Connecting Scotland programme: full business case

4 Socio-economic case

4.1 Introduction

The purpose of the economic dimension of the business case is to present the proposals that deliver best public value to society, including wider social and environmental effects, the rationale for making these recommendations and to set out the options for a new delivery model for Connecting Scotland. As there is a significant consideration of this in societal terms, this section has been named the “Socio-economic” case.

4.2 Principles underlying delivery model development

The delivery model for Connecting Scotland must build on previous successes, while shifting away from a crisis-response model to one that focusses on creating sustainable digital inclusion in the longer term. This requires a focus that expands beyond Connecting Scotland to look at the efficacy and reach of work in this sphere already taking place by organisations and vendors across Scotland. This will provide a cost-effective and sustainable path towards delivering on Scottish Government digital inclusion ambitions.

Original Connecting Scotland

• A single model where kit is gifted to recipients
• Connection extended on an ongoing bases
• Cost of ongoing internet support prohibitive
• Inflexible in terms of device reuse where no longer needed
• Not economically sustainable for the programme
• Does not help foster sustainable inclusion for recipients

New Connecting Scotland

• A series of models where kit and connectivity benefit more than one recipient
• Find ways to support those organisations that already provide digital inclusion services
• Implement a longer term strategy to improve the digital inclusion landscape
• Make self-sufficiency for individuals easier to achieve

This can be delivered by building a service around the following principles:

• establishing joint outcomes and connecting partners to activate, support, connect and extend vital digital inclusion work already taking place in many organisations across Scotland
• directing people to existing support which will be an essential element of connecting partners, as outlined above. There are some quick wins possible here, for example, OFCOM estimate the only 3% of people eligible for social internet tariffs are taking them up. Full take-up could lead to multimillion pound savings for people in Scotland
• increasing capacity and impact by developing a portfolio of partnership programmes that will tell us how to combine digital inclusion support with social interventions to maximise the impact of government programmes and deliver societal, economic and individual benefits at scale
• leveraging buying power and centrally sharing resources to help lower the costs for organisations, vendors and Local Authorities already providing digital inclusion solutions across Scotland
• adopting one-to-many solutions so that any government spending has the maximum impact and benefits as many people as possible. An example of this is to provide place-based connectivity in community spaces that can be accessed by many people (which can include warm banks) or making devices available via device libraries so that device reuse is maximized
• providing direct support for acute need to support those struggling most or who are most vulnerable and to help mitigate some of the worst aspects of the cost-of-living crisis
• a focus on sustainability for individuals to have device, connectivity training and support options that are sustainable for them. To have a financially sustainable Connecting Scotland programme that can deliver help within a defined cost envelope. To have a sustainable digital inclusion ecosystem in Scotland where an appropriate level of support is available to all.

4.2.1 Fulfilment of key objectives

A key objective for Connecting Scotland is to build stronger connections between partner organisations and establish joint outcomes. Activities proposed under this umbrella will form the basis and foundation for most of the options proposed in this FBC. These activities will therefore be referred to as ’systems and capacity building activities’ in the options analysis.

The Connecting Scotland Programme will utilise and engage available components of the wider digital inclusion landscape in a more effective and well-connected system. Systems and capacity building activities build upon and accelerate government sponsored work that is currently ongoing or has been undertaken in this area previously, such as the Digital Participation Charter and place-based work.

There are 5 identified components to this: connecting the person, connecting organisations, the Public Sector, the Scottish Government and the Digital Citizen Unit. Each has associated priorities and responsibilities which co-exist across the components, varying in stakeholder perspective.

4.2.2 Connecting People

This involves identifying the right support for individuals. A Connecting Scotland hub would signpost and direct people to the appropriate resource, enabling people to develop essential digital skills and the resultant benefits in terms of opportunities, confidence and education.

The key areas of focus within this component are:

• Use of and access to training and appropriate devices where suitable
• Connectivity that meets clients’ needs in the most suitable ways
• Learning support for those providing Digital Inclusion processes
• Confidence of clients
• Co-design approaches to enhance and enable successful and focused delivery of embedded Digital Inclusion protocols and procedures
• Signposting and advertising relevant resources that already exist and joining people up to the right support for them.

4.2.3 Connecting Organisations

This involves activating, connecting and extending the digital inclusion third sector, public sector and private sector landscapes through a range of network and capacity building activities. Key to this is identifying areas of interplay and gaps that would benefit from assistance and providing shared learning opportunities and approaches and joining up suitable connections for mutual benefit. There is an additional element of enabling organisations to transform their approaches to be more digitally inclusive and more capable of supporting and championing digital inclusion. Developing capacity in Environmental, Sustainable and Governance (ESG) policies and frameworks, particularly in the third sector, will support organisations to strengthen and curate appropriate applications to private industry for fiscal or other support. Further, Connecting Scotland has a role in providing and guiding communications to appropriately reflect key information in accessible ways.

