UK Consumer Digital Index 2019 - The UK's largest study of transactional, behavioural and attitudinal research including the new Essential Digital ...

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UK Consumer Digital Index 2019 - The UK's largest study of transactional, behavioural and attitudinal research including the new Essential Digital ...
UK Consumer
  Digital Index

The UK's largest study of
transactional, behavioural
and attitudinal research
including the new Essential
Digital Skills measure
UK Consumer Digital Index 2019 - The UK's largest study of transactional, behavioural and attitudinal research including the new Essential Digital ...
Lloyds Bank Consumer Digital Index 2019

The Consumer Digital Index is now in its                11      DIGITAL BRITAIN                                       31
                                                                                                                       	ESSENTIAL DIGITAL SKILLS FOR WORK
fourth year. It uses the behavioural and                        12   Benchmarking digital capability                           32 Overview
transactional data of one million consumers
to build a view of digital capability in Britain.               13   Forecasting digital capability                            34 Skill and task level results
This year it also includes the first measure of                 14   Online activities                                         36 Sector results
UK Essential Digital Skills for life and work.                  16   The ‘Digital Dividend’
Findings from the report inform international                   17   Online money management                            37 UK ESSENTIAL DIGITAL SKILLS
and UK policymakers, large corporates and
the third sector as all groups work to close the
digital divide.
                                                        18      THE DIGITALLY DISADVANTAGED                           38       UPSKILLING DIGITAL BRITAIN
                                                                19 Digital Foundation skills                                   39 Progress since 2018
                                                                21 The ‘Offline’ profile                                       40 Digital advice and training
4 FOREWORDS                                                     22 Barriers to moving online                                   41 Motivations to improve
6	CREATING THE UK CONSUMER                                     24	Demographic spotlight: disability
   DIGITAL INDEX                                                    and ethnicity                                       42 CALLS TO ACTION
7 SEGMENTATION METHODOLOGY                                      25 Benefit claimants and digital capability             43 LLOYDS BANK ACADEMY
   METHODOLOGY                                           26     ESSENTIAL DIGITAL SKILLS FOR LIFE                     44       APPENDIX
10 KEY FINDINGS                                                 27 Overview
                                                                28 Skill and task level results

                                                                                New in 2019

      Occupation, ethnicity,                        Essential Digital Skills                        Essential Digital Skills                    Analytic forecasting of
     disability demographics                               for life                                       for work                              Digital Britain in 2030

UK Consumer Digital Index 2019 - The UK's largest study of transactional, behavioural and attitudinal research including the new Essential Digital ...
Lloyds Bank Consumer Digital Index 2019

Thank you to our partners

                                                     Improving lives through digital

UK Consumer Digital Index 2019 - The UK's largest study of transactional, behavioural and attitudinal research including the new Essential Digital ...
Lloyds Bank Consumer Digital Index 2019


                                                                                                                                                                        “It is through partnerships,
                                                                                                                                                                        collective action and industry
                                                                                                                                                                        support that we can make
                                                                                                                                                                        a real difference and help
                                                                                                                                                                        Britain prosper.”

                                                  Stephen Noakes
                                                  Retail Transformation Managing Director,
                                                  Lloyds Banking Group

       t Lloyds Banking Group, I am proud to      With this in mind, the findings of the 2019 UK                 We are delighted that the Department for               Online safety and security concerns are prevalent
       lead the Retail Transformation division,   Consumer Digital Index are incredibly powerful.                Education is using this framework to underpin          across the online population too; over one-third
       helping colleagues in our branch           Our behavioural data sample of one million                     a new adult digital skills entitlement, formally       of UK consumers do not have the skills they need
network and telephony centres face into the       nationally-representative customers outlines the               recognising that digital skills are just as crucial    to keep themselves safe.
changing needs of customers and communities.      changing state of Digital Britain. Compared to                 as numeracy and literacy.
                                                                                                                                                                        On the whole, the 2019 UK Consumer Digital Index
We consider a number of different factors when    2018, there are 1.8 million more people who have
                                                                                                                 This cannot come at a better time. With UK             finds that while more people are doing more
designing products and services;                  the highest digital capability. The 31.5 million
                                                                                                                 productivity in mind, it is concerning to see that     online, a concerning proportion of the population
                                                  people who benefit from being ‘Digital First’ enjoy
• How can we enable our customers to self        time savings, financial savings, and are more likely
                                                                                                                 53% of UK employees do not have the Essential
                                                                                                                 Digital Skills required for the workplaces of today
                                                                                                                                                                        are lacking the skills they need to truly succeed.
                                                                                                                                                                        We hope that you will find this report informative,
  serve when they wish?                           to have greater ambition to learn and grow.
                                                                                                                 and tomorrow. 11.9 million (22%) people do             and importantly, a driver to take action on the
• How can we create seamless experiences         As well as analysing what they are doing in their              not have the skills for everyday life – the ability    digital skills agenda. It is through partnership,
  for customers?                                  day to day, we also seek to understand what they               to manage money online, engage in government           collective action and industry support that we can
• How can we support the most vulnerable         are able to do. This year, 4,000 UK citizens were              services and find a job online – and there are         make a real difference and help Britain prosper.
  in society?                                     also interviewed face-to-face to provide the first             4.1 million adults in the UK still yet to go online;
                                                  ever view of the UK's Essential Digital Skills. In 2018,       75% of which have indicated that ‘nothing’
• How can we empower our communities with        Lloyds Bank were proud to work with government                 could motivate them to change. 2018 data first
  the skills they need to thrive?
                                                  departments and partners to design this new                    evidenced a motivational barrier, but this year's
                                                  UK-wide benchmark for the digital skills needed for            data reveals that cybersecurity and fraud fears
                                                  life and work, both today and tomorrow.                        are really the underlying concern.

UK Consumer Digital Index 2019 - The UK's largest study of transactional, behavioural and attitudinal research including the new Essential Digital ...
Lloyds Bank Consumer Digital Index 2019
                                                                                                           Forewords                                                                                                              u

                                                                                                                                                                                    “We are delighted that Lloyds
                                                                                                                                                                                    Banking Group continue to play
                                                                                                                                                                                    a leading role on digital skills and
                                                                                                                                                                                    that we are partnering on this
                                                                                                                                                                                    vital agenda, so no one is left
                                                                                                                                                                                    behind as we build a Britain fit for
                                              Rt Hon Anne Milton MP                                                                 Margot James MP                                 the future.”
                                              Minister for Apprenticeships                                                          Minister for Digital
                                              and Skills                                                                            and the Creative Industries

        e would like to thank Lloyds Banking              The findings will help the continued work in                  The new standards have been subject to                      In addition, we recently awarded £1.4 million
        Group for another robust and insightful           government, industry and by other partners.                   extensive consultation and input from a wide                across two funds aimed at testing new approaches
        report assessing the financial and digital        This work is brought together through national and            range of education, industry and digital inclusion          to digital skills and inclusion: £1 million was
capacity of people in the UK.                             local Digital Skills Partnerships, which are working          stakeholders. The new standards will form the               awarded in grants for initiatives which specifically
For the first time, this report provides separate         towards the UK being a world-leading digital                  basis of new Essential Digital Skills qualifications        aim to help people take up digital roles, and a
assessments of the number of adults without the           economy that works for everyone.                              that adults with no or low digital skills will be able to   further £400,000 to help older and disabled people
digital skills required for life, and those without                                                                     study free of charge.                                       get life-changing digital skills.
                                                          Together, we are making substantial progress.
the digital skills required for work.                     Our Future Digital Inclusion programme, funded                We are setting up local Digital Skills Partnerships         We are delighted that Lloyds Banking Group
The report continues to shine a light on the need         by the Department for Education and managed by                in six trailblazer regions because we want to               continue to play a leading role on digital skills
to tackle digital exclusion, with one in five people      the Good Things Foundation has supported over                 grasp opportunities to increase digital capability          and that we are partnering on this vital agenda,
lacking the Foundation skills to get online, and          one million adults develop their digital skills, with a       through regional partners. Three are already up             so no one is left behind as we build a Britain fit for
one in four lacking at least one of the five Essential    focus on supporting key groups facing digital and             and running in Lancashire, Heart of the South West          the future.
Digital Skills.                                           social exclusion set out in this report.                      and the West Midlands. Two more launched this
                                                                                                                        month in Cornwall & Isles of Scilly and Cheshire &
It also provides us with valuable insight into the        We are also taking steps to ensure that courses
                                                                                                                        Warrington, and in June our sixth trailblazer will
digital skills which adults need to gain confidence       adults study cover the full range of digital skills
                                                                                                                        launch in the South East, taking the total coverage
and experience; for example, in communicating and         needed today and in the future. We recently
                                                                                                                        to more than ten million people.
collaborating online, being safe and legal online,        published new national standards setting out the
and using digital to improve personal effectiveness.      digital skills adults need for life and work.

