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This item was published during the term of a previous administration that ended in April 2007

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PC lease scheme for public sector workers

01/07/2005

The government's aim of tackling digital exclusion in Scotland, by increasing the take-up of computers and internet use, has taken a significant step forward today.

The Home Computer Initiative will enable employers to provide loans of computers to employees for personal use. Staff in the participating public sector organisations will be able to lease PCs at affordable prices and will be able to spread costs over a longer period.

The Executive is establishing the scheme on behalf of the entire Scottish public sector and it will start being rolled out immediately.

Following an e-auction, BT/Dell have been given the status of preferred supplier.

Deputy Minister for Finance and Public Service Reform George Lyon said:

"The Executive is determined to tackle digital exclusion and I believe this initiative can help us achieve that by giving public sector staff the chance to lease PCs and get on-line. Without this scheme, there is no doubt many of those staff would be unable to do that.

"We know this scheme will be popular as it has a strong focus on choice, accessibility and inclusion. All public sector organisations in Scotland will be able to use BT/Dell or, alternatively, they can go with one of the other chosen suppliers, Fujitsu Siemens and Club IT.

"Participating staff will be able to select equipment that is right for them from as wide a range as possible, allowing many people and their families to benefit from affordable technology in their own homes."

Tom Kelly, General Manager, BT Government Scotland and Wales, said:

"We are very pleased to have this opportunity to assist people across the public sector in Scotland to switch on to the benefits of the internet for everyday use.

"Coming on the back of BT's contract with the Scottish Executive to bring broadband to the remaining small communities of Scotland, it means that as well as having access to a secure and reliable fast broadband network, thousands of people in every local authority area in the country will now also have the option of choice when it comes to best value computer equipment."

Grahame Smith, Assistant General Secretary of the Scottish Trades Union Congress, added:

"Promoting lifelong learning opportunities is a key priority for the STUC. By increasing public sector workers' access to computers at home, we expect that this welcome Scottish Executive initiative will make a significant, positive contribution in promoting lifelong learning."

The aim of the Home Computer Initiative is to contribute to the increase the take-up of PCs by households in Scotland. The arrangement will be confined to Scottish public sector employers and their employees. The arrangement will allow Scottish public sector employers to lease PCs, software and peripherals for home use by their employees. Around 400,000 employees could be eligible to participate.

The price paid by employees will be reduced through a tax concession. The 1999 Finance Act introduced a £500 annual exemption from the taxable benefit of computers loaned by employers to their employees for home use. This, when combined with a salary sacrifice arrangement between employer and employees, provides a framework which allows employees to make significant cost savings on acquiring a PC. An employer can lease up to £1,500 worth of equipment for home use to an employee free of tax.

The Executive's Home Computer Initiative involves contractual arrangements under which three suppliers - BT/Dell, Fujitsu Siemens and Club IT - are eligible to supply suitable PC leasing schemes to public sector organisations.

Given that the needs of employees vary significantly, suppliers will be required to make a broad range of computer equipment, software and peripheral devices available. The computer equipment available will need to include low cost entry level PCs. The provision of high quality technical support to the employee's home will also be a key element of the contract.

The Executive, and its agencies and NDPBs, all local authorities, and all health boards in Scotland will be eligible to participate in the scheme. It is a decision for each organisation if they wish to participate. Lease agreements will be constructed so as to minimise the administrative and support burdens for employers.

Page updated: Friday, July 01, 2005