Digital ID

Statement

The following Statement was made in the House of Commons on Monday 13 October.

“I have always believed in giving people power and control over their lives: control over the public services they use and how they access childcare, benefits and housing support; control over their data, and who sees it; and control over the choices they make to rent or buy a home, apply for a job, open a bank account, and much more besides. In the age of the smartphone, we can take this control quite literally into our own hands, but too often it feels like we are at the mercy of a system that does not work for us as well as it should. It is one with endless form filling and bureaucracy just for people to prove who they are, and one where they may need their passport to apply for a job, their national insurance number to pay tax, and their driving licence to buy a pint or a glass of wine—if they are lucky enough to be asked. Most frustratingly of all, they may have to rummage around in a drawer looking for an old electricity bill just to open a bank account, join the library or enrol their children in school. It is time to fix this: to put power back in people’s hands; to get more out of our public services; and to bring the UK into the modern age.

There are three reasons why we want to introduce a new, free digital ID, available to all UK citizens and legal residents above the age of 16. First, it is about giving people greater agency over their lives. In over 15 years as a local MP, I have lost count of the number of people who have come to me because they have struggled to get the public services they need or had to battle for support from different parts of the welfare state. I am sure many honourable Members will know a frustratingly similar story. People are passed from one person to another, and asked to repeat their story and provide basic information time and again. They are made to fit into a system, rather than the system working for them, which ultimately leaves them feeling as though they are a number on a list, not a human being with a life.

Bringing in a new digital ID is about far more than replacing numerous bits of paper just for people to prove who they are. It is about changing the way the state interacts with its citizens through what I like to see as a new digital key that unlocks better, more joined-up and effective public services that actually talk to one another and fit around them. In building our new system, we will learn from the experiences of other countries, some of which have had digital ID for over 20 years. Many show us just how transformative this can be. In Denmark, a graduate applying for jobs has to log into a portal only once, and their ID automatically links to their school records, saving them retyping their qualifications each time. In Finland, a parent can go online to register their children for daycare without uploading a payslip or putting in their salary, and the site automatically calculates the right fee. In Estonia, a digital ID means that when someone has a baby, they do not need to go to a local office to register the birth, sign up for childcare benefits or apply for nursery places. That happens automatically from day one in the hospital, so parents are free to focus on what matters most.

Digital ID has the potential to empower millions of people in that way in the UK, with quick, effective, seamless and secure integration between different government systems. We know that the Tell Us Once service makes the process of registering a death more straightforward, but we should not have to wait until the end of someone’s life to offer them joined-up, personalised support. So our new system will help modernise government services to fit around people’s lives, rather than forcing them to fit into the system.

The second reason for introducing digital ID is to offer people greater security and, actually, greater control over their own data. Other countries that have introduced digital ID find that digitally checked credentials are far more secure than physical documents. They are much less likely to be lost or stolen, they have reduced errors and mistakes, and they have helped crack down on fraudsters who can ruin people’s lives. Privacy and security will be hard-wired into the system from the start. There will be no pooling of people’s private information into a single, central dataset—it will be a federated data system—and user control will be at the heart of our plans. With a digital ID, people may end up having more choice over what they show the world, not less. If they are buying a drink at the bar, instead of showing a physical driving licence revealing their full name and address, they will be able to prove they are over 18 without even showing their exact birthday if they do not want to. We will ensure that our digital ID operates to international best practice standards for data security and privacy, and we are working closely with the National Cyber Security Centre to ensure that it keeps pace with the changing threats we face.

The third and final reason for introducing digital ID is to deliver greater fairness by showing exactly who has the right to work in the UK. Digital ID is not a silver bullet for tackling illegal immigration, but it will be a deterrent to would-be migrants who are considering coming to the UK, alongside all the other action we are taking. Making ID checks both mandatory and digital for all employers will provide us with far more actionable intelligence, so we can move swiftly to identify rogue employers who are not following the rules. Under this Government, illegal working arrests have gone up 50% in the last year. That is progress, but our digital ID will help us to do more. It will be mandatory for right- to-work checks by the end of this Parliament, helping tackle illegal working, cracking down on rogue employers, creating a level playing field for employers which do the right thing, and giving people who do have the right to be here the cast-iron guarantee that this is their country and that they are welcome in the UK.

