Incoming Prime Minister Andy Burnham will scrap the UK digital ID scheme when he takes office on Monday, redirecting government attention and resources towards the cost of living. The decision means people will not be required to obtain the proposed national digital identity, although employers will still have to carry out legal right-to-work checks.
Burnham’s team presented the move as an early change of direction after he was elected Labour leader on Friday. He is due to replace Sir Keir Starmer as Prime Minister after Starmer formally resigns and the King invites Burnham to form a government.
A spokesman for Burnham said the time and resources intended for the national identity scheme would instead be directed towards areas such as helping households with living costs.
The announcement does not immediately change any documents people currently use. Passports, driving licences and other approved records will continue to be used to prove identity and eligibility to work.
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Starmer announced the digital ID scheme in September 2025 as part of his government’s efforts to tackle illegal working and reduce one of the incentives for unlawful migration.
Under the original plan, every British citizen and legal UK resident would be offered a free digital identity containing details such as their name, date of birth, photograph, nationality or immigration status. The information would have been stored as a digital credential on a personal device rather than on a traditional physical identity card.
The Government initially said the document would become compulsory for right-to-work checks before the end of the current Parliament. Employers must complete these checks before hiring someone to confirm that the person is legally allowed to work in Britain.
However, Starmer later withdrew the requirement for workers to use one specific national digital ID after the proposal faced political and public opposition. The broader scheme was changed so that people could still use other approved documents and methods.
Burnham has now gone further by promising to cancel the national programme entirely.
The Office for Budget Responsibility estimated that the scheme could cost about £1.8 billion between the 2026-27 and 2028-29 financial years. That was a provisional estimate, and the previous government disputed it, saying the final cost would depend on decisions made after consultation.
It is therefore not yet clear how much money will actually be saved. Some expenditure may already have been committed, while parts of the Government’s existing digital infrastructure will continue to operate.
Scrapping the proposed national digital ID does not mean employers can stop checking whether new workers have permission to work in the UK.
The legal requirement to complete right-to-work checks will remain. Employers can currently use passports, immigration documents, online Home Office services and other approved evidence, depending on the worker’s nationality and immigration status.
Burnham is also expected to continue wider action against illegal employment. Reports suggest that planned legislation could extend right-to-work checks more fully to gig-economy and zero-hours work, although the final details will depend on legislation and official guidance.
The cancellation also does not mean that all digital methods of proving identity are being abandoned.
The Government already supports certified private digital verification services and operates GOV.UK One Login, which allows users to access some public services online. Those systems are separate from the proposed universal national digital ID.
Voter identification rules are also separate. People voting in person at elections must continue to follow the identification requirements in force at the time of the poll.
The digital ID proposal attracted criticism from opposition parties, privacy campaigners and some technology specialists. Concerns included the possible cost, the security of personal information and the risk of excluding people without smartphones or strong digital skills.
A parliamentary Home Affairs Committee report said the policy had been announced without enough detailed preparation or public consultation. It noted that a petition opposing mandatory digital identification had attracted nearly three million signatures.
Supporters argued that a secure digital identity could reduce fraud and make it easier to access public services, benefits, housing and employment. Official plans also included physical alternatives and face-to-face assistance for people unable to use smartphones.
The Conservatives accused Labour of wasting public money before abandoning the project. Burnham’s allies, however, said the decision showed that the new administration would review existing programmes and concentrate on priorities that directly affect households.