UK Consumer Digital Index 2019 - The UK's largest study of transactional, behavioural and attitudinal research including the new Essential Digital ...
Lloyds Bank Consumer Digital Index 2019

                                  Creating the UK Consumer Digital Index

                                      Of the one million sample,                                                       The                                Partners ensure this
                                      2,700 people are selected for                                                    insight is                         data-rich report is fit
                                      a telephone interview.
                                                                                                            4.         generated.                         for purpose.
                                                                                                            The Lloyds Bank                                             The report is quality assured

           The Consumer
                                      In the
                                                             A second and separate
                                                             survey is also commissioned
                                                             to fulfil our commitment
                                                             as the lead provider of
                                                                                                            team uses a blend
                                                                                                                                                           É            by our Group Analytics data
                                                                                                                                                                        scientists to ensure all statistics
                                                                                                                                                                        are robust. It is also assured
                                      interview, they                                                       of analytical                                               contextually by external experts
                                                             the Essential Digital Skills
           Digital Index begins       share their
                                                             measure. 4,000 UK citizens
                                                                                                            tools and skills to                                         and internal thought leaders in
           with the creation          thoughts,
                                                             are interviewed face-to-face
                                                                                                            interpret the data                                          analytics, security, marketing
                                      feelings and                                                          and draft the report.                                       and legal.
           of a sample of one         attitudes on
                                                             to understand the digital

1.         million consumers.                                skills they use day to day.
                                      their digital
                                                             2,000 are also interviewed
                                                             to determine the skills they
This sample is generated from                                use at work.
an anonymised behavioural
dataset of 30 million people
across Lloyds Bank, Halifax
                                                                                                                                6.                       The Index is published.

                                                                                                                                The insight is published to stakeholders
and Bank of Scotland
                                                                                                                                across government, academia and
customer bases.
                                                                                                                                industry to facilitate insight-led change
                                                   Findings are data-matched.                                                   in the UK. Lloyds Banking Group then
A diverse dataset ensures
that the sample created is                                                                                                      uses the insight to underpin initiatives
representative of the UK.                                                                                                       such as the Lloyds Bank Academy and
                                      Once the different           The power of this study is the ability                       the network of 23,000 Digital Champions.
                                      research inputs have         to understand what people do                                 Lloyds Banking Group has made a
                                      been collected, the          (one million behavioural dataset),                           commitment to provide face-to-face
                                      findings are matched         think and feel (2,700 telephone                              training to 1.8 million individuals, small
                                      to the behavioural           interviews), and what they are able                          businesses and charities between 2018
                                      dataset.                     to do (4,000 face-to-face interviews).                       and 2020.

UK Consumer Digital Index 2019 - The UK's largest study of transactional, behavioural and attitudinal research including the new Essential Digital ...
Lloyds Bank Consumer Digital Index 2019

                                                         Segmentation methodology

Digital capability segmentation
As described on page 6, the data of one         Figure 1. Digital capability behavioural Segments 1 to 5 and updated behavioural segmentation
million UK consumers is collated and
anonymised. Based on the consumers'
digital behaviours and usage, they are
placed into a five-step digital capability                                                                                                              High
segmentation. These segments are                                                                                                                                                         5
cumulative, those in Segment 5 will also                                                                             Established                          4
have the behaviours of prior segments.
                                                                                      Getting started                      3                                                 As Segment 4. Plus: regularly
This year the segmentation has been                                                                                                                                          managing money online and
updated. Building on the previous Segments                   Passive                                                                          As Segment 3. Plus:            using multiple digital devices
1 to 5, new behaviours are now included                                                                                                       managing money digitally
which allow for an improved three-tier                           1                                             As Segment 2. Plus:
segmentation that reflects people's evolving                                                                   shopping and streaming
digital capability. The additional behaviours                                     As Segment 1. Plus: basic    video online
now underpinning the segmentation are:                                            digital communication
                                                     No evidence of digital
• 1. Use of FinTech services                        behaviours
  (financial service providers that leverage
  new technology)
• 2. Preference shown for digital                                                                                                  Digital First – Segment 3 / Segment 4 / Segment 5
                                                                                                                                 + preference for digital transactions and/or FinTech usage
On page 12 of this report, the changes to
Segments 1 to 5 are shown over time for
benchmarking. Digital capability analysis                                                                                      Digitally Competent – Segment 3 / Segment 4 / Segment 5
                                                        Digitally Disengaged – Segment 1 / Segment 2
throughout the rest of the report uses                                                                             + preference for branch transactions and/or, no banking transactions/or FinTech usage
the updated behavioural segmentations:
Digitally Disengaged, Digitally Competent
and Digital First.

UK Consumer Digital Index 2019 - The UK's largest study of transactional, behavioural and attitudinal research including the new Essential Digital ...
Lloyds Bank Consumer Digital Index 2019

                                                            Essential Digital Skills methodology

The new Essential Digital Skills framework is a significant                  Working in collaboration, the framework was put out for
evolution from its predecessor ‘Basic Digital Skills’.                       public consultation and over 400 cross-sector organisations   Figure 2. Visual overview of the Essential Digital Skills framework
Since 2016 Lloyds Bank had measured the Basic Digital Skills                 provided their inputs on the practical application and
of the UK in the annual Consumer Digital Index. Last year                    execution of the framework. Thanks to these cross-sector
Lloyds Bank and the Tech Partnership worked with the                         inputs the new Essential Digital Skills for work measure is
Department for Education and the Department for Digital,                     relevant to the significant majority of the UK workforce.
                                                                                                                                                                                                                             BE S
                                                                                                                                                                                 LINE                                            AFE
Culture, Media & Sport to comprehensively update the                         An overview of the finalised framework components*                                             T ON                                                    , LE
framework to ensure it fully reflects the range of skills people                                                                                                         EN                                                             GA
                                                                             is provided in figure 2. The next page highlights the key                                                                                                    LA
need to safely benefit from, participate in and contribute to                                                                                                    N   FID                                                                                     ND
                                                                             changes to the framework.                                                         CO
the digital world of today and the future.


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*Department for Education, 2018,

UK Consumer Digital Index 2019 - The UK's largest study of transactional, behavioural and attitudinal research including the new Essential Digital ...
Lloyds Bank Consumer Digital Index 2019
                                                                                      Essential Digital Skills methodology                                                                             u

Key changes to the new framework
The new Essential Digital Skills                  Figure 3. The three progressive tiers of the Essential Digital Skills framework
framework now comprises of three tiers
and is progressive:
1. Foundation skills
    People must be able to do all seven tasks

    as a prerequisite
2. Essential Digital Skills for life
    Individuals must have all Foundation skills
    to be eligible and be able to do at least

                                                     What are the fundamentals required
                                                                                                             §       Life

                                                                                                             What are the digital skills that

                                                                                                                                                              hat are the digital skills that
    one task from all five of the skills             to get online?                                          a UK citizen now needs?                         a UK citizen needs for work?
3. Essential Digital Skills for work                ѐ   I can turn on a device                             ѐ   I can upload a photo                       ѐ   I use digital collaboration tools at work
    Individuals must be able to do at least
    one task in each of the life skills, be in
                                                     ѐ   I can use an app                                   ѐ   I can use word processing applications     ѐ   I set up and manage an account on a
                                                                                                                                                                  professional network e.g. internally/
    employment, and be able to do at least           ѐ   I can use a mouse                                  ѐ   I can manage my finances and
    one task in each of the work skills                                                                           transactions online
In total there are now 43 tasks (up from 11 in
                                                                                                                                                             ѐ   I manage digital records and files
the previous Basic Digital Skills framework),
as well as a comprehensive section focused                                            Seven tasks                                        Twenty nine tasks                                 Seventeen tasks
on ‘Being Safe and Legal Online’.

