Martha Lane Fox, the government's digital "tsar", is working to bridge the digital divide and hopes this can be achieved by offering a computing package, complete with telephone, for less than £100.

The scheme, which is launched this week, is only at the pilot stage but Ms Lane Fox hopes it can be extended across the country. The £98 package will be sold through 60 UK online centres and Remploy, a company which is refurbishing and selling the PCs, hope to shift more than 8,000 this year.

Ms Lane Fox told the Financial Times: "Motivation and inspiration are still two of the biggest barriers [to using the internet], but clearly perception of price is another big deal for people. A good price point is certainly part of what helps people get online.