Laura Foster, associate director for tech and innovation at techUK, examines the debate around Digital ID. She unpacks the misconceptions shaping the conversation and outlines what government and industry must do to build a trusted, citizen‑centred system

We are at a crossroads on digital identity. In the last six months, following the UK Government’s announcement that it would mandate a national digital ID for right-to-work checks, headlines have been dominated by thoughts and opinions on whether that was the right choice or not.

Following much public outcry, in January, the government decided not to mandate its use, but a national digital ID itself remains a popular topic of conversation and will certainly continue to be so as we expect a consultation imminently. But neither digital ID, nor the journey to build a digital ID system in the UK, is a new debate in the UK; it has been ongoing since the introduction of the 2006 Identity Act.

After all this time, digital ID is still debated because it’s somewhat of a misunderstood subject.

Benefits
When implemented fairly, it can deliver real value for people. At its core, digital ID is about giving people a secure, convenient, and trusted way to prove who they are in the digital world: a teenager can prove their age at the self-checkout safely, privately, and without handing over a passport. A young renter looking for their first flat can verify their identity in minutes instead of waiting days. A parent can open a savings account for their child online during a lunch break without needing to search for paperwork or trying to find time to travel to a bank, and a retiree can use digital ID for the first time to securely access their pension data.

These benefits extend far beyond speed and convenience. A government analysis of the UK digital identity ecosystem found that efficiency, reduced administrative burden, improved user experience and, importantly, enhanced security and fraud prevention are core advantages of digital ID adoption.  From finance to travel, digital ID is also helping companies reimagine their services for customers in ways that prioritise access and choice. That is why techUK firmly believes that adoption of digital identity can offer access, convenience and security to citizens, and why it should be treated as a cornerstone of both public sector transformation and economic growth in the UK.

Scepticism 

However, despite all these benefits, digital ID is seen negatively. This tension between potential and perception sits at the heart of today’s debate.

At techUK, we have outlined the long history of this debate in our digital ID report, “Digital ID: Empowering citizens, enabling growth”, which we published shortly after the government’s initial mandatory digital ID announcement. Our conclusion was clear: the benefits will only be realised if government addresses the root causes of public scepticism now playing out in the debate.

First of all, we need clarity and consistency. Before the government’s announcement of mandatory digital ID, the Trust Framework for Digital Verification Services – a set of rules from government that show what a good digital identity looks like – was already delivering value. Whether for banking, age assurance, or right to work, millions of UK citizens have used some form of digital ID from one of the Digital Verification Service providers approved under this Framework. These companies currently employ over 10,000 people, and generate £2.05 billion annual revenue, a figure expected to double by 2030. Yet, since the announcement of the national digital ID, it has been unclear how this government policy will align with the Trust Framework, causing confusion for citizens and businesses alike. 

Secondly, that same clarity and consistency are essential to address citizen concerns. The national digital ID was not the only announcement on digital ID in 2025. In January of that year, government announced the creation of the GOV.UK Wallet. This initiative hopes to provide citizens with access to digital versions of official ID credentials – beginning with a veterans card and a mobile driving licence (mDL), before expanding to include passports and other government-issued documents by the end of 2027 (though it is likely that these timeframes have shifted.)

Although the announcement initially surprised industry, companies have since worked with government to ensure the GOV.UK Wallet complements, rather than competes with, existing services. The result has been a mixed model of digital ID, whereby a thriving private sector facilitates voluntary digital ID supported by the Trust Framework; meanwhile, the GOV.UK Wallet, which is still in its rollout, will develop government-issued digital credentials of existing physical IDs. Any national digital ID must fit this mixed model, recognising that no single actor can deliver it alone.

This can be seen in the example of fraud. Combatting fraud requires a connected anti-fraud ecosystem that brings together banks, telecoms, tech platforms, law enforcement and regulators, leveraging shared intelligence and advanced technology to stay ahead of increasingly sophisticated criminal networks. Stronger identity verification helps detect and prevent fraud, while shared threat intelligence enhances trust across the system. This is not a challenge government or industry can solve in isolation. The mixed model enabled through the Trust Framework provides one practical way to achieve this collaboration. 

Communication and design 

Finally, as our report has emphasised, public trust is not a given; it must be earned through clear communication and inclusive design that involves communities, accommodating diverse needs, and explaining in plain language what Digital ID (and digital verification services) does, and does not, do.  

The government’s reversal on mandatory digital ID should not be seen as defeat but as a pivot point. Handled well, it is an opportunity rather than a setback. It offers the chance to build a system that is flexible, inclusive, secure and trusted – one that brings citizens, government and industry together, not pushes them apart. If policymakers prioritise accessibility, transparency, trust frameworks and collaboration, digital ID could become one of this decade’s defining infrastructure achievements – empowering citizens and enabling growth in an increasingly digital world.