The Gigabit Broadband Voucher Scheme

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The Gigabit Broadband Voucher Scheme (GBVS), formerly known as the Connection Vouchers program, is a tech adoption initiative in the UK.
What are the main aims and objectives?

The primary aim of the GBVS is to accelerate the rollout of gigabit-capable broadband to rural and remote areas that are unlikely to be covered by commercial broadband deployments. The scheme also aims to stimulate demand for high-speed broadband services. By offering vouchers to cover or subsidize installation costs, it reduces the financial barrier for individuals and businesses to upgrade their internet connections. This increased demand, in turn, helps to make the deployment of gigabit-capable networks more commercially viable for providers. Lastly, the GBVS supports the UK government's broader digital infrastructure goals. It contributes to the ambitious target of achieving gigabit-capable broadband coverage for at least 85% of UK premises by the end of 2025.

How does the program work?

The Gigabit Broadband Voucher Scheme (GBVS) operates as a government-funded initiative to accelerate the rollout of gigabit-capable broadband in rural and hard-to-reach areas of the UK. The scheme works by providing vouchers to eligible homes and businesses, which can be used to offset the installation costs of high-speed broadband connections.

Under the GBVS, vouchers are issued to cover or subsidize the costs associated with installing gigabit-capable broadband infrastructure. For residential properties, vouchers are worth up to £1,500, while businesses can receive up to £4,500. These vouchers are not paid directly to the beneficiaries but are instead claimed by registered internet service providers on behalf of their customers.

The scheme operates on a principle of community-led projects. Individual properties are typically not eligible for vouchers on their own. Instead, residents and businesses in a local area must come together to form a group project. This approach encourages providers to extend their networks to areas that might otherwise be commercially unviable, as the combined value of multiple vouchers makes the infrastructure investment more attractive.

To participate in the scheme, communities first need to check their eligibility on the official GBVS website. If eligible, they can then contact registered suppliers in their area to discuss potential projects. These suppliers are responsible for developing projects, aggregating voucher applications, and managing the installation process.

Once a project is approved and vouchers are issued, the internet service provider has 12 months to complete the installation of the new gigabit-capable connection. The provider then claims the voucher value from the government, reducing or eliminating the upfront cost to the customer.

What is the overall cost?

The initial launch in March 2018 was supported by a £67 million fund, which was utilized over a two-year period. The government allocated £210 million to continue the scheme until the financial year 2027-2028. 

How was it implemented?

The Gigabit Broadband Voucher Scheme (GBVS) was created as part of the UK government's broader initiative to improve digital infrastructure across the country, particularly in rural and hard-to-reach areas. The scheme's origins can be traced back to the government's commitment to delivering high-speed, reliable broadband nationwide.

The GBVS was developed as a component of Project Gigabit, a £5 billion program launched by the UK government to target areas where building digital infrastructure is more challenging and expensive. This project aims to extend gigabit-capable networks to premises that are unlikely to be reached through commercial rollouts alone.

The creation of the GBVS was driven by the recognition that while large-scale infrastructure projects are essential, there was also a need for a more targeted approach to help specific communities and individuals in rural areas upgrade their broadband connections. This scheme was designed to complement the broader Project Gigabit initiative by focusing on areas where there is no existing coverage or planned commercial coverage.

In developing the GBVS, the government took a consumer-centric approach. Instead of directly funding internet service providers, the scheme was structured to empower eligible homes and businesses by providing them with vouchers. These vouchers can be used to offset the costs of installing gigabit-capable connections, effectively putting the decision-making power in the hands of the end-users.

The scheme was also created with a community-focused mindset. By requiring group projects where two or more residents and/or eligible businesses combine their vouchers, the GBVS encourages community collaboration and makes it more attractive for providers to extend their networks to areas that might otherwise be commercially unviable.

What impact has been measured?

The GBVS has successfully increased gigabit-capable coverage across the UK, especially in rural areas where commercial rollout was unlikely. SMEs that have benefited from the scheme have experienced a substantial improvement in their broadband speeds, with new connections required to be at least double the current speed if below 50Mbps, or at least 100Mbps if above.

An impact assessment found that:

  • Businesses receiving vouchers experienced stronger employment growth compared to control groups.
  • The additional jobs created by voucher beneficiaries were in more productive roles, evidenced by higher wage premiums.
  • At the area level, vouchers appeared to help mitigate job losses during the COVID-19 pandemic.
  • 53% of residents reported increased life satisfaction after the broadband upgrade.
  • The net additional effect of vouchers on wellbeing is estimated to be between £32m and £54m per annum.
  • The total impact of vouchers on wellbeing, accounting for persistence, is estimated to be between £114m and £195m.
  • Vouchers led to a net reduction of 7,600 tonnes of CO2e over a three-year period, primarily due to reduced travel.
  • The total value of carbon savings is estimated to be £1.85m in 2022 prices.
  • Based on measurable impacts so far, the voucher schemes have delivered between £1.22 and £1.88 in benefits for every £1 of gross public sector spending.
What lessons can be learned?

The UK government’s analysis of the scheme found some challenges:

  • Inconsistencies in broadband coverage data made it difficult to assess impacts on availability at a local level.
  • Time lags in economic data limited the ability to measure full impacts, especially for later schemes like RGC.

They also offered several recommendations:

  1. Focus on areas with limited existing broadband options to maximize additionality.
  2. Consider longer evaluation timeframes to capture full economic impacts.
  3. Improve data collection on broadband availability to better assess coverage impacts.
  4. Continue to monitor social and environmental benefits alongside economic outcomes.

CURATED BY

Simona Bielli

Research Programme Coordinator – Digital Startups
Nesta
United Kingdom