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The 2026 Budget: What Does It Mean for Digital Inclusion?

IFB Gaming | Digital Inclusion and Public Policy

The 2026 Budget: What Does It Mean for Digital Inclusion?

The Government is investing in AI, technology, skills and local growth. But what does that mean for people who struggle to get online, young people looking for opportunities, and communities that need more support to participate in digital life?

Published: October 2026 · A plain-English explainer from IFB Gaming

The Chancellor’s Budget is about more than taxes and public spending. It also helps set the direction for the country’s economy, public services, technology and employment.

In the Budget published on 28 October 2026, the Government announced measures covering AI, local growth, public-service reform and employment. These areas matter to digital inclusion because people need more than an internet connection to benefit from a society that increasingly relies on digital technology.

At IFB Gaming, we see digital inclusion as the connection between access, skills, confidence and meaningful participation. The Budget creates some opportunities to advance that work, but it is important to understand what has actually been funded and what still needs to happen.

The central question: As the UK invests in new technology, how do we make sure people have the access, knowledge and support they need to benefit from it?

1. What has the Government announced?

Here are some of the key commitments in simple language and why they could matter to digital inclusion.

AI and local communities £30 million

Local AI partnerships

The Budget provides £30 million to pilot local partnerships that will help businesses adopt AI, develop people’s skills and improve public services. The initial pilots involve authorities in West Yorkshire, South Yorkshire, and York and North Yorkshire.

Why it matters: AI adoption needs people who understand how to use these tools, what their limitations are and how to use them responsibly.

Public services £15 million

AI Challenge Prize

The Government is funding a competition to encourage new AI solutions for public-service challenges. Its first focus is healthcare.

Why it matters: Technology can improve services, but people must still be able to access them, understand them and get help when digital systems create barriers.

Young people Nearly 1 million

Young people outside education and work

The Budget highlights the number of young people who are not in education, employment or training, often described as NEET.

Why it matters: Digital confidence and practical technology skills can support learning and employment pathways, when connected to appropriate training and opportunities.

Skills and employment £100 million

Local apprenticeship services

The Budget provides funding for local apprenticeship services, helping strengthen the support available around apprenticeship opportunities.

Why it matters: Young people need routes from learning into real opportunities, not just access to devices or online resources.

Figures and descriptions are drawn from the UK Government’s Budget 2026 publication. They refer to different programmes and should not be added together as a single fund for digital inclusion.

2. Did the Budget provide new funding specifically for digital inclusion?

This is an important distinction. The Budget includes investment in AI, skills, technology and local growth, but it does not announce a dedicated new national funding pot specifically for digital inclusion.

Digital inclusion is about more than providing a device or getting someone connected. People may also need help using online services, developing essential digital skills, understanding AI, staying safe and building the confidence to participate independently.

These needs do not disappear when new technology is introduced. In some cases, they become more urgent.

What this means: The Budget provides relevant policy opportunities, but organisations working in digital inclusion will still need to identify specific programmes, local priorities and funding routes that can support their work.

3. What about AI literacy?

AI is increasingly being used in workplaces, public services, education and everyday life. Knowing how to access a digital tool is not the same as understanding how to use it well.

AI literacy can include learning how AI works, recognising its limitations, protecting personal information, checking information before relying on it and understanding when human judgement is needed.

The Budget’s investment in AI adoption creates a reason for organisations to consider how people will develop the skills and confidence to benefit from these changes. However, the local AI pilots are not a general grant scheme for every organisation, and they are initially focused on three areas outside London.

For digital inclusion practitioners, the wider lesson is clear: technology investment and investment in people’s ability to use that technology need to be considered together.

4. What does this mean for young people and NEETs?

Young people need opportunities to learn, build confidence, explore their interests and progress towards further education or employment.

Digital skills can be part of that journey. Depending on the young person’s interests and support needs, this might include using online services, learning about AI, exploring creative technology, developing problem-solving skills or discovering routes into digital and technology careers.

