London Businesses Hit Highest Recorded Level of Digital Skills Gap in 2026

With a recent study revealing that London businesses are seeing a decline in digital skills of their workforce over the last year, let’s take a look at the digital skills gap across the UK.

Importance of Digital Inclusion in the UK

Today, internet connectivity by either WiFi or mobile networks is more essential than ever before. We use the internet for such a wide range of things, including to work remotely, to access a wider range of jobs, to access essential services, and so on. But tackling the digital divide does not just focus on the essentials; it means that everyone should have the same level of access to those ‘nice to have’ services, too.

For example, much of our entertainment is now offered through the internet, such as chatting to our friends and family on Skype, WhatsApp, or Facetime; music streaming services like Spotify and Apple Music, TV streaming services like Netflix and NowTV, and even iGaming services. For players to enjoy the 12 Pots of Gold Drums slot game online along with any other online casino games, or wider entertainment for that matter, users log into an online platform and can access their chosen entertainment on demand.

National Digital Inclusion Gap

Despite the internet and suitable devices being essential for everything from basic needs, to work, to entertainment, research has found that 1.5 million Brits don’t own a smartphone, tablet or laptop, 1.9 million households struggle to afford internet, and 33% are unaware of local access points such as local libraries that provide access to digital devices and internet connectivity.

According to these national figures compiled in a publication by Hammersmith and Fulham Council, 21% of respondents feel left behind by technology, 64% believe there’s not enough support for those who need help with access or skills development, and 76% say there should be more government investment in digital upskilling.

This translates into the workplace in a significant way, with one study finding that 8.5 million Brits lack the most basic digital skills, contributing towards a massive 92% of UK businesses reporting that there is a digital skills gap in their workforce. With technology rapidly developing, it is estimated that around 18% of people don’t have the essential digital skills required in the modern workplace, which is thought cost the UK economy £63 billion in lost GDP annually.

Digital Skills in London

A recent poll of business leaders by Survation and BusinessLDN found that 50% of London businesses do not believe their existing employees have the required digital skills, up from 37% the previous year. 60% of these had shortages in advanced skills, but 23% saw a basic skills gap. Indeed, 15% reported more significant gaps, an annual increase of 11%, bringing it to the highest recorded level of digital skills gap.

The survey also found that this was impacted by up-and-coming technologies, particularly AI. 85% of London businesses believed that AI specifically has changed the level of digital skills needed for the workplace. This has led to over three quarters of firms expecting to need more advanced digital skills from their workers over the next two to five years.

What this goes to show is that digital inclusion is perhaps more important than ever in the UK, and even in the business and technology hub of London.

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