The key actions and areas of focus within this component are:

• Digital Participation Charter revision and re-launch
• Digital Inclusion Action Plan (co-produced with key partners)
• A Scottish Minimum Digital Living Standard
• ESG Brokerage Support and procurement playbooks
• Delivery of embedded Digital Inclusion protocols and procedures

4.2.4 Connecting the Public Sector

This would involve working with key delivery partners and across local government and health arenas. Key to this is mapping the digital inclusion public sector actions already ongoing (e.g., the highly positive work happening in Renfrewshire) and identifying and exemplifying gold standard practice. By mapping and joining this landscape we will aim towards more continuity, scaling, learning and more consistent citizen experiences across Scotland.

The key actions and areas of focus within this component are:

• Mapping the Digital Inclusion Public Sector
• Creation of a Scottish Digital Inclusion Alliance

4.2.5 Connecting Scottish Government

This involves positioning and identifying Connecting Scotland as the central government hub for device/connectivity and support provisions. It will involve influencing and managing relationships across directorates and enabling joined up governance and funding to direct effective, consistent and user-centred approaches to digital inclusion. This is especially important to deliver the principle of increasing the capacity and impact of government programmes. It would build on existing partnerships (Child Poverty, Social Housing; Mental Health; Social Care) and expand to be the government’s internal touch point for digital inclusion support.

The key actions and areas of focus within this component are:

• Delivery of embedded Digital Inclusion protocols and procedures
• Co-creation of design standards featuring Digital Inclusion information
• Developing communications and marketing that positively impact Digital Inclusion
• Creating a network of Digital Inclusion Champions inside Scottish Government
• Providing access to the best market pricing for Digital Inclusion actions

4.2.6 Connecting through Digital Inclusion Action Plan

This involves effectively and accessibly sharing the story of Digital Inclusion, sharing best practice and contributing towards the refinement of policy areas such as a Scottish Minimum Digital Living Standard (MDLS), the Digital Participation Charter, the Scottish Digital Inclusion Alliance and development of Digital Ethics across government. There is potential to develop a ‘gold standard’ recognition programme (through the Digital Participation Charter) for all organisations, businesses and individuals working across the nation to enable them to be easily recognised as reputable, reliable, and informed. This could work on a similar basis to ‘Trusted Traders’ and support public and business recognition of Digitally Inclusive actions being taken.

The key actions and areas of focus within this component are:

• Co-creation of the Digital Inclusion Action Plan and delivery of milestones at the right time
• Creation of the Scottish Digital Inclusion Alliance
• Revision of the Digital Participation Charter

Undertaking these activities would make existing support services much more visible to potential users, give users a more joined-up experience where different digital inclusion needs can be met at the same time and in the same place, and improve the capacity of the system overall to help more people.

4.3 Future service model options and recommendations

5 service model options for Connecting Scotland were analysed in terms of costs against potential to address digital inequality:

1. Closure of the Connecting Scotland programme

2. Systems and capacity building activities plus partnership programmes

3. Urgent needs support (includes 2)

4. Delivering digital inclusion to 300,000 over an extended timescale (includes 3)

5. Delivering digital inclusion to 54,000 over 3 years (includes 3)

4.3.1 Detailed outline of options

The tables below show a summary of each option, providing detail on the recommended decisions.

4.3.2 Option 1

Option 1	Closure of Connecting Scotland Programme
Overview	Transition towards end of support as programme shuts down formally.
Key details	Option 1 would see Connecting Scotland close at end Q1 2025. Until this time, it would focus on undertaking actions which consolidate and share relevant knowledge gathered to date from the previous model. It would likely carry negative impact on existing clients as access to connectivity continuation, device repair, helpline support and digital champion training would cease to be available. The focus of this model is the recording and sharing of knowledge.
Key features	Using current levels of available digital inclusion funding Create an offboarding strategy for existing Connecting Scotland clients Creating legacy materials No delivery of kit, connectivity or support. Externally funded partnership programmes with other directorates would go ahead, but there would be no programme to build on this work within SG
Citizens directly supported to get online	0
Cost	Core Staff £0.76M per year Total cost £0.76M per year
Risk	Significant reputational risk Scottish Government unable to set national direction for digital inclusion No further impact on reducing rates of digital inclusion
Duration	2 Years (to end of 2024/25)
Connectivity models	None
One-to-many models included	Publicising Social Tariffs and other options to existing Connecting Scotland users
Systems and capacity building activities	None
Recommendation	Not recommended

