Closing the Essential Digital Skills Gap: Why This Matters Now More Than Ever
A landmark new report by FutureDotNow and CEBR puts the case beyond doubt: the UK’s essential digital skills gap is not only holding back individuals — it’s holding back our entire economy.
At Cosmic, we’ve long championed the importance of digital confidence and capability for everyone in the workforce. But the new report, The Economic Impact of Closing the Work Essential Digital Skills Gap, takes this a step further — with compelling data that shows the direct and lasting benefits for productivity, profitability, and personal prosperity.
As a digital skills and inclusion leader in the South West and beyond, this new evidence both validates and energises our mission. Here’s why we believe this is such a pivotal moment — and what Cosmic plans to do next.
The hidden issue is now in plain sight
For too long, the essential digital skills gap has been underestimated or misunderstood. The headline finding from the report is stark: 52% of the UK workforce still lack at least one of the 20 essential digital skills needed for work. Without action, it will take 25 years to close the gap — yet AI and automation are transforming workplaces today.
Want to know what the skills are? Check out the Essential Digital Skills Framework which reflects the range of skills people need to safely benefit from, participate in and contribute to the digital world of today and tomorrow, in life and at work.
The report finally quantifies the scale of the opportunity if we address this challenge head-on:
£23 billion annual boost to UK productivity
£10 billion increase in workforce earnings
£8.5 billion boost to industry profitability
This is about so much more than digital inclusion — it’s about national economic performance, social mobility, and future prosperity.
Essential means essential
One of the strongest messages in the report is that these are not advanced or technical skills. They are foundational and universal. Things like:
Sending emails and using productivity tools
Accessing payslips and digital records
Protecting privacy and staying safe online
Collaborating with colleagues through Teams or other workplace platforms
The gap is not confined to any one sector or demographic. In fact:
65% of construction workers and part-time employees lack all essential skills
63% of older workers and 62% of people with impairments are also impacted
Even among 18–24-year-olds, nearly half (48%) are missing essential digital skills
This is why Cosmic’s work focuses on workplace-based, accessible training that meets people where they are — not where the tech world thinks they should be.
Business gains are clear — and workplace training works
The report highlights something Cosmic already sees every day in our programmes: Workplace training makes the biggest difference. People who receive digital skills support through their employer are far more likely to become digitally confident. This, in turn, drives productivity, business resilience, and retention.
For businesses, the return on investment is now proven. Upskilling digitally underpowered workers leads directly to:
Higher output per hour (Gross Value Added)
Greater profitability
Increased employee retention and performance
Dr Dave Smith, National Technology Adviser, puts it simply:
“This report makes it crystal clear: investing in essential digital skills delivers real benefits for individuals, for businesses and for our economy. As technology reshapes every sector, businesses without basic digital capabilities risk being left behind. More importantly, individuals will also be left behind. That’s why building essential digital skills in their workforce must be a strategic priority for business.”
This reinforces why Cosmic’s programmes are designed to support employers in embedding digital skills as part of their workforce strategy — not just as a short-term fix, but as a long-term driver of success.
And, thanks to the new FutureDotNow Calculator, which is available to members via the portal, organisations can now model their own potential economic gains from closing the skills gap.
Two worked examples are shown below, taken from the report: one for a mid-sized construction firm in the North-West of England, and one for a large retailer in London.
Cosmic’s response: turning national ambition into regional action
At Cosmic, we see this report as a catalyst — and a call to do more.
We will:
Continue working in partnership with local authorities, LEPs, business groups and education providers to build joined-up digital skills pathways in our region.
Embed the report’s evidence into our employer engagement, making sure leaders understand the economic case for investment in Essential Digital Skills.
Expand our workplace-focused training offers, making Essential Digital Skills a core part of our consultancy, funded programmes and bespoke solutions.
Use our experience to help organisations develop modular, bitesize and contextualised learning — particularly for those furthest from traditional education routes.
The scale of the challenge is huge. But so is the prize.
Join us on the journey
This report is the clearest evidence yet that closing the essential digital skills gap is not only achievable — it is economically essential. At Cosmic, we are proud to be at the forefront of this mission, helping organisations of all sizes to empower their people and secure their future in an increasingly digital world.
If you’re ready to be part of this movement and want to explore how Cosmic can help, we’d love to hear from you.
