UK's Burnham set to drop digital ID scheme to prioritise cost of living, say allies

UK's Burnham set to drop digital ID scheme to prioritise cost of living, say allies
Newly elected leader of Britain's Labour Party Andy Burnham walks following his first engagement as leader, in Gravesend, Kent, Britain, 17 July, 2026, Reuters
Reuters

Britain’s incoming Prime Minister, Andy Burnham, plans to abandon the government’s digital ID programme as part of a wider effort to prioritise the cost of living and other everyday concerns.

Burnham is due to replace Keir Starmer as prime minister on Monday (20 July), when he is also expected to announce his new cabinet.

His office said scrapping the digital ID programme would be among his first decisions after taking office.

The scheme was originally intended to require employees to use a digital identity document for right-to-work checks. It was presented as part of the government’s efforts to tackle illegal employment and migration.

However, Starmer dropped the mandatory requirement in January following widespread criticism of the proposal.

Resources to focus on cost of living

Burnham’s spokesperson said the time and resources allocated to the national identity programme would instead be directed towards more urgent priorities.

“All the time and resource that was going to be spent on a national ID scheme will go instead to where it’s most needed, such as helping with the cost of living,” the spokesperson said.

The Office for Budget Responsibility estimated in November that the programme would cost around £1.8 billion between the 2026/27 and 2028/29 financial years.

Britons generally use documents such as passports and driving licences to confirm their identities. National identity cards introduced during the Second World War were abolished in 1952.

Conservatives criticise decision

Opposition Conservative MP Julia Lopez accused Labour of wasting public money on the programme.

“Labour have wasted millions of pounds on this project and now Andy Burnham is trying to pretend he’s riding to the rescue,” she said.

Labour deputy leader Lucy Powell described the decision as an example of the incoming government’s attempt to reset its priorities.

She acknowledged that the immediate savings might be limited but said abandoning the scheme would allow ministers to redirect attention and resources towards more pressing issues.

“This is an opportunity to reset, to refresh, to look at those things that are perhaps not just taking resource but are taking attention away from government priorities,” Powell told the BBC.

North Sea policy to remain unchanged

Powell said Burnham’s government would maintain Labour’s existing policy on new oil and gas drilling in the North Sea, according to interviews with the BBC and Sky News.

Labour’s 2024 election manifesto pledged not to issue new exploration licences while respecting licences that had already been granted.

These included the Rosebank and Jackdaw oil and gas projects in Scotland, whose regulatory approvals were overturned following a legal challenge in 2025.

Powell also said the government had the authority to place struggling water suppliers, including Thames Water, into special measures. However, she stopped short of confirming whether Burnham’s administration would take that step.

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