4.3.3 Option 2

Option 2	Systems and capacity building activities plus partnership programmes
Overview	Provides the opportunity to explore in detail essential components required for long-term, sustainable Digital Inclusion approaches.
Key details	Focusses on creating and delivering a strategic plan for tackling digital inclusion across Scotland in partnership with third sector, government and industry. System and capacity building activities will assist these programmes to find sustainable sources of funding and a viable home within the wider landscape of support. This option also includes funding additional partnership programmes to provide direct support to citizens that will verify the potential of one-to-many support models and provides necessary rigorous groundwork to establish a future programme.
Key features	This option would combine learning (to refine one to many models) with delivery within partnership programmes. It would enable the evaluation of one-to-many models in different contexts and set the best approaches for delivery, distribution, reach, etc System and capacity building activities will assist partnership programmes to find sustainable sources of funding and a viable home within the wider landscape of support. Funding for the partnership aspect of this option can be on a sliding scale from supporting between 4000 and 16000 people online over 27 months
Citizens directly supported to get online	Between 4000 and 16000 depending on funding made available to this option
Cost	Core Staff £0.76M per year Grant to SCVO £308,000 (first year) Partnership programme costs (one to many models) £360,872 to bring 4000 (est.) people online £977,552 to bring 16000(est.) people online
Risk	Some level of reputational risk as this will not end digital exclusion. However, this option does provide grounding and rationale for the long-term future of the programme as well as an element of delivery capacity depending on funding level
Duration	2 years (to end of 2024/25)
Connectivity models	All can be tested thoroughly via partnership programmes
One-to-many models included	All can be tested thoroughly via partnership programmes
Systems and capacity building activities	All included
Recommendation	Recommended as an option

4.3.4 Option 3

Option 3	Urgent needs support (includes 2)
Overview	This option extends option 2 to include a greater component of delivery for those most at need or most vulnerable in society.
Key details	In addition to the work outlined in option 2, this option would engage with relevant associations and organisations and charities, with particular focus upon those who have urgent needs such as: acute financial need due to cost of living crisis, victims of domestic abuse, those experiencing homelessness and victims of trafficking.
Key features	This option differs from earlier models in that it includes an explicit element of direct support in addition to systems and capacity building activities and partnership programmes. This support will be targeted at those in acute need or humanitarian situations and be aligned with policy priorities (e.g., low-income households with children) Delivery may include elements of 1-to-1 support as the most appropriate way to meet acute need and be delivered like the original Connecting Scotland model until one-to-many models are proven and can be extended to these user groups. This model can be combined with model 2 and the balance between partnership programmes and direct delivery for urgent need can be adjusted depending on an assessment of priorities.
Citizens directly supported to get online	Up to 40000
Cost	Core Staff £0.76M per year Systems and capacity building activities £152k per year Cost of one-to-many model support: £2,210,912 Total cost: £4,274,270 over lifetime of current parliament.
Risk	Some level of reputational risk. However, this option does provide grounding and rationale for the long-term future of the programme as well as an elevated level of direct delivery with a focus on those most in need.
Duration	2 years (to end of 2024/25)
Connectivity models	All can be tested thoroughly via partnership programmes
One-to-many models included	All can be tested thoroughly via partnership programmes
Systems and capacity building activities	All included
Recommendation	Not recommended for financial year 2023/24 but could be reconsidered in future years

4.3.5 Option 4

Option 4	Delivering digital inclusion to 300,000 over an extended timescale
Overview	Allows for continuation of systems and capacity building activities and seeks to deliver to the scale set out in the manifesto, but over a longer time frame to account for the changed funding landscape.
Key details	Option 4 would see Connecting Scotland run under the Scottish Government for a maximum duration of 5 years and deliver internet access to 300,000 people during this timeframe. This would be achieved through one-to-many models with 300,000 people receiving support from the service without unlimited time access to devices or connectivity.
Key features	Partnership programmes in year 1 will establish CS as a centrally funded managed service over subsequent years. Lower costs are possible via a front-end programme like Option 2 which will identify highest value for money approaches to take forward. This option can work across the largest number of policy areas and so be able to enhance a wider range of key government initiatives with digital inclusion support e.g., in health, social care, employment, education.
Citizens directly supported to get online	up to 300,000
Cost	Total funding over 5 years (one-to-many models): £18,634,379
Risk	This option presents less reputational risk. The effectiveness of one-to-many approaches would have to be proven to deliver at scale for a relatively low cost (£18M)
Duration	5 years
Connectivity models	All can be tested thoroughly via partnership programmes
One-to-many models included	All can be tested thoroughly via partnership programmes
Systems and capacity building activities	All included
Recommended	Not recommended

4.3.6 Option 5

Option 5	Minimum funding model + Most of systems and capacity building activities
Overview	Allows continuation of systems and capacity building activities and seeks to deliver direct support at a level higher than options 2 and 3 up to 54,000 people.
Key details	Has a greater emphasis on increased levels of direct delivery than options 2 and 3
Key features	Allows for continuation of systems and capacity building. Includes a larger proportion of direct support. This option can work across a greater number of policy areas (than options 2 and 3) and so be able to enhance a wider range of key government initiatives with digital inclusion support e.g., in health, social care, employment, education.
Cost	Total funding over 3 years (one-to-many models): £5,424,947
Risk	Other than option 4, this option has the highest proportion of direct delivery. The effectiveness of one-to-many approaches would have to be proven to deliver at scale for a relatively low cost
Duration	3 years
Connectivity models	All can be tested thoroughly via proof-of-concepts
One-to-many models included	All can be tested thoroughly via proof-of-concepts
Systems and capacity building activities	Prioritised elements of systems and capacity building to be included
Recommendation	Not recommended

The following additional models were identified as unsuitable and are not being considered in further depth.

