Yesterday's budget blew out of the water the Department of Trade and Industry's Home Computer Initiatives - schemes (described as loans) that, effectively, let companies sell PCs to their employees for two-thirds or less of the cost price.
After April 6, tax of £200 or more (plus national insurance payments) will be levied on any new scheme. On the up side, that does mean there is still a small window of opportunity for new schemes to be put in place before April 6.
What's always fascinating when changes of this sort take place is to see what has been said by government before and after. A visit to the DTI's HCI web pages brings up some great quotes explaining why HCI schemes were put in place and justifying their existence.
* The real beauty of HCI
schemes is that they have the potential to improve performance in
almost every area of the organisation. As well as traditional drivers -
reducing costs, increasing profitability - they can also contribute to
more recent imperatives such as corporate responsibility, individual
learning and workplace development.
* HCI schemes can also help organisations increase their performance by raising the potential of the workforce through improved ICT skills.
* [With improved ICT skills] employees can also adapt more easily to new roles and opportunities and take advantage of online learning and other computer-based training contributing to a broader skills set.
* As well as improving workplace skills and boosting learning, there are many ways that a computer acquired through an HCI scheme can make a positive difference to the overall quality of home life, from online shopping and financial management to multi-media entertainment and education.
* 51% of employees [with HCI-supplied PCs] say they have learnt skills which have helped at work
In contrast, the budget statement makes no claims for the usefulness of
HCI and nor does it explain why such schemes are no
longer valid. Instead it simply says, * HCI schemes can also help organisations increase their performance by raising the potential of the workforce through improved ICT skills.
* [With improved ICT skills] employees can also adapt more easily to new roles and opportunities and take advantage of online learning and other computer-based training contributing to a broader skills set.
* As well as improving workplace skills and boosting learning, there are many ways that a computer acquired through an HCI scheme can make a positive difference to the overall quality of home life, from online shopping and financial management to multi-media entertainment and education.
* 51% of employees [with HCI-supplied PCs] say they have learnt skills which have helped at work
Many employees have
benefited from the tax exemption to get a computer into their homes,
but the Government now wishes to focus support on groups with the
poorest access to technology, to meet the goals set out in the Digital
Strategy. As a result, the Govenment has decided to remove
the current tax exemptions for employer-provided computer equipment,
from 6 April 2006.
So, was HCI a clunker or actually something that had real benefits to the nation? Let us know your thoughts about the scheme and its withdrawal in the HEXUS.community.
HEXUS.links
Department of Trade and Industry's - Home Computer Initiatives
Prime Minister's Strategy Unit - Digital Strategy
BBC - full list of official budget documents (PDF format)