UK Consumer Digital Index 2019 - The UK's largest study of transactional, behavioural and attitudinal research including the new Essential Digital ...
Lloyds Bank Consumer Digital Index 2019

                                                                                          Key findings
       Digital Britain                                                            The Digitally Disadvantaged                                                  Skills in the workforce
Since 2018, there are 1.8 million more                                     11.9 million people (22%) do not have                                         More than half of UK employees (53%)
people with the highest digital capability                                 the Essential Digital Skills needed for day-to-day                            do not have the digital skills needed for work
                                                                           life in the UK

 Overall there are more people        Compared to those with less           A further 19% of the UK             • 16% of benefits claimants               4% of the population uses
                                                                                                                                                          5                                   • Unemployed people are 64%
 online than ever but 37% of          digital capability, being Digital     can not do fundamental                   are Digitally Disengaged             the Internet to work, a 15%           more likely to lack Essential
 the UK are still at risk of being    First creates both economic           Foundation skills such as:              (down two percentage points           increase since 2018 (47%)             Digital Skills for life than the
 left behind                          and social value                      • Six million (11%) cannot             since 2018)                           • However, half of UK                UK average (36% vs. 22%)
 • 31.5 million (62%) are            • 75% are saving money online          turn on a device                  • The North East of England                employees (53%) do not             nly one-third (34%)
   Digital First (use multiple
   devices, shop and stream
                                        including paying up to 6%
                                        less a year for utilities
                                                                            • 7.1 million (13%) cannot             has consistently had the
                                                                                                                    highest proportion of its
                                                                                                                                                            have the Essential Digital
                                                                                                                                                            Skills needed for work (e.g.
                                                                                                                                                                                              of employees say their
                                                                              open an app                                                                                                     workplace gives them digital
   online, and prefer to manage
   money digitally)
                                      • 84% connect with family            Cybersecurity concerns
                                                                                                                    population who are Digitally
                                                                                                                    Disengaged – external
                                                                                                                                                            able to avoid suspicious
                                                                                                                                                            links and pop-ups, share
                                                                                                                                                                                              skills support
                                        and friends online
                                                                            underpin ‘motivational barrier’                                                                                   • Working people are not
 • 12.7 million (25%) are            • They are 1.7 times more                                                    research shows that this                documents by attaching
                                                                                                                                                                                                taking the safety and security
   Digitally Competent (digital         likely to have improved             • 4.1 million adults (8%) in the       region has more young                   to an email, use online
                                                                                                                                                                                                skills they are using day to
   usage but prefer face to                                                   UK are offline. Three million         people not in education,                payments etc.)
                                        their job prospects                                                                                                                                     day into their workplaces.
   face support)
                                      • 57% have improved their
                                                                              (75%) of them report having           employment or training, all
                                                                                                                    factors which correlate to
                                                                                                                                                          • One-third of the workforce        80% of people can do this
                                                                              no interest in being online,
 • 6.1 million (12%) are Digitally     employability through                 driven by cybersecurity fears         digital capability
                                                                                                                                                            lacks cybersecurity skills          life skill but only 66% apply
   Disengaged (little or no digital     being online                          and concerns                                                                • 61% of people earning more         this at work
   behaviours). This is down                                                                                    New – Spotlight on disability               than £25,000 have essential
                                      • They are nearly twice as likely
   from 7.6 million (15%) in 2018
                                        to have disposable income,
                                                                            Socio-economic factors              • People with a disability                 workplace skills, significantly
                                                                                                                                                            higher than those earning
                                                                            influence digital behaviours            are 35% less likely to have
 By 2030, it is forecast that           with an extra £800 to spend
 4.5 million (8%) UK adults will        per year (those with lower          • Almost half of the Offline           Essential Digital Skills for life,      less than £11,499 where only
                                                                                                                                                            one-quarter have these skills
 remain Digitally Disengaged            incomes who are Digital First         (48%) are under 60 years              but in the workplace they are
 • The proportion of Offline UK        are also more likely to have          old, challenging the                  equally skilled                       • Employees from the
   citizens continues to decline        more disposable income)               assumption that the Offline       •    nly 11% of people with
                                                                                                                    O                                       Manufacturing, Construction,
                                                                                                                                                            Utilities and Retail sectors
                                                                              are mostly elderly
   (8% in 2019 vs. 9% in 2018)        • 42% are managing their                                                     a disability use assistive
 • There has been a 11%                physical and mental health          • Nearly half of Offline               technology (screen readers              are the least digitally skilled

   increase in the number of            through being online                  people (47%) come from                etc.) when going online and           • West Midlands has the least
                                                                              a low income household                one-fifth (21%) say there               digitally skilled workforce
   over 60s going online since
                                                                                                                    is no suitable technology
   2018; this group are going
                                                                                                                     for their condition to help
   online to shop
                                                                                                                    them go online

Chapter One


The following chapter utilises behavioural and survey data to measure
digital usage, engagement and attitudes in the UK. Digital behaviours
are analysed to understand digital activities and consumer trends:         Carole Moate
                                                                           55, Norfolk
the complementary skills survey helps to understand the tasks people
                                                                                    arole has been using the Internet for almost 20 years and
are able to do.                                                                     recently found that she can also use it to keep in touch
                                                                                    with her daughter who moved to Florida, making
                                                                           it cheaper and easier.
                                                                           Carole’s digital skills have grown organically and have been born out
                                                                           of a desire to keep up with the changing world. Upon being diagnosed
DEBBIE FORSTER MBE SAYS…               DID YOU KNOW…                       with Coeliac disease, she has used a range of digital tools to learn

                                       	By 2030
                                                                           about and manage her condition.
	“This report indicates the                                              “When I was first diagnosed the doctor rang me up and told me
   beginnings of progress                                                  I've got Coeliac disease, I thought ‘what the hell is Coeliac disease?’.
   and outlines pathways               	it is forecast that 4.5 million   As soon as I got off the phone I went straight to my desk, and googled
                                                                           Coeliac disease; I spelt it wrong, the American way, but I still got what
   to success.”                          (8%) UK adults will remain        I needed. I found out I was entitled to a dietitian and gluten-free

  CEO, Tech Talent Charter
                                         Digitally Disengaged              produce on prescription. I also found out about Coeliac UK through
                                                                           being online.”

Lloyds Bank Consumer Digital Index 2019
                                                                                                 Digital Britain                                                                          u

                                                          Benchmarking digital capability

UK digital capability continues to rise
                                                           Figure 4. Year-on-year movements in the proportion of people in digital capability Segments 1 to 5, 2016 to 2019          N = 1,001,840
Since 2016, Lloyds Bank has benchmarked UK digital
capability using a behavioural dataset of more than
one million people.                                        Key     Segment 5 – regularly managing money online and using multiple digital devices
This is segmented into five groups which range                     Segment 4 – managing money digitally
from the lowest level of digital capability, Segment 1,                                                                                                                         55%
                                                                   Segment 3 – shopping and streaming video online
to the highest level Segment 5 (see page 7 for                     Segment 2 – basic digital communication                                                 52%
the methodology).
                                                                   Segment 1 – no evidence of digital behaviours
Figure 4 shows that compared to 2018 there are
now 1.8 million (3%) more adults in Segment 5,
now equivalent to over 27.9 million people (55%).                                                                             42%
Since 2018 there has also been a three percentage                                     40%
point reduction in Segment 1; there are now 5.1 million
people (10%) in this segment.
Looking at longitudinal movements within the
five segments (see Appendix 1):
• Each year 16% move from Segment 1 to Segment 3
• Once in Segment 3, few people (7%) then progress                                   24%
  to Segment 4 (managing money online)                                                                                        22%