4.3.7 Option 6

High-cost urgent needs long-term programme

This option would involve a sole focus on crisis and humanitarian-related responses only each year.

This option was not investigated further for the following reasons:

• Duration of over 15 years would not align with the urgent needs of target users
• Giving away devices and connectivity as per the original programme but in the present financial climate, means this proposal would cost over £30 million more than previous estimate of £200 million
• This model fails to address or meet the needs of groups beyond those in extreme crisis situations
• The slow roll out means that there is a risk that the programme would need to adapt and change the responses for digital exclusion and digital poverty over time as needs change
• As this model retains the gifted model approach, suppliers will not engage. It does not demonstrate environmental sustainability.

4.3.8 Option 7

Connecting Scotland transforming into a separate entity over 5 years

This would involve 5 years of government funding, followed by Connecting Scotland transforming into a separate entity that can apply for Government funding and support which would reduce over time.

This option was not investigated further for the following reasons:

• Giving away devices and connectivity as per the original programme but in the present financial climate, this proposal would cost over £9 million more than the original estimate of £200 million, and would also require £41 million per year to maintain
• This model requires time and money to resolve legal, corporate and governance issues involved in setting up Connecting Scotland as a separate entity.
• As this model retains the gifted model approach suppliers will not engage
• There are no guarantees that suitable funding alternatives will be available
• In a situation where no suitable funding is identified and accessed, the Scottish Government would be responsible for funding the programme
• This is not recommended at the current time due to uncertainty over the potential for funding, high set-up costs and governance.

4.3.9 Option 8

Connecting Scotland on a 4-year tapered funding programme, working towards separate entity status throughout the proposed duration.

In this scenario, over the next 4 years Connecting Scotland would receive gradual reduction of access to Scottish Government funding while alternative funding routes are identified. Connecting Scotland would transform into a separate entity at the end of this period.

This option was not investigated further for the following reasons:

• Giving away devices and connectivity as per the original programme but in the present financial climate, this proposal relies on additional sources of funding in addition to support from the Scottish Government.
• Using a one-to-one approach would only enable support to be provided to 100,000 people
• This reduced total figure would only be reached if additional funding avenues were accessed and identified in a timely manner.
• This model requires time and money to resolve legal, corporate and governance issues involved in setting up Connecting Scotland as a separate entity as this model retains the gifted model approach suppliers will not engage.
• There are no guarantees that suitable funding alternatives will be available
• In a situation where no suitable funding is identified and accessed, the Scottish Government would be responsible for funding the programme
• This is not recommended at the current time due to uncertainty over the potential for funding, high set-up costs and governance.

4.3.10 Option 9

Connecting Scotland operating using an external funding model

Connecting Scotland would receive minimal government support for the next 3 years that would only cover the costs of SG staff. The process of setting up Connecting Scotland as a separate entity and identifying alternative sources of funding would begin immediately.

This option was not investigated further for the following reasons:

• This model will not meet the needs of the most vulnerable groups.
• This model is unable to meet user needs significant funding from the private sector
• This model requires time and money to resolve legal, corporate and governance issues involved in setting up Connecting Scotland as a separate entity

4.3.11 Option 10

Connecting Scotland taken over by SCVO

In this scenario, Connecting Scotland would cease to be managed by a central government team. SCVO would take over management, funding, governance and all aspects of delivery for the programme.

This option was not investigated further for the following reasons:

• It was not the preferred option of SCVO as a key delivery partner
• There would be no further provision of support or information to existing customers

4.4 Connectivity and procurement options for Connecting Scotland

This section details the different options for connectivity and procurement that can be used for Connecting Scotland. This, combined with the service model options presented in the previous section, presents an overview of the diverse ways the programme can support clients.

The original Connecting Scotland model provided one-to-one support through the gift of devices, connectivity and training to people on a low income who were digitally excluded during the COVID-19 pandemic. While being a highly valued and impactful programme it also had several drawbacks and does not provide a sustainable model for improving digital inclusion during times of non-pandemic and over longer timescales. These drawbacks have been explained earlier in this document, but essentially, they hinge around the fiscal sustainability of the programme and the ability of end users to become digitally included in ways that are sustainable for them.

