Labour Retreats on Digital ID, What’s Behind the Sudden Shift?

The digital ID plan once hailed as a cornerstone of UK immigration control has been quietly scaled back. After public backlash and political pressure, the government has dropped the only mandatory feature.

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UK digital ID card scrapped
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Digital identification cards will no longer be required to prove the right to work in the UK, after a significant policy adjustment by ministers. The reversal comes despite earlier pledges that digital IDs would be central to efforts to tackle illegal employment and immigration.

The digital ID system, originally set to be rolled out by 2029, had been introduced by Prime Minister Keir Starmer as a tool to strengthen border security and modernise public services. But following pressure from within the Labour Party and growing public opposition, the government has decided to drop the scheme’s only mandatory element, its use for employment verification.

This development marks yet another in a series of recent policy shifts by the Labour government, which has also scaled back on reforms to business rates and inheritance tax. Though officials insist the digital ID proposal remains alive, the decision to make it fully voluntary represents a substantial departure from its initial design.

Revised Plans Remove Only Binding Feature of Digital ID System

According to The Times, the government has walked back on its plan to enforce digital IDs for proving the right to work, the only component of the scheme that was ever set to be compulsory. While a digital verification process will still be used, it may involve standard documents such as passports or e-visas, rather than a purpose-built identity card.

Sources within the government reportedly cited concerns that the mandatory element had become a flashpoint in public debate, and risked alienating those unfamiliar with digital technologies. “We do not want to risk there being cases of some 65-year-old in a rural area being barred from working because he hasn’t installed the ID,” one official told The Telegraph.

The shift in policy follows an earlier government claim that digital IDs would “make it tougher to work illegally in this country”, as stated by the Prime Minister during the initial rollout of the plan. Opposition to the scheme had mounted rapidly since its announcement, with nearly three million people signing a petition against the proposal. Polling data cited by The Times also showed a drop in public support, with net approval for the policy falling from 35 percent to minus 14 percent in just a few months.

Political Backlash and Financial Pressure Contributed to Policy Change

The decision to abandon the mandatory element of the digital ID scheme has attracted strong criticism from opposition parties. Conservative MP Mike Wood described it as “yet another humiliating U-turn from the government”, stating that the policy had been “abandoned at the first sign of pressure from Labour’s backbenches”, according to The Guardian.

The Liberal Democrats echoed this sentiment, with Lisa Smart remarking that “No 10 must be bulk ordering motion sickness tablets at this rate to cope with all their U-turns.”

The government has insisted that its long-term goal of streamlining right-to-work checks remains unchanged. A spokesperson said: “We are committed to mandatory digital right to work checks,” adding that a full public consultation will be launched before final details are confirmed.

According to The Telegraph, internal financial constraints may also have played a role in the government’s decision. With the Office for Budget Responsibility estimating the scheme’s cost at £1.8 billion (an amount disputed by ministers) departments have reportedly been instructed to fund the project from existing budgets after the Chancellor declined to allocate additional resources.

Despite the reversal, Downing Street maintains confidence in the concept of digital IDs. Darren Jones, Chief Secretary to the Prime Minister, expressed optimism, stating at an event hosted by the Institute for Government that “polling will be a much better place on digital ID than it is today.”

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