• Around 9% move from Segment 4 to 5 (as they start                                  19%
                                                                                                                              21%                          18%                  18%
  using multiple digital devices)
• Just under one-third in Segment 5 drop back down                                                                           13%

  to Segment 4                                                                                                                                                                  15%

ш 1.8 million                                                                          3%

                                                                                                                              2%                            2%                  2%
           Compared to 2018, there are 1.8
           million more people in Segment 5
                                                                                       2016                                  2017                         2018                 2019

Lloyds Bank Consumer Digital Index 2019
                                                                                                     Digital Britain                                                                                      u

                                                                Forecasting digital capability

This is the fourth year in which            Forecasting digital capability
Lloyds Bank has benchmarked the                                                         Figure 5. Forecast movements in the proportion of people in the updated digital capability segments,          N = 1,001,840
                                            until 2030
digital capability of consumers in                                                      2019 to 2030
                                            For the first time, and using industry
the UK.
                                            standard predictive modelling               Key         Digital First
Incorporating new digital behaviours        techniques, Lloyds Bank data
(see page 7 for the methodology) has                                                                Digitally Competent
                                            scientists were able to forecast what
allowed for a more comprehensive            digital capability would look like over                 Digitally Disengaged
yet simplified view of digital capability   the next ten years (see Appendix 2).
in the UK.
                                            Figure 5 shows the results which
                                                                                                                                                                                               69%          69%
Nearly two-thirds of UK adults              forecast that if no further interventions                                                                              67%       68%       68%
                                                                                                                                       65%    66%       66%
are embracing digital in their              occur, the population with the highest
                                                                                                           63%           64%    64%
                                            level of digital capability – the Digital         62%
everyday lives
                                            First – will increase to 69% over the
This year 31.5 million (62%) adults in
                                            course of the next decade. Both the
the UK are Digital First with the highest
                                            Digitally Competent and the Digitally
levels of digital capability (figure 5).
                                            Disengaged groups will decline.
12.7 million (25%) people are Digitally
                                            However in 2030 there will still be 8%
Competent as they are using digital
                                            of the adult population (a predicted
day to day but are yet to fully embrace
                                            4.5 million people) who show little or
the digital world. Lastly 6.1 million
                                            no signs of digital behaviour, only
(12%) people are Digitally Disengaged
                                            a four percentage point decrease.
showing little or no signs of digital
behaviour and are likely to be offline.
                                                                                              25%          25%           25%    24%    24%    24%       24%        23%       23%       23%     23%          22%

          8%                                                                                  12%          12%           12%    11%    11%    10%       10%        10%       9%         9%     9%            8%
          By 2030, it is forecast that 4.5 million (8%) of UK adults
          will remain Digitally Disengaged with little or no
          digital behaviours
                                                                                           2019           2020           2021   2022   2023   2024      2025      2026      2027       2028    2029         2030

Lloyds Bank Consumer Digital Index 2019
                                                                                                              Digital Britain                                                                                          u

                                                                                            Online activities

Each year, the Consumer Digital
Index examines the extent to which                  Figure 6. For which of the following do you use the Internet? 2019                                                                                                 N = 2,490
UK Internet users are undertaking
specific activities online.                         Key % Percentage difference, 2019 vs. 2016
                                                            N/A New option in 2019
 Email is still one of the key reasons                         2019                                                                          NEW:      Online gaming has         NEW:
 that UK citizens log on – 92% of                                                                                                 One-third (34%)      increased by 19%          Nearly one-quarter (23%)
 those online use it as a key channel                                                                                              are applying for    – external research       are going online for physical/
 for communication                                                                                                                      jobs online    shows that 2018           mental health purposes,
                                                                                                                                                       was the biggest year      e.g. mindfulness apps, step
                                                                                                                                                       for the UK games          count tracking, wearable
     -3%                                                                                                                                               market in terms of        technology. This rises to 29%
     92%             -5%                                                                                                                               consumer spend*           for those with a disability
                     86%                                                                                                                                                         (see Appendix 3)
                                      +7%             N/A
                                      75%             75%

                                                                                     -19%      +2%           -4%
                                                                                      57%      56%           55%

                                                                                                                               40%           N/A        N/A          +19%
                                                                                                                                             34%        33%           32%
                                                                                                                                                                                 N/A           N/A
                                                                                                                                                                                 23%           23%
                                                                                                                                                                                                             N/A       N/A
                                                                                                                                                                                                             9%        8%

      a                e              ·                «              ė                          Y           y                  ѐ             Á                      é            Ï            ³              G        §
     Email          Buying           Social         Using          Posting/     Learning     Streaming/    Accessing           Rating      Applying     Solely      Online      Selling     Managing      Accessing   Online
                  products/          Media          online          sharing                 downloading       local          products/      for jobs   content      games      products     my physical   universal   dating
                   services                       messaging        photos or                    media        council          services                 for work               or services    or mental      credit
                                                   services         videos                                information                                                                         health

*UK Interactive Entertainment, 2018,

Lloyds Bank Consumer Digital Index 2019
                                                                                                   Digital Britain: Online activities                                                                                                                u

As evidenced in the previous UK Consumer
Digital Index reports, a key correlating factor          Figure 7. Proportion of people who use the Internet for the listed purposes. Split by age, 2019                                                                                             N = 2,490
to overall digital capability is age. This year's
findings are no different:                               Key        Keeping contact via social media                  Buying products/services           Learning

• 2% of 18-24 year olds are offline                                 Accessing local council information               Applying for jobs                  Managing my physical or mental health

• 87% of 18-24 year olds are Digital First
• 33% of 70-79 year olds are offline                                                                            26%                       39%                                   60%          67%                                     87%       93%

• 26% of 70-79 year olds are Digital First               18-24                                                    §                       y                                                                                          Ï          «
As shown in figure 7, applying for jobs digitally and
                                                                                                                26%                                                   54%       62% 63%                                               88% 91%
taking on learning opportunities are both activities
which vary according to age; 60% of 18-24 year           25-29                                                    §                                                                    y                                               « Ï
olds use the Internet to find a job compared to only
24% of those aged 50-59.                                                                                               29%                              47%                           63% 66%                                  84%       89%
                                                         30-39                                                          §                                                              y                                        «          Ï
However, managing physical and mental health as
well as online shopping are consistent across age
groups. This suggests that there may need to be                                                                   27%          34%                                        58% 59%                                 78%                87%
an intervention in order to drive older generations      40-49                                                     §                                                      y                                         «                Ï
into using the Internet to find jobs and for learning.
This may be done through driving demand, or                                                       19%       24%                                                51% 54%                     66%                              83%
improving accessibility and customer experience in
                                                         50-59                                      §                                                                 y                      «                               Ï
these areas.
For three-quarters of the UK online population,                                  10%       15%                                                       46%         52%          59%                                           83%
social media is a key channel to keep in touch
                                                         60-69                              §                                                                     y             «                                            Ï
with others. Research conducted at Michigan
State University on the benefits of technology on
older adults evidences that higher technology                               7%                   18%                          32%         39% 41%                                                                         82%
use is associated with greater wellbeing, fewer          70-79                                    §                                       y «                                                                              Ï
depressive symptoms, and reduced loneliness*.
With more than two million over 65s suffering
from loneliness, growing digital adoption of this        *William J Chopik, 2016, ‘The benefits of social technology use among older adults are mediated by reduced loneliness’, Cyberpsychology Behavior and Social Networking, vol. 19, no. 9, pp. 551-556.
activity could help.**                                   **NHS, 2019,

Lloyds Bank Consumer Digital Index 2019
                                                                                                       Digital Britain                                                                             u

