In today’s world, almost every aspect of our lives is being transformed by digitisation. From job opportunities and social integration to changes in quality of life, our digital competence has become a crucial factor.
However, not everyone has equal access to digital opportunities, which creates a digital divide among the population.
To address this, the Digital Connect Scheme was launched in November 2021 to increase inclusion and strengthen digital skills among low-income households. Through this pilot initiative, fixed broadband internet connectivity and a laptop were offered to 2,300 low-income households in 15 locations.
In essence, the Digital Connect Scheme was created to benefit low-income persons and families who cannot afford the cost that accompanies the acquisition of digital skills, which leads to challenges such as limited access to devices and connectivity that would support digital skill acquisition.
Other factors, including age and lack of employment, also create barriers and contribute to social exclusion, which the scheme was also designed to reduce.
The demographic data the Malta Digital Innovation Authority (MDIA) collected suggests that the scheme’s implementation targeted the right group of beneficiaries. The majority of those benefitting from the programme (80%) are over 41, with 24.1% receiving non-contributory pensions.
Research shows that older people generally possess weaker digital abilities than their younger counterparts, which is a policy concern for two reasons.
Firstly, older people from low-income households are more likely to experience 1) poverty, which limits their access to digital services and social engagement, and 2) social exclusion, which is exacerbated by digital exclusion.
Therefore, the 50.3% of scheme recipients aged over 61 stand to experience improved quality of life and career opportunities by strengthening their digital skills.
This is particularly relevant because Malta has a high percentage of low-skilled or unskilled workers in the context of the EU, and older individuals are less likely to be employed.
Additionally, older adults typically have lower levels of educational attainment, with 45% of those aged 45-54 and 65% of those aged 55-64 having ISCED levels of 0-2, according to a 2020 policy statement from the Central Bank. The latter also tends to avoid formal or informal training.
The scheme was also developed to promote the improvement of digital skills among the general population, targeting those who – without additional support – may also face affordability and social exclusion barriers to acquiring these skills.
Older people from low-income households are more likely to experience poverty which limits their access to digital services- Bernard Montebello
This aim was driven by consistent DESI results showing that although Malta has progressed across the digital pillars measured by the Index, a significant portion of the population still lacks basic digital skills.
From the start, the scheme’s effectiveness always depended on whether it would successfully target people who need this type of intervention, which is why 13.5% of its beneficiaries fall into the long-term unemployed category, with 20.2% being on social assistance, which indicates that they may also be facing employment issues.
The demographics highlight the success of the Digital Connect Scheme in promoting digital uptake among low-income families.
Results show that it has been successful in its population targeting since 76% of its beneficiaries who had never participated in similar schemes claimed to have little to no digital abilities when they signed up.
Only 26.4% of these beneficiaries reported having no digital skills, while the small group who had previously benefitted from digital-oriented programmes had a significantly different profile, with skills in the upper ranges of the scale.
Furthermore, only 13% of respondents were employed at the time of the survey, with 60.9% claiming not to be in work. This indicates that the scheme targeted population groups appropriately, given the financial constraints in such households.
The study also found that 90.6% of respondents did not purchase any digital devices, which indicates digital affordability limitations in low-income households and highlights the scheme’s relevance.
Similarly, 68% of respondents were not in the habit of making online purchases, which paints a picture of beneficiary households living on a relatively low income.
The survey also showed positive results regarding the laptop and internet connection provided by the scheme, with 54.6% of respondents reporting daily use of the laptop and 75% reporting daily use of the internet connection.
The results indicate that beneficiaries frequently use the digital tools provided by the scheme, also suggesting ease and familiarity.
Overall, the results indicate that the Digital Connect Scheme was successful in incentivising, supporting and promoting digital uptake among low-income, qualified families, and that it achieved its objectives as defined by the OECD.
In conclusion, the pilot programme achieved its objective of providing digital tools and connectivity to homes that otherwise might not have been able to access them.
The survey findings show that the programme was successful in increasing the digital competence and confidence of the scheme’s beneficiaries, as indicated by the high frequency of tool usage and significant increase in self-assessed digital competence in the survey population.
However, there is room for improvement, particularly in terms of people’s readiness and willingness to engage in additional training, as well as their usage of digital tools for day-to-day work and e-Government services.
Nevertheless, the pilot programme was a step in the right direction in addressing the digital divide, and one which revealed the continued need for additional initiatives to fully bridge the gap.
Bernard Montebello is people and corporate manager at the Malta Digital Innovation Authority.