Broadband minded: encouraging low income consumers online

Money is not the only barrier preventing low income consumers from connecting to the internet, according to new Consumer Focus research, which also shows how many ‘non-connected’ consumers see the internet as irrelevant to their lives.  Following the findings the consumer champion is calling for the Government to adapt their messaging and to promote benefits of internet access that are more relevant to low income consumers.

The Broadband Minded? (pdf 413 KB)  report looks at the factors low income consumers consider when deciding whether to get broadband access at home¹, and shows a much more complicated picture of the barriers to getting online than cost alone.

While cost remains significant, the research highlights a range of alternative reasons for not getting connected from fears about viruses, personal data scrutiny and new technology, to how internet access will affect face-to-face communication with friends and family.  Consumer Focus is therefore calling on Government to address these concerns when encouraging low income consumers online. 

Mike O’Connor CBE, Chief Executive of Consumer Focus, said: ‘Government has made it a priority to encourage people to get online, especially those on low incomes.   Cost is not the only issue and if the Government wants more people online they need to deal with consumers’ fears about the internet such as the dangers of identity theft and viruses.

‘Millions of people are still not online, many of them on low incomes.  Only by dealing with consumers’ fears, and promoting the online benefits that appeal to those on low incomes will more people be encouraged to get connected.’

Consumer Focus wants the messaging used when promoting the benefits of internet access to better reflect issues that are relevant to low income consumers.  For example, the commonly touted benefits of ‘online savings’ are not relevant to many low income consumers who do not have bank accounts or the credit facilities needed to take advantage of the savings.  

Benefits, or incentives, that low income consumers said would encourage them online include the ability to; make money by selling items on sites such as eBay; search for employment; research for educational purposes; keep in touch with friends and family and access home entertainment channels. 

While the research shows many low income consumers to be resistant to getting online and view other activities and expenditures as more important, those who have adopted the internet said they could no longer live without it.  This finding shows the value of finding a more targeted approach to encourage the take up of home internet services by the poorest households.

Ends

Fact file

• More homes took up broadband (fixed or mobile) than any other communications service during 2008/09   (Communications Market Report, Ofcom 2009)
• By the first quarter of 2009, 68% of households were online (Communications Market Report, Ofcom 2009)
• However, one in three households does not have internet access (Communications Market Report, Ofcom 2009)
• Twelve million people in the UK do not have access to the internet at home (Ofcom market research)
• Over half (51%) of low income households have the internet, up from a third (35%) one year ago.  These figures are still less than the UK average of three out of every four adults (73%) (Nations and Regions Tracker, Qrt 1, 2009, Ofcom)
• For those on less than £11,500 per year only 29% have internet access at home compared to 69% for households earning £30k or above (Nations and Regions Tracker, Qrt 1, 2009, Ofcom)

Notes to editor

¹ i2 Media Research and GK Consulting conducted qualitative research consisting of in-depth (60-90 minutes each) interviews with 28 low income participants in 14 households in both urban and rural areas in and around Manchester, Sheffield, London, Yorkshire and the West Country. Qualitative research is designed to give an in-depth understanding, and is not statistically representative.  This research was conducted on behalf of Consumer Focus and took place between November 2009 and February 2010.

Consumer Focus is the independent champion for consumers in the UK, created from the merger of energywatch, Postwatch and the National Consumer Council (including the Scottish and Welsh Consumer Councils). Consumer Focus is the voice of the consumer, and works to secure a fair deal on their behalf.