                                                                            The ‘Digital Dividend’
The 2016 UK Consumer Digital Index established
that the average UK citizen could save £744             Figure 8. Here are some things people sometimes say about going online. Do you agree with the following? (Response ‘Yes’)                   N = 2,490
by being online. This illustrated how those with        Split by digital capability segmentation, 2019
greater digital capability extract more benefits from
going online – the ‘Digital Dividend’.
Using the 2019 behavioural data, analysis
reveals that 31.5 million (62%) UK adults are                                                                                                                    % difference
Digital First, 7% of whom are using FinTech                                                                                                                       between
                                                                                                                              2019        Digitally   Digital                       53% recognise
services (see page 7 for the full
                                                                                               2016           2018         UK average   Disengaged     First                        that being online
segmentation methodology).
                                                        It helps me improve my work
                                                                                                                                                                                    can improve their
One particular area where there is a significant                                                 –                –           53%          33%         57%          73%             job prospects
difference is in utilities spend. The transactional
data finds that Digital First consumers can save        It helps me save money                  70%              69%          71%          49%         75%          53%             71% of the UK save
up to 6% on their annual gas, water and                                                                                                                                             money by being online
electricity bills (see Appendix 4).                     It helps me manage and improve
                                                                                                 –                –           39%          28%         42%          50%
                                                        my physical/mental health
This year the data shows that the Digital First
population receives much greater benefits from the      It has helped me find and
                                                                                                 –                –           46%          33%         49%          48%
Internet than the Digitally Disengaged population.      get a job

                                                        It makes it easier to organise
                                                                                                63%              76%          77%          56%         82%          46%
                                                        my life

                                                        It helps me feel more like part
                                                                                                 –               48%          46%          35%         48%          37%
                                                        of the community
                                                                                                                                                                                    The Digital First are
                                                                                                                                                                                    34% less likely to feel
                                                        It helps me feel less alone              –               42%          38%          29%         39%          34%
                                                                                                                                                                                    alone because of their
          Compared to the Digitally                                                                                                                                                 digital usage
                                                        It helps me connect better
          Disengaged, the Digital First                 with friends and family
                                                                                                74%              82%          80%          63%         84%          33%
          are 73% more likely to agree
                                                        I use the Internet outside
          that going online helps them                  of work but not for job
                                                                                                 –               53%          46%          37%         45%          22%
          improve their work and                        It helps me save time, so I can
          employability prospects                                                               63%              72%          67%          59%         69%          17%
                                                        enjoy myself more

Lloyds Bank Consumer Digital Index 2019
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                                                                          Online money management

Data on the previous page has shown that
71% of UK consumers are saving money online.                     Figure 9. Proportion of people who manage their                   Figure 10. The age distribution of those who are Digital First and Digitally Competent, 2019
People in the Digital First group are the most                   money through different online channels.
likely to say this (75%) and this is due to their                Split by digital capability segmentation, 2019
                                                                                                                                                                                          Key     Digital First
online money management techniques and                           Key       Digital First                      N = 1,001,840                                                                       Digitally Competent                N = 1,001,840
shopping preferences.                                                                                                                               27%
                                                                           Digitally Competent
25.8 million people (82%) choose
smartphones to manage their money
The Digital First have a clear preference for                                                                                                                     20%        20%
managing their money on a smartphone; more                                                      69%                                                                                       18%        18%
than eight in ten use their mobile and seven in ten                                                                                    16%                                  18%
use an app (figure 9).                                              58%
A far smaller proportion of the Digitally Competent                                                                                                                                                                12%
group is managing their money online and they
have different preferences for doing so. Only two                                                                                                                                         11%
in ten use a desktop computer and the same
                                                                                                              26%                                                                                    6%
proportion is using a smartphone.
                                                                          18%           19%                                                                                                                                     4%
This difference in preference is in part driven by                                                    14%                                5%
age with the Digital First group being younger than                                                                 8%
                                                                                                                                                                                                                  2%                         0% 0%
the group with less capability (figure 10). Younger                                                                                                                                                                            1%
Digital First consumers opt for smartphones to                      Desktop     Smartphone**      App         Tablet**                  18-25       26-35       36-45       46-55         56-65      66-75        76-85       86-95        Over 95
manage their money, whereas older people are
more likely to choose desktops and tablets (see
Appendix 5).
                                                                                                                                   Multi-device users are more likely to                    This year the behavioural data shows that
                                                                                                                                   benefit from the ‘jam-jar’ effect                        ‘jam-jarring’ occurs mainly for the Digital First,
           The Digital First are:                                                                                                                                                           especially those using a smartphone and another
    Almost three times more                Paying up to 6% less for               Compared to the Digitally                        The 2017 Index explored digital ‘jam-jar’ behaviour,     device (tablet or desktop). Therefore there is a
    likely than the Digitally              their utilities compared with          Competent, the Digital First are                 defined as someone moving money online from              potential opportunity to change the overdraft
    Competent to have started              the Digitally Disengaged               nearly twice as likely to have                   one bank account or savings account to another           related behaviours of the 12.7 million people who
    saving, regardless of their                                                   disposable income, with an extra                 at least three times in one month*. Findings in that     are Digitally Disengaged if they were to 'jam-jar'.
    income (8% vs. 3%) (see                                                       £800 to spend per year (see                      report illustrated how those ‘jam-jarring’ were less
    Appendix 6)                                                                   Appendix 7)                                      likely to use their overdrafts and that women and
                                                                                                                                   young people were the most likely to do this.
*Lloyds Bank UK Consumer Digital Index, 2017,
**Through internet browser or app                                                                                             17

Chapter Two

The Digitally

Data from this report reveals that 4.1 million UK adults are offline.
The following pages identify who these people are, what is stopping
them from going online and what can be done to engage them.             Alan Little
                                                                        72, Business Owner, Manchester
With this understanding, programmes can ensure that everyone
                                                                                 lan left school to work in a raincoat factory with the aim
can advance and prosper equally.                                                 of becoming a tailor. He was able to build his knowledge and
                                                                                 move onto becoming a designer where he spotted a gap
                                                                        for work-wear in the clothing market. Aged 32, he decided to start his
                                                                        own clothing business.
JAMES TAYLOR SAYS…                                                      “I felt I was being left behind and needed to get online to move my
                                                                        business forward.”
	“This report demonstrates the work that                              Prior to attending the Lloyds Bank Academy, Alan relied on his sons
   needs to be done to make sure all disabled                           to manage the digital side of his business. Part of the training Alan
   people are provided with the right skills.                           undertook improved his understanding of online security; allowing
                                                                        him to feel more confident using the Internet and encouraging
   By working in partnership we can develop                             him to continue his digital education.

   impactful policy so no-one is left behind.”
  Head of Policy, Public Affairs and Campaigns, Scope

Lloyds Bank Consumer Digital Index 2019
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                                                                    Digital Foundation skills

Digital Foundation skills are measured
as part of the Essential Digital Skills           Figure 11. Proportion of people aged 15+ that can and cannot do the Foundation tasks (prerequisite to Essential Digital Skills), 2019                N = 4,190
framework and are a prerequisite level of
skill people must have before becoming
eligible for Essential Digital Skills for life    Key     % that can do this      % that cannot do this
and work (see Chapters 3 and 4).