The proposal for the new programme is to instead adopt one-to-many models as solutions for digital inclusion that provide better value for money for government investment and enable support to be provided within a fixed cost base. While each of the models will support individuals with access to devices, connectivity and/or training, this will not always guarantee long term digital inclusion for the recipient. There will always be the risk that when their support ends people will face a cliff-edge and be digitally excluded once again. For this reason, each model needs to be accompanied by a ‘pathway to sustainability’ whereby individuals receiving support can achieve more long-term digital inclusion in a way that is sustainable for them.

The different models for connectivity are outlined below. Different solutions can be chosen according to the needs of each client or group. This allows the programme to deliver more flexibly and efficiently so the models are detailed below alongside benefits of each.

4.4.1 Hub Connectivity (fixed Wi-Fi connectivity at a site)

Like existing library provision, hub connectivity provides a place where citizens can access free high-quality Wi-Fi, digital skills support, devices and a ‘front door’ to a range of support services relating to welfare, personal finances, employability and so on. Installing Wi-Fi connectivity in strategic locations such as community centres and within areas of deprivation allows many people to get online within a fixed investment profile. Positioning hubs where place-based support is already being provided and poverty alleviation programmes are in place (run by Local Authorities or third sector organisations) means that digital inclusion support can be used to boost the effectiveness of other support on offer.

For example, helping someone to complete their universal credit claim can be coupled with the skills training so that they are able to manage their UC journal independently and less likely to lose benefits through failing to complete entries. Hub Connectivity could also be combined with community ‘warm banks’ to add an additional level of support for those most affected by the cost-of-living crisis.

Hubs will be places where, through encouragement and support, people gain digital skills and gain confidence in using the internet and their device and are able to achieve this more by themselves. Hubs will also provide a ‘front door’ for digital inclusion assistance, including information about social tariffs and local digital inclusion support, such as repair shops, availability of refurbished devices and other modes of accessing digital support. A ‘bring your own device’ facility will allow clients to get advice based on platform they will be using away from the hub.

4.4.2 Device Libraries

Arranged through Mobile Managed Device Service offered by suppliers (that help meet GDPR requirement by ‘cleaning’ a device when it is returned), library provision would allow individual devices to be used by many clients. Device libraries can meet several types of need, including gaining access to a machine while a personal device is being repaired; where a specialist device is needed for a fixed period, such as completing a college course; or where someone wants to build confidence and digital literacy before committing to purchasing a device themselves. Device libraries can be incorporated as part of other many-to-one models, such as being available within Hubs.

Loan of devices provides bridging support for someone to buy a device for themselves and by building confidence in diverse ways. Someone with a limited budget can build confidence in which device they need by having options they can try without any financial outlay. Support for digital skills would be built in in ways depending on the context where the device library is deployed.

4.4.3 Recycling devices within the system

Devices that have been loaned several times and that are beyond their warranty can be ‘recycled’ within the system either to be gifted to someone with an acute need or become an available device on the refurbished device market. This would optimise the lifespan of the devices delivered within the new Connecting Scotland Programme, ensure they are used to their maximum capacity and contribute to the programme’s environmental benefits. This option improves an individual’s ability to be online in a way that is sustainable for them by helping to increase the availability of low cost or free devices within the system.

4.4.4 Pools of connectivity and devices managed by organisations on behalf of the client base

This model is a way that the new Connecting Scotland can supply elements of direct support for clients, particularly where there is acute need. In contrast to the original Connecting Scotland ‘gift’ model, this model works on a many-to-one basis. Instead of applying for devices and connectivity in fixed application rounds (the original mode), organisations are given a pool of devices and connectivity that they can distribute on a basis which they choose. This has the advantage that decisions about who is supported are made by professionals who understand their users’ needs best.

Allocation would be carried out through a portal supplied via Connecting Scotland and device delivery, collection and management would be handled by our supplier via a costed managed device service. This will ensure there will be a low overhead for participating organisations which will be crucial to ensure that running the system, whilst requiring staff time, does not become a drain on their resources. For each partner, an assessment of user needs, a detailed service design and a trial period will ensure a straightforward process for staff and clients. Use of the portal will also supply management data to support accountability and data to Scottish Government to assess impact of the scheme. When devices or connectivity are no longer needed by clients they will be returned to the pool and distributed to new clients as needed.

This model ensures a fixed annual cost for connectivity and device support and thus is considered better value for money than a gifting model. The duration of support will vary between clients, and it will be up to the supporting organisation to decide how it manages this. This approach is the one that will be deployed for the delivery packages proposed in the next section, which includes elements of direct support from the new Connecting Scotland programme. Victim Support Scotland and the Family Nurse Partnership will be our initial partners take part in a proof of concept. and followed by full delivery. They have been chosen on the basis that they can target support to those who have acute need and those within the priority family groups.

