Insights ¦ A demographic deep dive into internet adoption

Key Take Aways

1. Digital exclusion remains significant, with approximately 5% of UK households (around 2.5 million people) lacking home internet access, despite a marked decline since 2019.
2. The highest demographic risk for non-internet access is individuals aged 85+, with those aged 75-84 also notably impacted, indicating the need for targeted inclusion strategies.
3. Breakdowns show that social housing renters constitute a considerable proportion of those without internet at home, highlighting housing tenure as a key factor in digital inequality.
4. Over half of the non-internet users are younger than 75, suggesting that digital exclusion spans multiple age groups, not solely the elderly.
5. The most common reason for not adopting internet access is a perceived lack of need or interest (69%), which underscores the importance of demonstrating value to potential users.
6. Financial constraints are frequently cited, including concerns about setup costs, ongoing charges, or the expense of hardware or mobile services, indicating affordability as a barrier.
7. Digital services’ usability issues and perceived complexity may inhibit adoption, emphasizing the need for user-friendly solutions, especially for those less familiar with technology.
8. Renting from social landlords significantly correlates with lower broadband uptake, implying that tenant status is a vital consideration for service providers.
9. Predictive modelling highlights that living in Yorkshire and Humberside increases the likelihood of being a non-internet user, pointing to regional disparities.
10. Age is the strongest demographic predictor for being a non-user, with those over 85 being 8 times more likely not to have internet access.
11. The research indicates that many households have internet but do not use it, exposing an additional layer of digital disengagement that needs addressing.
12. For financial institutions, understanding these demographic splits offers an opportunity to tailor digital engagement initiatives, especially for vulnerable or excluded groups.

Key Statistics

• 5% of UK households (approximately 2.5 million people) have no home internet access in 2024, a decrease from 13% in 2019.
• Over 50% of those without broadband at home are under 75 years old.
• 1% (around 0.4 million) have internet at home but do not use it.
• Among those without access, 41% are aged 85+, and 15% are aged 75-84.
• Renting from a social landlord doubles the likelihood of lacking broadband access and triples the chance of being a mobile data-only or external-only internet user.
• 69% of those unlikely to get internet in the next 12 months cited ‘no need or interest’.
• Around 7 in 10 respondents unlikely to adopt broadband within a year attribute this to perceived lack of necessity.
• The forecast shows a 53% reduction in those aged 75+ without internet since 2019.
• 56% of non-internet users are social grades DE, which includes semi or unskilled workers and pensioners.
• Relying on mobile-only connectivity is a choice for some; the data shows no strong age or social grade correlation.
• Predictive modelling indicates that being aged 85+ increases the chance of non-internet use by a factor of 8.
• The regional impact suggests Yorkshire and Humberside has a higher likelihood of non-internet households compared to other regions.

Key Discussion Points

• The persistent digital divide highlights the importance of tailored interventions for the over 85s and social housing tenants.
• Understanding the primary reasons for digital exclusion, notably perceived lack of need, can inform engagement strategies for financial services and digital product providers.
• Affordability and perceived complexity remain crucial barriers requiring innovative solutions tailored to vulnerable user groups.
• The significant demographic predictors identified through modelling emphasise the opportunity for targeted outreach, especially to retirees and social renters.
• Regional disparities suggest that localised strategies may be necessary to bridge gaps in digital adoption.
• The decline in households with no internet access signals progress but underscores the need to focus on the remaining groups at risk of exclusion.
• The presence of households with internet but no usage indicates potential opportunities for re-engagement through improved usability and relevance.
• The data demonstrates that many digital exclusion issues are multifaceted, requiring comprehensive approaches beyond infrastructure provision.
• The relationship between housing tenure and digital exclusion suggests that housing policy and digital inclusion initiatives should be aligned.
• The insights serve as a foundation for developing inclusive digital financial offerings that cater to older and digitally marginalised consumers.
• Ensuring that vulnerable or disconnected groups gain digital literacy support is critical for financial institutions aiming for broader digital engagement.
• Ongoing regional and demographic analysis remains vital to adapting strategies as digital adoption patterns evolve.

Document Description
This article presents a comprehensive analysis of internet adoption and digital exclusion within the UK, based on Ofcom’s Technology Tracker 2024 survey. It explores demographic factors influencing internet access and usage, including age, housing tenure, social grade, and region. The article delineates profiles and predictive models of various user groups — non-internet users, mobile data-only, and external-only users — and highlights key barriers such as perceived need, affordability, and usability. It offers insights crucial for senior managers in financial services seeking to develop inclusive digital engagement strategies tailored to vulnerable or marginalised segments.