One-fifth of the population do not                I can use the available skills on a device (e.g. mouse, keyboard, touchscreen etc.) 91%                                                     9%
have foundational digital skills
The results show that 81% of those aged
                                                                           I can open an internet browser to find and use websites 90%                                                        10%
15+ can do all seven of the Foundation
tasks and therefore are eligible for
Essential Digital Skills for life. Nearly one-                     I can turn on a device and log in to any accounts/profiles I have 89%                                                      11%
fifth (19%) therefore cannot do all seven
Foundation tasks and cannot be assessed                          I can update and change my password when prompted to do so 87%                                                               13%
in the Essential Digital Skills for life or
work measure.
                                                                                         I can connect a device to a Wi-Fi network 87%                                                        13%
Nearly one in ten (8%) have zero
digital skills                                                I can find and open different applications/programmes on a device 87%                                                           13%
Furthermore, 8% of those aged 15+ are
unable to complete any of the Foundation                 I can use the different menu settings on a device to make it easier to use
tasks at all. This is equivalent to 4.3 million                                                                                       86%                                                     14%
                                                                                (e.g. change the font size to make it easier to read)
people and aligns to 8% of people who are
offline (see page 21).

x           The appendix includes the
            demographic profile of the 8%
            of people aged 15+ that cannot
                                                        ¢       9%                                              è        11%                                     ª         13%
                                                                4.9 million people cannot use                            Six million people                                7.1 million people cannot
            do any of the Foundation tasks                      a mouse or touchscreen                                   cannot turn on a device                           open an app
            (see Appendix 8)

Lloyds Bank Consumer Digital Index 2019
                                                                                               The Digitally Disadvantaged: Digital Foundation skills                                                                               u

Populations with zero digital skills across the UK
                                                                                Figure 12. Proportion of people aged 15+ that                  Figure 13. Proportion of people aged 15+ that can do none of                           N = 367
The North West and the East of England have the largest
                                                                                can do none of the seven Foundation tasks.                     the seven Foundation tasks. Split by region and nation, 2019
proportions of those with zero digital skills. Wales has the
                                                                                Split by age, 2019
lowest proportion of people that can do none of the seven                                                                                                                                                   The North East has
                                                                                                                                     N = 367
Foundation tasks e.g. connecting a device to Wi-Fi. However                     Key       65+          35-44                                                                                                consistently had the highest
as illustrated on page 37, they have a higher proportion of                               55-64        25-34                                                                                                proportion of its population
people lacking the Essential Digital Skills for life and work.                                                                                                                                              who are Digitally Disengaged
                                                                                          45-54        15-24
                                                                                                                                                                                                            – potentially due to a larger
One-third (35%) of people with a disability are
                                                                                                                                                                                                            proportion of young people
unable to make devices easier to use                                                                                                                                                                        not in education, employment
The Foundation task people struggle the most with is                                     16%                                   74%                                                                          or training, all factors which
accessibility – being able to change device settings to make it                                                                                8%                                                           correlate to digital capability*
easier to use, 14% cannot do this. For people with a disability,                     7%

this rises to 35%. Overall, 56% of people with a disability can                     2%
do all seven Foundation skills, this compares to 81% of the                        1%
                                                                                                                                                                                                                                     North East
overall population.
                                                                                   1%     younger                            older
                                                                                                    0 Foundation skills
                                                                                                         by age
                                                                                                                                               North West

                                                                                                                                               13%                                                                       Yorkshire & Humberside
                                                                                                                        N = 2,145 (Male)
  Figure 14. Proportion of each gender/ethnicity that can do none of the seven Foundation tasks,
                                                                                                                                               East Midlands
  2019                                                                                                                N = 2,042 (Female)
    Female                              9%         ³ ³ ³ ³ ³ ³ ³ ³ ³                                                                           West Midlands                                                                       East England

                                                                                                                                               11%                                                                                      13%
    Male                                7%         ³ ³ ³ ³ ³ ³ ³                                                                               Wales

                                                                                                                                               6%                                                                                       London
    Black, Asian or Minority Ethnic     8%         ³ ³ ³ ³ ³ ³ ³ ³                                                                                                                                                                        9%
    White                               5%         ³ ³ ³ ³ ³                                                                                   South West
                                                                                                                                                                                                                                     South East
                                                                                                                                               6%                                                                                       11%
*Parliament, 2018,

                                                                                                                                               Northern Ireland not included due to limited survey sample
Lloyds Bank Consumer Digital Index 2019
                                                                            The Digitally Disadvantaged                                                           u

                                                            The ‘Offline’ profile

                                                            ³                                                                    White                                9%
4.1 million UK adults                                     80%                                                                    BAME                        6%
(8%) have not used the
Internet within the past
                                                                                                     No significant difference     White people are 50% more
three months                                         80% are aged 50+                                   between genders          likely to be offline compared to
                                                       (see Appendix 9)                                   (see Appendix 10)       Black, Asian or minority ethnic
                                                                                                                                 (BAME) people (see Appendix 11)

Lloyds Bank findings show that 92% of
UK adults are now online, three percentage
points higher than in 2016, (figure 15).

                                                                                                    71% have no more than a
Figure 15. Proportion of people who                         16% 15%
have used the Internet in the past three                                                           secondary school education
months, 2016 to 2019
                           N = 2,715 (2019)                          9%
                                                                                                          (see Appendix 13)

              91%        91%
                                                  Three-quarters (76%) are:
                                                  retired pensioners (36%),
                                               unskilled manual workers (16%),                     Nearly one in two (47%) are           One-third (32%)
 89%                                          unemployed/long-term sick (15%),                    from low-income households             have a disability
                                               and skilled manual workers (9%)                       (medium 16%, high 9%,               (see Appendix 15)
                                                       (see Appendix 12)                              prefer not to say 28%)
   2016       2017      2018       2019
                                                                                                          (see Appendix 14)

Lloyds Bank Consumer Digital Index 2019
                                                                                                The Digitally Disadvantaged                                                                                                              u

                                                                     Barriers to moving online

Figure 16. Reasons why people have not used the Internet in the past three months, 2019                                                                                                                                                        N = 225

Key % Percentage difference 2019 vs. 2017      N/A New option in 2019

     75%             N/A            +123%             N/A
                     60%                                                +163%        +81%
                                     58%              55%
                                                                        50%                           +138%
                                                                                                       38%                +87%           +136%
                                                                                                                                                          +122%                N/A               +143%
                                                                                                                           28%            26%                                                                         N/A                  N/A
                                                                                                                                                           20%                 17%                17%                 16%

  No interest     I'm worried      Privacy/       I'm worried        Spend           Too           Benefits are          No time      Too expensive        Poor           I want to              Poor            I don't have           I have a
                   about my         security     about the way     money on       complicated        unclear                                           connectivity/     but I don't         connectivity/         access to        disability that
                    identity       concerns      organisations    other things                                                                             slow         know where            no mobile         broadband in        prevents me
                  being taken                     use my data                                                                                           broadband          I would             coverage             my area           from using
                                                                                                                                                          speeds          get help                                                   the Internet

Those aged 60+ are going online to                       Of the offline population (figure 16):                        Recent research published by Ofcom shows that                 As the UK Government progresses with its
take advantage of online shopping                        • Three-quarters (75%) lack the motivation to                after explaining to people how advertisers use
                                                                                                                       their data to personalise content, the proportion of
                                                                                                                                                                                     commitment to raise the minimum standard of
                                                                                                                                                                                     connectivity across the UK by 2025**, and when
This year, there has been a 11% increase in over            investigate what benefits the Internet can offer
                                                                                                                       people who think this is acceptable drops by nearly           this is fulfilled, it is expected that this barrier
60s who have moved online (see Appendix 16).             • More than half say that online safety concerns             half to 36%*. Assuming that the Offline have even             will reduce. Compared to 2017, all barriers have
Particular growth has come from the 64-65s –                prevent them from using the Internet                       less exposure to information around online data               increased substantially which shows current efforts
those nearing retirement age. The behavioural
                                                         55% of people are worried about the way                       regulation, they are less likely to feel comfortable.         to break them down are not enough and more
data suggests that a motive behind this increase is
                                                         organisations use their data. The General                                                                                   needs to continue to be done.
an appetite for online shopping (see Appendix 17).                                                                     810,000 people don't go online
                                                         Data Protection Regulation (GDPR) came into
Two significant barriers prevent more                    effect in 2018. While this regulation brought                 because they can't access an adequate
people going online; motivation and                      significant change in the way that organisations              internet connection
                                                         handle customer data, the data shows that                                                                                   *Ofcom, 2019,
                                                                                                                       One-fifth of the Offline – an estimated 810,000
security concerns                                                                                                                                                                    pdf_file/0023/141683/ico-adtech-research.pdf
                                                         a large proportion of those online still do not               adults – say they have not used the Internet due              **DCMS, 2018,
                                                         fully understand how their data is used.                      to a lack of adequate connectivity.                           forging-a-full-fibre-broadband-and-5g-future-for-all--2

Lloyds Bank Consumer Digital Index 2019
                                                                                          The Digitally Disadvantaged: Barriers to moving online                                                                            u

