UK government considering digital identity card proposal

05/06/2025 | Financial Times

Labour MPs are supporting a proposal for a new universal digital identity card intended for anyone working or renting in the UK, which could eventually lead to the establishment of a comprehensive national ID system. 

A new white paper from the Labour Together think-tank advocates that the "BritCard" initiative would support immigration enforcement and simplify existing checks for landlords and employers. MPs in swing constituencies view a digital ID programme as a means to demonstrate control over irregular immigration, enhance access to government services online, accelerate healthcare and education reforms, while tackling benefits fraud and improving welfare targeting.

However, the proposal faces opposition from ministers wary of potential cost overruns and civil liberties backlash similar to those that led to the scrapping of Sir Tony Blair's compulsory ID card scheme in 2010.  

Yvette Cooper, Secretary of State for the Home Department, indicated that her focus is on digital IDs for those entering the UK rather than a universal system for all citizens. 

Despite government officials stating that there are no current plans for a mandatory national ID system, Labour Together argues that public attitudes have changed since the Blair era. Furthermore, the new proposal differs by leveraging existing data sources and avoiding a centralised database or physical card. Instead, eligible UK residents would be issued a mandatory digital credential on smartphones that can be instantly verified by employers and landlords via an app.

Labour Together estimates the implementation cost to be up to £400 million, with annual administration fees of £5-10 million. They suggest compulsory adoption for new rental or employment contracts from 2028.

The scheme is different from existing plans led by the Department for Science, Innovation and Technology (DSIT) to launch a new digital wallet allowing people to hold their driving licences and other government-issued documents on their smartphones.

In a statement responding to the news, Rebecca Vincent, interim director of Big Brother Watch, said: "It is unclear how such a digital ID system would deliver on promises to tackle illegal migration better than existing measures, such as the e-visa scheme. Employers have already been required to check the immigration status of employees since 1996. 

"The debate about digital ID isn't really about immigration; it's about access to, and control of, everyone's data."

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