Home computer users feeling left out after Gordon Brown pulled the plug on the Home Computing Initiative (HCI) can now take advantage of two new schemes.

HCI was set up to help tackle the digital divide between computer owners and those who could not afford one by providing computers to workers through employers.

However, it was reported that the Treasury had lost an estimated £300m in tax as a result, and that the scheme was not being used by those who really needed it.

Now two companies are stepping into the breach with separate schemes that aim to offer a similar service. PC retailer Watford Electronics will tonight launch its Redten Internet, which offers a free PC for anyone who signs up to a three-year broadband contract.

The computer, worth £500, is being supplied by LG, and contains a Pentium 4 processor with 512MB of memory and a 19in screen. The broadband connection costs £19.99 per month.

The computer belongs to the user, as long as they stay within the contract, a representative of Watford told Computeractive. Once the three years are up, the user can keep the PC, and even sign up for another contract and receive another computer.

The broadband connection is up to 8Mbits/sec, depending on local conditions, and the company says it will upgrade to 24Mbits/sec connections when BT makes them available.

Meanwhile, Red PC, which used to supply HCI computers, has set up its own Home Training Initiative. Although it doesn't have the same tax benefits as HCI, the new initiative allows employers to supply a PC to their staff at a discount rate. The employees have to sign up for computer training at a fixed cost, and are then loaned a free PC as part of the scheme.

Martin Prescott, managing director of Red PC, said that although it was more expensive than HCI, the scheme would still be cheaper than buying a PC outright.

While Watford's offer is available directly to consumers, the Red PC HTI is only available through participating employers. Anyone wishing to take part should ask their employer to contact Red PC on 0871 42 42 400.