     Figure 17. Of those who are offline due to ‘no interest’ in being online,                           N = 168          Figure 18. Top five things that would encourage people to go online, 2019                      N = 225
     these are the top five other barriers they also stated, 2019                                                         (excluding ‘nothing’)

                                I'm worried about having my identity taken                        61%                                                                                                                      50%

                  75%                                                                                                           If websites or apps were easier                                                            39%
                                                                                                                                                 to understand                                           £
                                    I'm worried about my privacy and security                     61%                                        Increased online
                                                                                                                                                                                                         Ë                 39%
                                                                                                                                           security awareness
                                        I'm worried about the way organisations use my data       60%                                 Cheaper cost of Internet                                     e                       32%

                                            I'd rather spend my money on other things             55%                                  Cheaper cost of device                                  e                           31%

                                                                                                                               Getting support from someone
              No interest                        I think the Internet is too complicated to use   51%                          to help (e.g. friends and family)                             ·                             30%

Cybersecurity concerns underpin                            This suggests that while a lack of interest may              2.2 million people say that there are                  • Increased provision of online security awareness
motivational barriers to being online                      be the perceived barrier, underpinning this is               things that need to happen before they                   to encourage 39% to get online
                                                           a strong set of concerns revolving primarily
The data has illustrated that the main barrier
                                                           around cybersecurity.
                                                                                                                        will go online                                         • Cheaper cost of connectivity and devices
preventing people from going online is motivation                                                                       Figure 18 shows the top five means for getting           to encourage nearly one-third to get online
(figure16: ‘no interest’). Of the 75% of the Offline       After cybersecurity related barriers, 55% say there          people online. While nearly half (47%) of the
who gave this answer, 89% stated more than just            are other things they would rather spend money                                                                      810,000 say assistive technology could
                                                                                                                        4.1 million Offline adults said that ‘nothing’ would
‘no interest’. Figure 17 shows the top five other          on and 51% say they are also offline because                 get them to go online (see Appendix 18), this
                                                                                                                                                                               get them online
barriers given by this group. The top three are            they lack the knowledge and capability to use                still leaves 2.2 million (53%) for whom there are      One-fifth of the Offline say that being able to use
cybersecurity related; identity theft, privacy, and        the Internet, were they online.                              tangible actions that can be taken to encourage        assistive technology such as Amazon Alexa or
concern over the way their data may be used.                                                                            them to get online.                                    Google Assistant may encourage them to use
                                                                                                                                                                               the Internet. This shows that the Offline are
                                                                                                                        The top three actions that must be taken to            not alienated by these technologies and there
                                                                                                                        encourage 2.2 million people to go online are:         is a place for them to enable the transition from
                                                                                                                        • Increased simplification of online services         offline to online.
                                                                                                                          to encourage 39% of people to get online

Lloyds Bank Consumer Digital Index 2019
                                                                                               The Digitally Disadvantaged                                                                                                     u

                                  Demographic spotlight: disability and ethnicity

                                                        group being offline compared to 7% for the rest              shows that the use of assistive technology can               Younger people have high digital capability
Figure 19. If it is appropriate to your condition,      of the population (see Appendix 19).                         help those with a disability secure employment               regardless of their ethnic background. Figure 20
do you use assistive technology to help you go                                                                       and pursue careers. However this would also                  shows that 88% of white people and 87% of Black,
online? 2019                                            People who are offline and have a                            need to be paired with social change and                     Asian and minority ethnic people under the age
                                                        disability are significantly less likely to                  organisational change to reduce stigma and allow             of 40 are Digital First. When looking at the older
Key       Yes        Not appropriate for my condition
                                                        understand the benefits of the Internet                      for flexible working arrangements to integrate               ethnic minority group, they are 10% less likely to
          Prefer not to say      No                                                                                  assistive technology.                                        be Digital First and more likely to be Competent or
                                                        Those who are offline and with a disability are 56%
                                                                                                                                                                                  Disengaged than the older white people. This data
                                                        more likely to be encouraged to go online if they            Older people from a Black, Asian or
                                11%                                                                                                                                               suggests that this group of older ethnic minority
                                                        understood the benefits of going online (39% vs.
                                                                                                                     minority ethnic background are more                          people may be left behind and would benefit from
      21%                                               25% rest of UK) (see Appendix 20). Research by
                                                        Scope evidences the benefits associated to digital;
                                                                                                                     likely to be Digitally Disengaged                            targeted support.
                                                        78% of disabled people said that access to digital
                                                        technology has been helpful and 92% also said it
                                                        helps them live independently***.

                                                                                                                     Figure 20. Proportion of people with different levels of digital capability. Split by ethnicity and age, 2019
                                                        One-fifth of people with a disability say
                                                                                                                                                                                                                                N = 2,664
                                                        assistive technology is not appropriate                      Key      Digital First      Digitally Competent         Digitally Disengaged
                                                        for their condition                                                                                                         88%                                        12%
                                                        Figure 19 shows that 66% do not use assistive                      White
Lloyds Bank Consumer Digital Index 2019
                                                                                                            The Digitally Disadvantaged                                                                                       u

                                                           Benefit claimants and digital capability

16% of UK benefits claimants
                                                          Figure 21. Behavioural segmentation applied to benefit claimants and those             Figure 22. Proportion of benefit claimants who are Digitally Disengaged.   N = 239,006
are Digitally Disengaged
                                                          on Universal Credit, 2019                                                              Split by region, 2019
Regionally, there are differences in the
                                                                                                                Key       Digital First
proportion of benefits claimants* with
low or no digital capability (figure 22).                                                                                 Digitally Competent
                                                                    30%                              54%
These trends reflect the overall                                                                                          Digitally Disengaged
regional trends for digital capability
(see Appendix 22), illustrating that
Scotland and the North East have
the lowest levels of capability; where
around one-fifth of benefits claimants
are virtually offline.
                                                                                 Benefit claimants          N = 240,407


Digital First
Over 1.6 million people in the UK are                                                                68%
                                                                                                                                                                                                                               North East
now on Universal Credit**. Findings
from Lloyds Bank data (figure 21)                               25%                                                                                                                                                               18%
show that a greater proportion of                                                                                                                North West

these customers exhibit highly
digital behaviours and fall into the                                                                                                             16%
                                                            7%                                                                                                                                                     Yorkshire & Humberside
Digital First group compared with the
national average. Further analysis                                                Universal Credit          N = 19,434                                                                                                            16%
indicates that this is likely due to there
being a greater proportion of young
                                                                                                                                                 West Midlands                                                              East Midlands
people currently in receipt of Universal                                                             62%
Credit, as the roll-out to the entirety                             25%                                                                          16%                                                                              16%
of the UK has yet to be completed.                                                                                                               Wales                                                                       East England

                                                                                                                                                 17%                                                                              14%
                                                                                      UK average            N = 1,001,840
                                                                                                                                                 South West


                                                                                                                                                                                                                               South East

*For the full list of benefits included in the analysis, see the glossary in the appendix                                                        Northern Ireland not included due to limited survey sample
**Department for Work and Pensions, 2019,

Chapter Three

Essential Digital
Skills for life

Lloyds Bank is proud to publish the first assessment of UK
Essential Digital Skills based on the new framework. This section
indicates the extent to which the UK population has the skills needed          Rhys Davies
                                                                               20, Stoke-on-Trent
to prosper in everyday life.
                                                                                       n the past Rhys has struggled with his financial and
                                                                                       mental wellbeing compounded by the pressures of study.
                                                                                       However, in recent times Rhys’ improved digital skills have
                                                                               helped him to better manage his wellbeing.
                                                                               “A couple of years ago I had no knowledge of online banking.
RT HON ANNE MILTON MP SAYS…                                                    Now, on my app, I can regularly check my balance to see what’s