Given that clients will only receive support for a finite (if not fixed) duration then the sustainability for clients of this model is crucial. In many ways it forces us to address the sustainability problems of the original programme, where some users already face a ‘cliff edge’ as their connectivity runs out and their device breaks or becomes obsolete. Within this model it is crucial that the support package for clients includes help to transition to device and connectivity options that are sustainable for them and to ensure they have the skills and confidence to make this transition.

When developed, this package will link together several resources, such as information about affordable tariffs (which users find hard to navigate) and sources of refurbished devices (which users are often unaware of). It will benefit from the work undertaken in systems and capacity building activities to connect partners, both in the short term via better information and access to local resources, and in the longer term by engendering greater capacity and effectiveness within the system.

4.4.5 Promotion of social tariffs

Helping people to navigate a complicated broadband / connectivity market is one of the easiest ways Connecting Scotland can support people. A recent Ofcom report reveals that only 3% of those eligible for social tariffs take advantage of them and it is thought this is because they are not widely known about. Research from Connecting Scotland’s users shows that few are aware of social tariffs or some of the cheaper mobile connectivity packages on the market while Which research shows up to two thirds of those eligible have never heard of social tariffs^[44].

Based on Ofcom figures, it is estimated that there are around 340,000 recipients of Universal Credit who could benefit from a social broadband tariff, which could deliver upwards of £40M savings to people of Scotland. Systems and capacity building would include activities to promote uptake of appropriate tariffs across Scotland as well as influencing service providers to tune their offers to better meet the needs of recipients. We will look to influence even lower social tariffs and influence providers to market social tariffs more effectively to people who would benefit from them.

This is an option that improves an individual’s ability to be online in a way that is sustainable for them by helping them to navigate the market to find appropriate options.

4.4.6 Social Housing Connectivity

Roughly 30% of the Scottish population live in Social Housing, 20% of whom will have lower digital skills than average. There is approximately a 15% gap in internet access across social housing and other tenures and 25% of social renters have children. Lack of connectivity to these households has a direct negative impact upon educational attainment. Thus, supporting social housing providers to supply low-cost connectivity packages and skills support for their tenants will be an important way of delivering cost-effective one-to-many support at scale across Scotland.

While there are a few housing associations that already provide this type of service, there are barriers for many that arise from the nature of the housing stock, lack of easily adaptable connectivity models and lack of capacity within the association to develop this type of programme. Our partners in health and social care have an incubator programme looking at how to develop this area, the outcomes of which can be picked up and implemented by the new Connecting Scotland programme.

This is a possibility that improves an individual’s ability to be online in a way that is sustainable for them by supplying a low-cost connectivity possibility for their home.

4.4.7 Buying groups

Supplying centralised buying power and using government procurement frameworks could be a systems and capacity building activity that helps organisations providing digital inclusion support to buy devices and connectivity at a much lower cost than they are able to negotiate individually. All the organisations consulted in the development of this FBC indicate that price is a significant barrier to being able to increase the numbers of people they can support. This could be a significant way to bolster existing digital inclusion provision with a small amount of central investment and coordination. The commercial section of this FBC covers the existing relationships that can be used to develop this aspect of systems and capacity building activities.

4.4.8 Promoting discounts and supporting free services (e.g., device repair)

Provision of discounts or supplying certain services through Connecting Scotland, e.g., the repair of a broken device, could be a low cost and high impact way of supporting people on a low income to remain online. This type of intervention will be investigated as a sustainable long term support strategy for offboarding and for supporting organisations.

4.5 Critical Success Factors

To assess options using a consistent method, the team identified a set of critical success factors (CSF) closely related to those proposed by HM Treasury. This is a key part of the standard methodology employed for evaluating business case options and provides a useful framework to be able to score options against each other.

Critical Success Factors (CSFs), described below, were applied to each of the service model options in turn. Options were scored against each CSF within a range of -3 (where they didn’t perform against the CSF) and +3 (where it was estimated that they responded fully to the CSF).

The CSFs are outlined below.

CSF1, Strategic fit and business needs:

• Does this option align with Scottish Government’s digital strategy and digitally related policies?
• Does this option align with the Programme for Government?
• Does the option align with the National Performance Framework?
• Does this align with child poverty reduction targets?
• Does this align with poverty reduction policies?
• Does this support employability targets?
• Does this enhance equalities?
• Does this enhance fair access to equalities?
• Does this improve the uptake of digital services?

CSF2, Requirements fit / User Needs:

• Does the option meet identified user requirements as defined by the user needs emerging from the Connecting Scotland research?
• Does this provide access to a suitable device?
• Does this provide access to sufficient data allowance?
• Does this provide access to appropriate connectivity?
• Does this provide access to appropriate training and support?
• Does this allow for a benchmarked level of service?

