"Starmer had previously argued that mandatory digital IDs were essential to knowing "who is in our country" and preventing illegal migrants from entering the shadow economy. However, officials now say the scheme will be repositioned as a convenience-led service designed to simplify everyday interactions with the state, such as registering births and deaths, opening bank accounts, booking GP appointments and accessing public services."
"Cost has also been a major sticking point. The Office for Budget Responsibility has estimated the scheme could cost up to £1.8bn over three years, a figure the government disputes but has declined to replace with its own estimate. Critics inside Whitehall warned that a mandatory system risked excluding older workers and those without digital access, particularly in rural areas."
Plans to make digital IDs mandatory for workers have been abandoned and the scheme will be optional when introduced in 2029. Workers will be able to verify right-to-work using passports or electronic visas instead. Growing unease within cabinet and on Labour’s back benches, concerns about undermining public trust, voter alienation and potential internal rebellion influenced the reversal. Cost, complexity and inclusivity concerns, together with falling public support after migration-focused messaging, also contributed. The Office for Budget Responsibility estimated costs up to £1.8bn over three years. The scheme will be repositioned as a convenience-led service for accessing state services.
Read at Business Matters
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