For our new ID to be both effective and fair, it must be genuinely inclusive. That is non-negotiable for the Government, and for me personally. Currently, around one in 10 UK adults does not have a passport or a driver’s licence to prove their identity, and around 1.5 million people do not have a smartphone, laptop or tablet, or are digitally excluded for another reason. We are already making progress with our digital inclusion action plan. We will continue to work closely with all the relevant organisations to understand the barriers to inclusion and how they can be overcome, so we bring everyone into the system. I want to hear directly from honourable Members across the House about these matters, and from those in the digital identity sector who have so much experience to learn from. We will consider physical alternatives to the virtual document and face-to-face support for those who need it, such as the 5% of UK households which do not have home internet access. Ultimately, however, we want Britain to be a country where everybody has the digital skills and access to be part of the modern world, including through our new digital ID to unlock more effective services and support.

To conclude, we will launch a full consultation on our plans by the end of this year, including with parliamentarians, the devolved Administrations and members of the public. Legislation informed by that process will follow shortly afterwards. I know that honourable Members will have many questions and I look forward to taking them, but let me just say this. Some 92% of people over 16 already have a smartphone. Many of us already use digital credentials held in our phone wallets, from tickets to events and online banking to storing boarding passes. People should expect the same service from the Government. Indeed, we should be criticised if we are not modernising our services to make them easier and more convenient for the public. Years from now, when we look back, I believe that having your ID on your phone will feel like second nature, putting more power directly into people’s hands and giving them more control over how they interact with government and the whole range of services. That is something worth striving for. I commend this Statement to the House”.

My Lords, we unequivocally oppose the Government’s dangerous mandatory digital ID policy, both in principle and in practice. If it is allowed to become legislation, the electorate risks being subjected to an extraordinary expansion of state power, one that comes not only at the expense of personal freedom but at great cost to the taxpayer.

Before I outline our objections to this proposal, it is important to understand the wider context in which this policy has been announced. Over this Government’s year in power, an estimated 50,000 people have entered the country on small boats, the largest recorded number to date, but the Secretary of State has claimed that digital IDs will deter these illegal migrants. Where is the evidence for this claim? Criminal gangs and illegal workers already operate outside formal employment and taxation systems. They do not care about paperwork or credentials. They work illegally, beyond the reach of existing regulation. They subvert existing national insurance requirements. Why would we expect digital ID to be different? To suggest that digital ID would somehow deter these operations is untested, unfounded and too optimistic to be convincing.

We are concerned, too, about the vast scope of this programme. The Government have claimed that digital IDs will result in “more joined-up” public services, saving people time from having to restate personal details to multiple departments. Here the Government seem to me to conflate separate issues: more effective public services and curbing illegal migration. They promise an end to bureaucracy while simultaneously constructing one of the most intrusive systems of state surveillance in our nation’s history. This is vast in its objectives, slight in its detail and, frankly, creepy in its reach into our privacy. Better online services do not require a centralised identity regime. We already have mechanisms such as right-to-work checks and DBS verification. These have all been designed with consent and privacy in mind, with nobody forced to pursue the digital route. The Government’s policy would herald an end to that freedom.

My Lords, the introduction of compulsory digital ID represents another fundamental error by this Government. The Liberal Democrats strongly oppose this proposal, which is a serious threat to privacy, civil liberties and social inclusion. We thank the Minister for bringing the Secretary of State’s Statement to this House today, but my disappointment and opposition to the Government’s plan more than mirrors that of my honourable friend Victoria Collins in the Commons yesterday.