CSF3, Potential Value for Money (VFM):

• Does this option provide ROI in terms of economy, efficiency and effectiveness?
• Does this help consolidate to a single spend for Government on digital inclusion?
• Does this help consolidate to a single spend for operational cost to the third and private?
• Does this offer procurement efficiencies through economies of scale?
• Does this enhance equality of life for people in Scotland?
• Does the future impact of this carry fiscal benefit for the people of Scotland? (Will it save them money in their pockets).

CSF4, Potential achievability:

• Is the scope of work to be delivered by this option sufficiently understood so that the Scottish Government can confidently deliver it?
• Can it be implemented to work with current third sector delivery models?
• Are the skills in the organization available to deliver and maintain the service or can they be found?
• What level of change is required to use this option at front line service delivery?
• Is the scope of work to be delivered by this option sufficiently understood so that the Scottish Government can confidently deliver a usable service within four years?

CSF5, Supplier capacity and capability (Devices and connectivity):

• Is the market able to support delivery of the preferred option?
• Are the selected contractual vehicles flexible enough to cope with the needs of the proposed option?
• Has the delivery of the option been proven previously on the marketplace?
• Is the delivery of the option awaiting Proof of concept to provide proof of impact and capabilities on the marketplace?
• Are the selected contractual vehicles flexible enough to cope with future service development?
• Are the skills in the organisation available to deliver and maintain the service or can they be found

CSF6, Supplier capacity and capability:

• Is the market able to support delivery of the preferred option?
• Are the selected contractual vehicles flexible enough to cope with the needs of the proposed option?
• Has the delivery of the option been proven previously on the marketplace?
• Are the selected contractual vehicles flexible enough to cope with future service development?
• Are the skills in the organisation available to deliver and maintain the service or can they be found?

CSF7, Potential Affordability:

• Does this option pay for itself in part or in full based on savings of the business case?
• Are sufficient funds available to deliver this option based on known implementation costs?
• Are contingency budgets available to cover for unknown budgetary requirements identified through optimism bias analysis?

CSF8, Extensibility and scalability:

• Does this option represent a financial risk for the Scottish Government, for instance in terms of delivery?
• Does this option represent a reputational risk in case of failure?
• Is this option scalable/sustainable?
• Does the option provide resilience for the service — (reducing single points of failure/ security risks e.g., data through systems processes and staff)
• Has the option been assessed or designed to be secure and is there a high associated level of risk?
• Does the option lock the Scottish Government into a supplier which will prove difficult to change?
• Does the option lock the Scottish Government into an architecture which they will not be able to change?
• Does this option enable public sector organisations to solve current operational problems?
• Does this option tackle inequalities?
• Does this option represent a reputational risk in case of failure?
• Is this option scalable/sustainable to respond to increasing or decreasing levels of digital exclusion in Scotland?
• Does this option simplify the operation of the service?

Each CSF was given the following weights based on their relative importance to achieve the best outcome for the citizens of Scotland:

• CSF1 - 13%
• CSF2 - 14%
• CSF3 - 12%
• CSF4 - 14%
• CSF5 - 10%
• CSF6 - 12%
• CSF7 - 10%
• CSF8 - 15%

Each of the categories was scored by a team member with the expertise in the category and checked by a different member of the team and agreement reached over any discrepancies. The outcome of the exercise with weighting applied is summarised in the table below. Option 2 scores most favourably across the balance of criteria.

CSF Ref	Description	Option 1	Option 2	Option 3	Option 4	Option 5
CSF1	Strategic and Business fit	-0.39	0.39	0.35	0.39	0.36
CSF2	Requirements fit/user needs	-0.42	0.14	0.28	0.28	0.28
CSF3	Potential value for money	-0.36	0.2	0.24	0.26	0.24
CSF4	Potential achievability	0.252	0.02	-0.08	-0.22	-0.25
CSF5	Supplier capability and capacity (Devices & Connectivity)	0	0.18	0.18	0.18	0.18
CSF6	Supplier capacity and capability (Skills training and additional support services)	0	0.26	0.26	0.26	0.26
CSF7	Potential affordability	0.26	0.2	-0.133	-0.3	-0.17
CSF8	Extensibility and Scalability	-0.1	0.125	0.125	0.025	0.025
	Total	-0.66	1.53	1.22	0.87	0.96

4.6 How the proposed service model options meet programme goals

The following section considers how the options outlined match the project goals stated in the strategic case and how each of the options will deliver the benefits of digital inclusion for individuals and for society.

