Burnham government to scrap UK digital ID plans in policy reset

Funding to be redirected towards cost of living measures

Prime minister-designate Andy Burnham is set to abandon plans for a government-backed digital identity system for British adults.

Burnham, who is due to be appointed by King Charles III today, will instead redirect funding and government effort towards easing pressures on household finances and supporting local economies, according to his office.

The decision brings an end to a policy that has undergone several revisions since it was first proposed by Sir Keir Starmer and has faced criticism over cost, privacy concerns and its implementation.

Focus shifts to cost of living

Burnham's team said the incoming government wanted to concentrate on issues that have a more immediate impact on people's daily lives, rather than continuing work on a nationwide digital identity programme.

A spokesperson told the BBC that resources previously allocated to the scheme would instead be channelled into areas such as tackling the cost of living and strengthening local communities.

Speaking on BBC One's Sunday with Laura Kuenssberg, Deputy Labour leader Lucy Powell defended the decision, saying the savings involved were substantial and would be redistributed across other government priorities.

She added that the shift was not solely about financial savings but also about ensuring the machinery of government focused on delivering Burnham's wider programme.

A controversial scheme

The digital identity proposal was first unveiled ahead of Labour's annual conference last year, with Starmer arguing it would modernise public services while making it more difficult for people to work illegally in the UK.

The scheme was also intended to simplify access to government services by allowing people to verify their identity digitally instead of relying on paper documents such as utility bills.

However, the plans quickly became controversial.

The Office for Budget Responsibility estimated the programme could cost £1.8 billion over three years, although Downing Street disputed that assessment.

Public opposition also mounted, with nearly three million people signing a parliamentary petition against mandatory digital identification.

In response, ministers abandoned the compulsory element of the proposal in January and relaunched it as a voluntary service.

The revised plans envisaged a single digital platform through which users could access a range of government services, including childcare support and tax administration.

Critics divided over decision

Despite the government's changes, scrutiny of the policy continued.

In May, the Home Affairs Committee concluded that ministers had mishandled the proposal, describing its introduction as poorly planned and warning it had fuelled concerns about excessive state intrusion.

The committee's report concluded the announcement had failed to explain convincingly why digital IDs were needed.

The Conservatives have questioned whether Burnham's announcement represented a genuine policy reversal.

Shadow technology secretary Julia Lopez argued that mandatory digital identification had already been abandoned following opposition pressure and accused Burnham of attempting to claim credit for a decision that had effectively already been made.

She said the new prime minister should clarify whether the earlier changes under Labour had been genuine or whether the latest announcement was simply a rebranding of an existing policy.

Liberal Democrat MP Lisa Smart said many people would be "hugely relieved" that they would no longer be required to hand over personal data simply to carry out everyday activities.

"We have long said the obscene sums earmarked for digital ID would be a huge waste of taxpayers' money, and it's a relief that Burnham has woken up to that" she said.