Millions of people will miss out on the benefits of digital information and communication because they cannot use the systems and services on offer.
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The people that could benefit the most from online government services could miss out unless the government addresses issues that impact digital inclusion.
According to the research from the Inclusive Digital Economy Network (IDEN), accessibility, affordability, usability and the socio-technical environment all affect digital inclusion.
The digital services included in the report include commercial transactions and remotely offered services such as wireless internet.
The IDEN said that the government must make the digital economy more inclusive if it is to improve public services.
"The government needs to develop policies to make the digital economy more inclusive, particularly for older and disabled people, by addressing the key challenges and working with organisations, such as charities, to raise awareness of it," said the IEDN.
Alan Newell, IEDN principal investigator, said,"It is economically, socially and morally essential to provide a truly inclusive digital economy. The people who are currently digitally excluded are the same people who could benefit from, and are more likely to be in need of, digitally provided services."
Newell said as people get older it is harder to use computers because technology moves so fast it quickly becomes unfamiliar.