New Digital ID Scheme Announced in the UK

Written By

callum granger Module
Callum Granger

Associate
UK

I am an associate in our commercial practice, based in London. I advise clients across the gambling, sports, media and entertainment sectors on regulatory, transactional and commercial matters.

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Elizabeth Dunn

Partner
UK

As a partner in Bird & Bird's Commercial team and a member of our Media, Entertainment & Sport Group based in London, my practice focuses on regulatory and commercial matters in gambling and sport.

The government has announced the rollout of a new digital ID scheme in the UK. Here we consider the areas that will be covered by the new scheme and how the announcement might impact the digital identity space in the UK going forwards.

Background

We have previously commented on the advancement of digital identities in the UK, most recently the announcement of the Gamma version of the UK digital identity and attributes trust framework, which was implemented to facilitate and encourage the wider adoption of digital identity technologies in the UK prior to the passage of the Data (Use and Access) Act 2025, which gave digital verification services statutory footing. Whilst these regulatory steps provide a pivotal foundation for the rollout of digital verification technologies, the UK has lagged behind various jurisdictions, and this latest announcement from the government indicates that digital identity technologies will be applied in the UK on a mandatory basis going forwards.

Announcement

The Prime Minister’s announcement has said that a new free digital ID scheme will be rolled out in the UK. The government has emphasised the importance of security at the heart of the system, stating that state-of-the-art encryption and authentication processes will be included to ensure identity theft is minimised and privacy and security are supported. 

The key aims of the scheme are:

  1. To enable people to access government services, including driving licence applications, welfare payments and tax records; and
  2. To prevent illegal working by making the scheme mandatory for Right to Work checks. Whilst digital identities have been used for Right to Work checks for some time now, making this a mandatory requirement is a significant shift.

The government had previously announced it would be launching a digital wallet, which would enable people to store digital versions of government issued documents, such as driving licences. However, the government’s current intention is now that it will issue each person in the UK with a digital ID, which will be accessed via the holder’s phone and include the holder’s name, date of birth, nationality or residency status and a photo, which will be used as a basis for biometric security. However, a consultation will occur later this year to consider whether including additional information, such as address, would be helpful, and how the digital ID can be accessed by those who may not have access to a smartphone, such as elderly and homeless individuals. 

The government has positioned the digital ID system as being modelled on systems in place in other jurisdictions, including Australia, Estonia, Denmark and India, where digital identification technologies have already enjoyed practical application in a number of areas including banking, health, welfare benefits and education.

Comments

The announcement is likely to attract huge media attention in the coming weeks. Framing the objectives of the scheme as a means of tackling illegal immigration will be a highly politicised matter, and the use of digital IDs in the UK has faced historic backlash in any event. Whilst the announcement has indicated that there will be no requirement for individuals to carry their ID or be asked to produce it, the mandatory application in Right to Work checks will attract a lot of political commentary. What is clear is that digital identity technologies in the UK are here to stay.

The next stage will be the consultation, when we will have more detail on the rollout and the exact form of digital ID that the government is considering implementing. We will provide further updates on the consultation process when they become available.

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