	“Next year adults with no or              DID YOU KNOW…                     coming in and going out. I’m ten times better off with my finances
                                                                               now. I’m not panicking or worrying about my financial situation.
   low digital skills will benefit
   from new Essential Digital Skills
                                               11.9 million                    Another thing I do is listen to music constantly, as I’m working
                                                                               I’ll actually put the radio on my phone just as something in the

   qualifications free of charge.”           	people do not have the          background to keep my head going. I’ll use an app or streaming
                                                                               services that create playlists for me to listen to. Technology helps
                                               Essential Digital Skills they   me a lot when concentrating on work, it reduces stress and anxiety.”
	Minister for Apprenticeships and Skills,
  Department for Education                     need for life in the UK

Lloyds Bank Consumer Digital Index 2019
                                                                                                      Essential Digital Skills for life                                                                                                          u


22% of the UK are without                            In terms of demographics, the Essential
                                                                                                                                                                                                                                                   N = **
Essential Digital Skills for life                    Digital Skills survey data mirrors the         Figure 23. Proportion of different demographics that have Essential Digital Skills for life, 2019
                                                     findings of the behavioural segmentation;
The 2018 Index measured the previous                                                                       Key        Lowest % of people with Essential Digital Skills          Highest % of people with Essential Digital Skills
                                                     age is a key determiner of an individuals'
Basic Digital Skills framework and
                                                     level of digital skills.
reported that 11.3 million (21%) people
                                                                                                                                                                          35%                                                       91%
were missing these skills*. This year,               Young people are most likely
with the new challenges and increased                                                                            Education               0                                                                                                       100
                                                     to be skilled due to access
demands of the new Essential Digital Skills
                                                     and education                                                                                               no formal qualifications                               university formal degree
framework, there are now more people
who fall below the UK's standard level of            94% of 15-24s have Essential Digital Skills                                                                                    45%                                                 94%
digital skills: 11.9 million people.                 for life, the highest of any age group                ÷   Age                       0                                                                                                       100
                                                     (figure 23). Looking at the demographics
This new measure illustrates people's                within this group, this is unlikely to be                                                                                    65 years+                                        18-24 years
abilities to undertake 29 essential tasks,           driven by education or income as the data
categorized into five skills (see figures 24                                                                                                                                                  53%                        82%
                                                     shows this group is less educated and
and 25).                                             have lower incomes as they may be yet to              § Disability                  0                                                                                                       100

These five skills have a relatively equal            make these decisions about their future                                                                                                  yes                         no

weighting of attainment, with 80% of the             (see Appendix 23).
                                                                                                                                                                                                57%                              89%
UK being able to transact, communicate,              The Essential Digital Skills data does show,          e     Household income        0                                                                                                       100
handle and manage information, and                   however, that a factor may be due to
stay safe online. 79% are able to use the            having grown up in a digital world as they                                                                                                = £25,000
Internet to problem solve.                           are the most likely to be in possession of
                                                                                                                                                                                        49%                                87%
                                                     smartphones (94%) and have access to
                                                                                                           ĉ   Marital status            0                                                                                                       100
                                                     the Internet (100%); providing them the
                                                     means to go online wherever they are and                                                                               widowed/divorced/separated                         single
                                                     the opportunity to interact with it in new
                                                                                                                                                                                                                    75% 80%
                                                     and different ways (see Appendix 24).
                                                                                                           ³ Gender                      0                                                                                                       100
                                                                                                                                                                                                                  female male

                                                                                                                                                                                                          64%                      90%
                                                                                                                 Working status          0                                                                                                       100
                                                                                                                                                                                                    not working                  full time
*Lloyds Bank, Consumer Digital Index, 2018,
**Please see the appendix for sample sizes
Lloyds Bank Consumer Digital Index 2019
                                                                                             Essential Digital Skills for Life                                                                                  u

                                                                        Demographic results

Data on this page shows all
results, some of which is not   Figure i. Proportion within education attained with              Figure ii. Proportion within age group with Essential             Figure iii. Proportion within gender with Essential
included in figure 23.          Essential Digital Skills for life, 2019                          Digital Skills for life, 2019                                     Digital Skills for life, 2019

                                                                                                    94%            93%
                                                                    86%                                                              85%
                                                      75%                                                                                                                             75%



                                      No formal      GCSE /       A-level or   Degree /            15-24          25-34   35-44     45-54     55-64       65+                        Female       Male
                                     qualification   O-level /   equivalent    Master /
                                                      CSE /                     PHD               N = 644     N = 643     N = 578   N = 538   N = 665   N = 1132                    N = 2042    N = 2145
                                       N = 523       N = 1113     N = 830      N = 1334

Lloyds Bank Consumer Digital Index 2019
                                                                                     Essential Digital Skills for Life                                                                     u

Data on this page shows all
results, some of which is not   Figure iv. Proportion within with/without impairment      Figure v. Proportion within household income with   Figure vi. Proportion within marital status with
included in figure 23.          with Essential Digital Skills for life, 2019              Essential Digital Skills for life, 2019             Essential Digital Skills for life, 2019

                                                            82%                                                                                                       81%



                                                 Yes        No                                         Up to    £11,500 -   £25,000                    Widowed/     Married/     Single
                                                                                                      £11,499   £24,999       plus                     Divorced/    Living as
                                               N = 538    N = 3583                                                                                     Separated
                                                                                                      N = 462    N = 663    N = 1636
                                                                                                                                                        N = 635    N = 2348     N = 1196

Lloyds Bank Consumer Digital Index 2019
                                                                                           Essential Digital Skills for life                                                                                           u

                                                                   Skill and task level results

Figure 24 shows the 29 tasks within the Essential Digital Skills
for life framework. The 29 tasks outlined on the following two       Figure 24. Proportion of people who can do the Essential Digital Skills and tasks for life, 2019                                                  N = 4,190
pages are indicative of the skills that everyone in the UK needs
in order to survive and thrive online. As per the Basic Digital      Problem Solving                                                           Being Safe and Legal Online
Skills measure, individuals need only be able to undertake one
skill in each category in order to indicate ability.                                                                            É    79%                                                                   Ë                  80%

On average, around seven out of ten people can undertake
                                                                     I can use the Internet to find information that helps                     I am careful with what I share online as I know that online activity
most tasks. 45% of people in the UK can do all 29 tasks,             me solve problems e.g. use search engines                                 produces a permanent record that can be accessed by others
indicating a strong and rounded Essential Digital skillset                                                                           78%                                                                                      78%
which is enabling them to thrive in everyday life
                                                                     I can use online tutorials, web chat, FAQs and forums to                  I can respond to requests for authentication (e.g. reactivate
(see Appendix 25).                                                   solve problems                                                            an account when I've forgotten my password)
                                                                                                                                     71%                                                                                      77%
“In this digital age, technology and                                 I can use online tutorials, web chat, FAQs and forums to                  I make sure not to share or use other people's data
                                                                     improve my digital skills                                                 or intellectual property without their consent
innovation continue to move at pace                                                                                                  69%                                                                                      76%
meaning that all of us need to improve                                                                                                         I can keep the information I use to access my online accounts secure,
our digital skills. The Essential Digital                                          The findings indicate an ability to use search
                                                                                                                                               by using different and secure passwords for websites and accounts

Skills framework underpins this agenda                               È             engines to answer key questions, but using
                                                                                                                                               I can recognise and avoid suspicious links in emails, websites, social media

by providing measurement through                                                   more interactive methods of sourcing                        messages and pop ups, and know that clicking on these links is a risk
data. We must work together to bridge                                              information and improving digital skills                                                                                                   76%
the skills gap and ensure that we are all                                          presents challenges                                         I can assess the risks and threats involved in carrying out
                                                                                                                                               activities online and act accordingly (e.g. use security software)
equipped for the future. This is at the                                                                                                                                                                                       74%
heart of my Shaping Tomorrow's City                                                                                                            I can set privacy settings on my social media and
Today programme and will ensure that                                                                                                           other accounts
the UK remains globally competitive and
                                                                                                                                               I can identify secure websites by looking for the padlock
acts as market leader in technology.”                                                                                                          and ‘https’ in the address bar
                                                                                   This is the first time that online safety and                                                                                              74%
Peter Estlin
Lord Mayor of London
                                                                     Ê             security has been measured in this way                      I can update my computer security systems when
                                                                                                                                               necessary to prevent viruses and other risks

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