The UK’s long-running efforts to introduce a reliable digital identity system continue to face significant challenges, according to a new report from the National Audit Office (NAO).
The public spending watchdog has reviewed three decades of government attempts to develop digital identity systems and concluded that any future initiative could face difficulties in achieving value for money. The findings come after the government announced in July that it would not proceed with a planned digital identity card following a consultation earlier this year.
The UK has pursued several digital identity initiatives over the years. Government Gateway was introduced in 2001 and, at its peak, provided access to 227 public services before being decommissioned in 2019. Its login arrangements, however, continue to be used by HMRC.
A national identity card scheme introduced under the Blair government was later cancelled by the coalition government in 2010, with civil liberties concerns forming part of the decision. Gov.uk Verify was subsequently introduced, allowing commercial providers to offer a single sign-on service for people accessing public services.
Since 2021, the government has intended to replace Verify with the Gov.uk One Login system. However, the NAO says important aspects of its future use remain unclear, including how the system could be used by third parties such as accountants.
The latest report highlights that digital identity is not simply a question of creating a convenient way for people to prove who they are. Effective security and privacy protections will also be essential to maintaining public confidence in any future system.
According to the NAO, international experience suggests that digital identity systems are most successful when people find them useful in everyday life and have confidence that their personal information is properly protected.
The watchdog has also called for a clear plan and roadmap for any future digital identity initiative. Without a coordinated approach, there is a risk that separate and disconnected systems could develop without effectively addressing the wider challenge of connecting citizens’ data and public services.
The report further warns that the government’s existing plans do not contain internationally recognised criteria for measuring success. This could make it more difficult to determine whether future digital identity projects are delivering the intended benefits and providing value for public money.
The NAO’s findings raise wider questions about privacy, data security, civil liberties and the way personal information is managed as more public services move online. For individuals, businesses and professional advisers, the development of digital identity systems could have important implications for how identity and personal information are verified and shared.
While the government has abandoned its proposed digital identity card, the broader question of how people can securely and conveniently prove their identity in an increasingly digital environment remains unresolved. The NAO’s assessment suggests that any future approach will require clear objectives, effective safeguards and a well-defined implementation strategy.