Gaming can also provide a starting point for conversations about digital creativity, online communication, accessibility, safety and participation. But gaming activities should be connected to clear learning outcomes and genuine progression opportunities if they are intended to support employment or skills development.

The Budget’s employment and apprenticeship measures may create opportunities for local partnerships. They do not mean that every community project is automatically eligible for funding, or that participation in a gaming programme counts as an apprenticeship.

5. Where does mental health and wellbeing fit?

Digital wellbeing is an important part of helping people participate confidently in modern life. For families, this can include conversations about healthy gaming habits, online interactions, accessibility, privacy and balancing digital activities with other parts of everyday life.

The Budget should not be presented as having created a dedicated new fund for youth mental health through gaming. Instead, wellbeing can be included in community learning and digital participation work where it fits the programme’s purpose and is supported by suitable expertise.

For IFB Gaming, this means helping families and practitioners understand gaming more confidently, while recognising that specialist mental health support must come from appropriately qualified services.

6. What could the Budget mean for IFB Gaming?

IFB Gaming works at the intersection of gaming, digital inclusion, learning and social participation. The Budget does not name IFB Gaming or promise funding to the organisation. Nevertheless, some of its priorities provide useful starting points for partnership conversations.

Digital Inclusion Toolkit

The Toolkit can help people and frontline organisations think about digital inclusion as a combination of access, skills, confidence and participation. It can be introduced to local partners as a practical resource for supporting digital learning.

Explore the Digital Inclusion Toolkit

IFB Stage Index

The Stage Index aims to connect people and organisations with relevant support. This could be useful in local partnership discussions about service navigation, referrals and identifying gaps in provision.

Explore the Stage Index

AI literacy and digital confidence

IFB can explore partnerships that help people understand AI, develop practical skills and use digital tools more confidently. Any proposal should set out who it will support, what participants will learn and how progress will be measured.

Explore IFB’s digital inclusion resources

Gaming guides for families

IFB’s Gaming Guide series supports conversations about gaming, accessibility, safety, wellbeing and positive participation. It gives families and community practitioners a practical resource to use alongside their wider digital inclusion work.

Explore the IFB Gaming Guide series

Empowering Futures and community delivery

IFB can explore partnerships with councils, community organisations, education providers and employment services to deliver structured learning and digital participation activities. Each proposal would need to match the partner’s objectives and funding requirements.

7. What should happen next?

Government announcements only become meaningful opportunities when they translate into programmes, partnerships and delivery on the ground. For IFB Gaming, the next step is to understand how local organisations plan to respond to the Budget and where digital inclusion can contribute.

  • Ask local authorities about upcoming digital skills, AI adoption and community learning programmes.
  • Speak with employment providers, colleges and youth organisations about existing routes into skills and work.
  • Explore whether IFB’s resources could support an established programme or partnership.
  • Identify relevant funding rounds and check eligibility before preparing an application.
  • Set clear measures for participation, learning, confidence and progression.

This approach avoids assuming that a national announcement automatically creates an accessible grant. It focuses instead on finding the right programme, partner and outcome.

Our perspective: investment in technology must include people

The 2026 Budget places attention on AI, public-service transformation, skills and economic opportunity. These are important areas, but the benefits of technological change will depend partly on whether people can access and use the tools and services being introduced.

Digital inclusion should therefore be considered alongside technology investment, not as an afterthought. Communities need appropriate access, practical learning, trusted support and opportunities to participate.

For IFB Gaming, the Budget is a reason to strengthen conversations with local authorities, community organisations, education providers and potential delivery partners. It is not a guarantee of funding. The task now is to connect our work to real needs, build partnerships and demonstrate what effective support can achieve.

Explore IFB Gaming’s work

Discover our practical resources for digital inclusion, community participation and understanding gaming.

Digital Inclusion Toolkit Stage Index Gaming Guide Series

Further reading

Read the official publications behind this explainer:

This article summarises selected Budget measures in plain English. It is not a comprehensive account of every Budget announcement or a guarantee that IFB Gaming or any other organisation is eligible for a particular funding programme. Programme details and eligibility should be checked with the relevant funding body.

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