The core issue here is not technology but freedom. The Government insist this scheme is non-compulsory, yet concurrently confirm that it will be mandatory for right-to-work checks by the end of this Parliament. This is mandatory digital ID in all but name, especially for working-age people. As my party leader Sir Ed Davey has stated, we cannot and will not support a system where citizens are forced to hand over private data simply to participate in everyday life. This is state overreach, plain and simple.

The Secretary of State quoted Finland and the ability of parents to register for daycare, but I think the Secretary of State needs to do a bit more research. That is a voluntary scheme, not a compulsory one. We have already seen the clear danger of mission creep. My honourable friend Victoria Collins rightly warned that the mere discussion of extending this scheme to 13 to 16 year-olds is sinister, unnecessary and a clear step towards state overreach. Where does this stop?

The Secretary of State sought to frame this as merely a digital key to unlock better services. This dangerously conflates genuine and desirable public service reform with a highly intrusive mandate. First, the claim that this will deliver fairness and security by tackling illegal migration is nothing more than a multibillion-pound gimmick. The Secretary of State suggests that it will deter illegal working, yet, as my colleagues have pointed out, rogue employers who operate cash-in-hand schemes will not look at ID on a phone. Mandatory digital ID for British citizens will not stop illegal migrants working in the black economy.

I thank the noble Viscount, Lord Camrose, and the noble Lord, Lord Clement-Jones, for the points that they have raised with the Government. Unsurprisingly, I have no doubt that this is an area in which there will be strong interest across the House. I remind the noble Viscount, Lord Camrose, of the comment of the noble Lord, Lord Hague, that the:

“Arguments against digital ID are paper thin”.

I shall address the concerns that have been raised by the noble Viscount, Lord Camrose, and the noble Lord, Lord Clement-Jones. In the context of the Data (Use and Access) Act, we were clear that the services under that legislation were not mandatory, nor were they ever designed to be, and they cover many of the areas that have been discussed so far. This new national digital ID will be required, specifically and only, for right-to-work checks by the end of this Parliament. It is a very narrow use for a very specific purpose.

However, we have always believed and continue to believe that there are huge upsides for a digitally enabled society, one where everyone feels able to participate, everyone feels a sense of agency and everyone’s lives are made easier by a digital key that indeed unlocks access to services—something that is a big upside to a digitally enabled society. Those businesses that enable this, as we have seen in other countries that have introduced a digital ID, and the services that those businesses provide will have an important role to play.

We expect the digital identity market to be able to build on the national digital pass and offer value-added services for individuals and businesses. In countries where digital ID is well established, the private sector has built a wide range of services around it, making everyday tasks such as open banking, renting a flat and applying for a mortgage faster, simpler and more secure, but that is not a mandatory use of this. The required use is for the right to work.

My Lords, underpinning any individual ID scheme has to be an individual ID number. Other countries normally seem to base that on date of birth plus a scheme of other numbers. Can the Minister make clear to us whether we have decided what our system will be? How far have they advanced in developing it, and when is it likely to be rolled out?

I thank my noble friend for his question. The consultation will start later this year. It will be very broad, and we welcome input from many groups. We know that this is not straight- forward; it will require considerable thought about how to get it exactly right. The answer is that we do not yet have a view on exactly how the system will be designed. That will be part of the consultation process. It will not be done overnight, and it will require us to come back to this House on many occasions. It will have great public input and technical input as we design it.

My Lords, I am very sceptical about mandatory digital ID. Can the Minister tell us how many people at the moment do not even have a mobile phone, never name all the extra that is needed? When the Government talk about inclusion, this is one of the most exclusive kinds of suggestions. It was not even in the manifesto. If by any chance this actually did go through and become law, can the Minister give an absolute commitment that it would apply to the whole of the United Kingdom and that the Government would not listen to those people who say that, somehow, mandatory digital ID in Northern Ireland would be contrary to the Belfast/Good Friday agreement?