Digital skills mean that you can follow a step-by-step process of creating an email account. Digital literacy means that you can recognize spam, know why it is being sent, and understand how email providers use filters to minimize potential harm.
Digital skills mean that you know how to use Microsoft Word. Digital literacy means that you can use Microsoft Word to clearly and effectively communicate all the key components of an assignment.
Digital skills mean you can show someone how to borrow e-books. Digital literacy means that you know why some e-books aren't available in New Zealand libraries, even though those same e-books can be purchased online.