Nesta Challenges: Can technology ever be expected to solve societal inequalities?

By Tris Dyson, Managing Director, Nesta Challenges 

Even before COVID-19 appeared on the scene, there were major divisions in UK society, and it’s undeniable that the pandemic has made these even deeper. 

Research by The Health Foundation found that people in lower income households are much more likely to be in overcrowded accommodation, and also more likely to be in an overcrowded household with an adult aged over 75 or someone with an underlying health condition. 

Not only have low-paid workers been far more susceptible to COVID-19, they will also feel the major economic and human consequences of the virus most keenly – both now and beyond the immediate crisis. Other workers – including under-25s who are just beginning their careers and people in insecure jobs (such as gig economy workers and freelancers) – are equally as financially precarious. 

The digital Dunkirk

In order to support those impacted, you might remember how, at the start of the pandemic, Boris Johnson called on the country’s tech firms to join the COVID-19 fight in a ‘digital Dunkirk’. But how fair was it for our Government to expect technology to solve deeper, wider, societal problems? 

Fintechs and other tech companies have responded rapidly to the crisis with innovative solutions, such as salary advance schemes, income smoothing solutions and automated savings apps. But if someone’s income simply isn’t high enough in the first instance, then these new tools will never have a big enough impact. 

In response to the initial economic shock facing households, the UK Government was able to quickly implement generous support schemes. But these are not sustainable and nor do they address the underlying societal issues which will take far longer to change. 

With more people expected to lose their jobs over the next months due to the tighter restrictions and the economic downturn, the need for sustainable solutions that will support people in the medium term has never been more urgent – and this is where tech can come in.

Giving the Government a boost 

Wide-reaching societal reforms can take many months or years to have an impact, both for policy changes to go through and for the benefits to trickle down to those in need. Many people simply can’t afford to wait this long and solutions that can have an impact in the interim are desperately needed.   

At a time like this, innovation can play a crucial role and, just because it can’t solve everything, we can’t throw the baby out with the bathwater. 

It’s crucial that agile, innovative organisations step in. Fintechs, workertechs and charities, amongst others, now have a golden opportunity to support the most at-risk workers and fill the gaps.

The real benefits of inviting and encouraging innovation from organisations of all shapes and sizes outside of Government is their ability to pivot quickly and adapt to changing circumstances. They can think outside of bureaucratic constraints and make the most of their direct connections to end users with solutions which are often complementary to Government initiatives.

Taking on the Challenge 

At Nesta, we wholeheartedly believe that innovation is part and parcel of systemic change, and that by responding to end user needs we can shift the dial and design solutions that meet those needs. As such, we’re running a £2.8m challenge prize to find and help scale innovative tools and solutions that help these people access both financial support and jobs.

By directing money towards a clear goal, the  Rapid Recovery Challenge – funded by Nesta, in partnership with JPMorgan Chase Foundation and Money and Pensions Service – can ensure that the most beneficial solutions are accelerated. The Challenge is now closed for applications, with the semi-finalists to be announced in December.

Organisations taking part can then be part of the longer-term solution by using the insights they gather on low-income groups and the challenges they are facing, and feeding this into Government. In this way, they can become part of the bigger societal change that is needed in the future.