Harnessing the potential of new digital forms of identification

Status / emerging findings

• Government reversed mandatory digital ID requirement after 3 million-signature petition, but made digital verification for right-to-work checks mandatory from 2029—individuals can still use third-party providers or existing documents rather than government-issued ID
• Digital ID is already in use: 44% of UK citizens use it for banking and right-to-work checks via existing trust framework, and private sector providers conduct 5 million UK checks and 2 billion global checks annually
• Identity fraud costs UK £1 billion annually; digital ID could save £1.7 billion in compliance costs—but only if system is designed to prevent it becoming a fraud target itself through surveillance scope creep
• Government cost estimates disputed: Office for Budget Responsibility says £1.8 billion; government has not yet published its own figures pending consultation
• Committee warns government's policy development was 'back-to-front'—think tank report and media announcements preceded rigorous policy work, public consultation, and evidence gathering

Why it matters

The government is building a permanent digital identity system that will touch millions of workers and citizens; how it's designed now determines whether it reduces fraud and simplifies life or becomes a mass surveillance tool—and whether it excludes the most vulnerable.

Tone arc

Inquiry opened cautiously exploratory (November 2025, examining benefits vs risks), shifted sharply critical after January 2025 session revealed employer compliance chaos and vulnerable worker exclusion risks, then became consultative-skeptical in final March session as government clarified revised policy, with committee expressing concern about lack of cost transparency and implementation roadmap.

Key witnesses

Darren Jones MP (Chief Secretary to the Treasury), Mike Tapp MP (Immigration Minister), Professor Edgar Whitley (LSE, digital governance expert), Laura Foster (techUK), Silkie Carlo (civil liberties, surveillance concerns), Dr Kuba Jablonowski (Association of Digital Verification Professionals), Monique Hawkins (Institute of Directors, employer perspective), Alexander Iosad (Tony Blair Institute)