The UK government has abandoned plans to make digital ID mandatory for proving right to work by 2029, shifting focus to broader public service access instead. The U-turn raises questions about the £1.8 billion scheme's purpose, funding model, and whether mandatory digital checks will still proceed.
The UK government has retreated from its controversial plan to require digital identification for all right-to-work checks by 2029, marking a significant policy reversal that leaves fundamental questions about cost, funding, and purpose unanswered.
In September 2024, Prime Minister Sir Keir Starmer had declared that digital ID would become mandatory for proving right to work in the UK, stating unequivocally: "You will not be able to work in the United Kingdom if you do not have digital ID. It's as simple as that." The policy was positioned as a key tool for tackling illegal working and streamlining immigration enforcement.
However, recent statements indicate the government has fundamentally rethought the scheme's focus. Transport secretary Heidi Alexander told BBC Radio 4's Today program that the digital ID scheme will now be "less focused on immigration and put more emphasis on access to public services across the population." While digital right-to-work checks will remain mandatory, the digital ID itself appears to be shifting from an immigration control measure to a broader public service access tool.
This policy pivot comes amid mounting criticism over the scheme's escalating costs and unclear benefits. Earlier estimates suggested the digital ID system could cost taxpayers up to £1.8 billion. Whitehall has rejected this specific price tag but has consistently refused to provide alternative cost estimates, creating uncertainty about the true financial burden.
Silkie Carlo, director of privacy campaign group Big Brother Watch, welcomed the U-turn but argued the entire scheme should be scrapped. "The case for the government now dropping digital IDs entirely is overwhelming. Taxpayers should not be footing a £1.8 billion bill for a digital ID scheme that is frankly pointless," she said. Carlo also warned that mandatory digital right-to-work checks could introduce similar cybersecurity, fraud, and privacy risks as the broader digital ID scheme.
Funding model creates inter-departmental tensions
The retreat also intensifies questions about how the scheme will be funded across government. According to minister for digital government and data Ian Murray, technical delivery will be managed by the Government Digital Service (GDS) within the Department for Science, Innovation and Technology (DSIT). However, other departments using the system must contribute to its costs.
During a Parliamentary select committee hearing, Murray explained: "The cost of the entire system will depend on what the system looks like. Digital inclusion, all the bits that are attached to digital ID, and also the use cases from other government departments in terms of both the cost of having the system, the cost of running the system, and the savings that are subsequently made from having a much more efficient system."
Committee members expressed skepticism about this approach, noting that cash-strapped departments may struggle to justify contributions for a system whose benefits remain unclear. The government has not clarified whether contributions will be mandatory or voluntary, or how savings from efficiency gains will be calculated and redistributed.
Broader digital government challenges
The digital ID scheme's difficulties reflect wider problems with the UK's digital transformation efforts. The government is simultaneously developing the UK One Login system, intended to replace over 190 separate government login systems with a unified account for accessing public services. This system has faced its own delays and technical challenges.
A government spokesperson stated: "We are committed to mandatory digital right-to-work checks. We have always been clear that details on the digital ID scheme will be set out following a full public consultation which will launch shortly."
The spokesperson added: "Digital ID will make everyday life easier for people, ensuring public services are more personal, joined up, and effective, while also remaining inclusive."
What employers need to know
Despite the policy shift, businesses should prepare for mandatory digital right-to-work checks. The government has not indicated any change to this requirement, only to the digital ID scheme's broader purpose. Employers currently conducting manual document checks will need to transition to digital verification systems, though the exact timeline and technical requirements remain unclear.
The consultation process expected to launch soon will likely address:
- Specific technical standards for digital verification
- Privacy safeguards and data protection measures
- Accommodation for individuals unable to use digital systems
- Integration with existing employer systems
For now, the £1.8 billion question remains unanswered: how will this scheme be funded, what will it actually cost, and what tangible benefits will justify the investment? The government's U-turn on scope suggests even officials are still determining the answers.
The Register has contacted DSIT for further clarification on the revised scheme parameters and cost projections.
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