary data results.
Value Type: | Outcome |
What's this?
This is the type of value. Some values are outcomes, which means many different interventions might lead to them, others are specific interventions that have a set value. |
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UN SDG Categories: |
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What's this?
The UN Sustainable Development Goals are global goals adopted in 2015 for all signed up nations to achieve for us to have a sustainable global future by 2030. There are 17 Goals that address the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace and justice. The Goals are all interconnected, and in order to leave no one behind, it is important that we achieve them all by 2030. |
PN06/20 Categories: |
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What's this?
PPN 06/20 Taking account of social value in the award of central government contracts introduced the Central Government Social Value Model in 2020 which all Central Government contracting authorities must use in their in scope procurements. It consists of 5 themes, 8 policy outcomes, and 24 Model Award Criteria which outline key priority areas to achieve more social value. |
Measure Up empowers you to measure the impact you’re having numerically. We recommend that numeric reports are backed up with stories and other types of evidence to help illustrate, in human terms, the impact that’s being made on individuals.
We recommend seeing consent from one or more participants in your intervention to collect and tell their stories. This should include a little background on the participant, a summing up of life before the intervention, the human impact of the intervention, and the longer-term (if known) impact on the person’s life outside of and after the intervention.
Providing photographs, audio recordings, video interviews or even artefacts from the intervention (for example, writing, paintings, music, etc, from creative interventions) can add more colour and convey the emotional impact of interventions more directly.
In some cases, it’s appropriate to anonymise or abbreviate the personal information of case study participants. No story should be published or shared without the recorded consent of the individual(s) it concerns. Individuals continue to own the rights to their stories, and if they request you stop sharing the story or making it available online, you should do so promptly and without the need for justification.
Measure Up is an open, collaborative and transparent. If you have any suggestions or feedback on our pragmatic, recommended approach to measuring and valuing social value, including wellbeing, economic, and fiscal impact, and effects on our environment, please get in touch so we can share and discuss this at our next Advisory Group meeting.
We want to empower anyone to perform and improve their impact measurement – without needing a degree in economics.
If you need any more help or just someone to do the legwork for you, we can help signpost you to software, training and consultancy to help you get to grips with the impact you’re having.