Goals of the new Connecting Scotland programme:

• Bring more people online. Get people sustainably online though motivation, skills, and access to devices and connectivity
• Prioritise those with urgent need and align with government priorities. Ensure support for those in urgent need and align support for delivery government priorities (inc. child poverty, health, social care, employment and education)
• Ensure that getting online is affordable. Increase opportunity in terms of connectivity and how this can be affordable for all
• Remove barriers organisations face delivering digital inclusion. Bring all digital organisations under one alliance, where resources, expertise and knowledge is shared in a collective manner to build the digital capacities of our nation
• Ensure the programme is affordable. Explore, implement and promote affordable and sustainable options for Digital Inclusion

Outcomes delivered if these goals are met:

• People can access the benefits of being online to improve their wellbeing and their financial situation. Deliver the societal benefits of digital inclusion including Reducing inequality, reducing poverty, a more skilled workforce, higher levels of education, cheaper and more effective delivery of government services, lower unemployment and a healthier population.
• Reduction in inequality and poverty. Boost outcomes of government programmes - greater employment, more access to healthcare etc
• Reduction in inequality and poverty.
• Increase efficiency of DI provision across Scotland
• Maximise the delivery of the above outcomes
• Delivery of the above outcomes provides value for money. Using one-to-many approaches could lead to more affordable solutions. Systems and capacity building would make digital inclusion activities being delivered by existing organisations more efficient and effective at a low cost to SG.

How far the proposed options will go to meet these goals:

• Options 2, 3, 4 and 5 contribute directly to this goal by funding one-to-many initiatives to get people online.
• They will also bring people online via systems and capacity building work. Improved systems and capacity will provide sustainability for people to stay online
• The greater reach of Options 2, 3 and 4 in getting people online would mean that support could align with many government priorities.
• Option 2 would also meet this goal indirectly via systems building although it would offer less potential to align directly with government priorities and urgent need.
• Options 2, 3, 4 and 5 support people to get online. People will be able to get online via partnership programmes for free. With greater funding, a wider range of groups can be targeted to more broadly tackle inequalities
• Systems building would have a direct impact though intensive work with organisations and addressing the barriers they face (Options 2 to 5).
• Funding for partnership programmes will help us learn how organisations can be best supported and help make the system and capacity building work more effective.
• Options 2 to 5 will involve one-to-many models of support as cost effective alternatives to the gift model of the original programme.
• Systems and capacity building (included in all options) would make digital inclusion activities being delivered by existing organisations more efficient and effective at a low cost to SG.

4.7 Conclusion

From the critical success factor scoring and consideration of the current financial restrictions, options 2 is the recommended option. Option 2 offers full systems and capacity building activities that will maximise the effectiveness of existing digital inclusion work already taking place across the third sector, government and industries. Where other departments have funding in place, Connecting Scotland will help them to identify and procure solutions that provide best value for the public purse and to connect them up with organisations that can provide support and training for their clients. This option also expands the level of support available to departments that have no identified funding, to provide limited amounts of capital funding and advice on accessing grants and external funding sources.

Option 2 has a high value for money aspect, as full delivery of systems and capacity building activities will be a key investment in the digital inclusion landscape that activates, connects and extends existing provision. Investing in partnership programmes helps set the foundation for future-focussed programmes.

Connecting Scotland will have to work alongside other SG departments where digital inclusion aligns with their policy outcomes – including areas such as Health, Housing and Social Care. The team will use the research, contacts and experience from running the programme during the pandemic to help other departments find the best solutions for their users. They will apply the principles of the Scottish Approach to Service Design alongside the output of research to ensure that solutions are designed according to user needs and that these are continuously updated.

Closure of the Connecting Scotland programme (option 1) is likely to have significant negative impacts on the digital inclusion landscape. With no support and no future or long-term co-ordination to enable digital inclusion, already disadvantaged people across Scotland will be further negatively impacted by the issues affecting digital accessibility. Closure of the programme would fail to build on the success of the original programme as those original recipients will have fewer opportunities to find options that are sustainable for them.

Option 2 scored highest critical success factor analysis (section 4.5), with Option 3 coming in second. The analysis balanced several criteria for successful delivery of a programme including aspects such as impact, viability, affordability. Options 3, 4 and 5 scored less well overall and particularly on affordability and achievability due to uncertainties associated with the larger ambition of these options.

However, options 3, 4 and 5 fared better with strategic and business fit as greater reach would mean better outcomes in relation to the National Performance Framework and policy objectives. Despite this greater reach, particularly of options 4 and 5, the capacity and systems building work which is built into all options should have a significant impact on digital inclusion rates over 3 to 5 years reducing the need direct intervention by programmes like Connecting Scotland in the longer term. This mitigates against options 3 and 4.

Options 3, 4 and 5 have been ruled out due to the current financial climate and the levels of funding required, although there is room to look at how options 4 and 5 are balanced and direct more resources in option 2 to urgent needs support. Discounting options 3, 4 and 5 means that none of the recommended options would meet the SNP manifesto commitment of delivering internet connectivity to 300,000 people by the end of the current Parliament. The reputational risk this involves must be balanced by a recognition of the changed circumstances in terms of funding and government priorities since this Manifesto commitment was made.